What is an antitrust market?
A geographic market in an antitrust investigation is that area where customers would likely turn to buy the goods or services in the product market. Competition may be limited to a small area because of the time or expense involved in buying a lower-cost product elsewhere.
What is horizontal merger with an example?
Horizontal mergers are common in industries with fewer firms, as competition tends to be higher and the synergies and potential gains in market share are much greater for merging firms in such an industry. A merger between Coca-Cola and the Pepsi beverage division, for example, would be horizontal in nature.
What is the relevant product market?
A relevant product market comprises all those products and/or services which are regarded as interchangeable or substitutable by the consumer by reason of the products’ characteristics, their prices and their intended use.
How does the Ssnip test work?
The SSNIP test is a tool in product market definition in which a minimal possible sub-set of products is taken for analysis of finding out relevant product market. It is seen if a theoretical HM, if having an option, will increase the prices of the products in a non-transitory way.
Why is market definition important in antitrust?
Market definition is an important step in building an antitrust case or investigating a market for anticompetitive harms. The goal is to define a relevant market so that other things like concentration levels, market power, and market shares can be determined.
What is antitrust and competition in the Philippines?
The Philippines has general antitrust laws that prohibit unfair competition, and arrangements and combinations aimed to restrain trade or prevent by artificial means free competition in the market.
What is horizontal merger?
A Horizontal merger is a merger between firms that produce and sell the same products, i.e., between competing firms. Horizontal mergers, if significant in size, can reduce competition in a market and are often reviewed by competition authorities.
Is Facebook a horizontal merger?
Integration of Facebook, Whatsapp, Instagram & Messenger This is one of the best examples of horizontal mergers of present times. All of these were independent social media platforms started by different companies and one after another, over the years, these were integrated into one big social media company.
How is relevant market used?
Definition and use. The notion of relevant market is used in order to identify the products and undertakings which are directly competing in a business. Therefore, the relevant market is the market where the competition takes place.
Why is definition of the relevant market so important?
The concept of relevant market is important for the purposes of dominant position and concentration analyses, because an extensive or restrictive approach concerning the relevant market would have direct effects on the finding of a dominant position.
What is the Ssnip criterion?
SSNIP test seeks to identify smallest market within which a hypothetical monopolist could impose a Small Significant Non-transitory Increase in Price. Usually defined as a price increase of 5% for at least 12 months.
What is the SLC test?
The test depends on whether the conduct, practice, provision of a contract, arrangement or understanding (CAU) or transaction has the purpose, effect or likely effect of substantially lessening competition (SLC) in a market.
What is trade marketing and how it works?
Trade marketing is focused on individual retailers, unlike other marketing methods that are focused on a large population. Moreover, in trade marketing, you are required to provide large price margins to sellers, which reduces your profit margin. How to create a product trade marketing strategy?
What are trade promotions?
Trade promotions mean the offers your give to retailer and wholesalers to persuade them to buy your products. Trade promotions work quite similar to consumer promotion. You can use trade promotions to enhance your sales and increase your market placement. For example, you can give your products to retailers at 50% off or with other benefits.
What are the different methods of trade marketing?
Methods of trade marketing. Basic method of trade marketing is focusing on sales fundamentals, such as Distribution, Display, Promotion and Price. With data and knowledge of sales fundamentals, trade marketing develops market strategy aligned with brand strategy.
Who are the customers in trade marketing targets?
A retailer is also one of the customers in trade marketing targets. Plans of trade marketing is targeting customers and shoppers. Therefore, trade marketing should provide sales outlets with customer & shopper-based value creation plans. Sales outlets (customers) are a place that manufacturer can meet shoppers and consumers.