Globalisation and the definition of the relevant geographic market in antitrust practice

Leo Sleuwaegen and Isabelle De Voldere ()
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Isabelle De Voldere: Vlerick Leuven Gent Management School

Vlerick Leuven Gent Management School Working Paper Series from Vlerick Leuven Gent Management School

Abstract: This paper starts from the antitrust practices in the European Community and the US with respect to the delineation of the relevant geographic market in dealing with concentrations and shows that regulations and guidelines at this moment focus almost exclusively on demand substitution. However, the process of globalisation involves essentially global supply conditions and competition. A methodology is presented for delineating the relevant geographic market, that better takes this globalisation trend into account and brings both demand and supply substitution better in balance. The practical use of the methodology is illustrated for the Volvo-Scania merger case that was blocked by the European Commission in 1999.

Pages: 38 pages
Date: 2001-11-06
New Economics Papers: this item is included in nep-com, nep-ind and nep-lam
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Persistent link: https://EconPapers.repec.org/RePEc:vlg:vlgwps:2001-7

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