ANTITRUST | The European Commission publishes its revised notice on the definition of the relevant market

On 8 February 2024, the European Commission (“EC”) published its revised notice on market definition (“Revised Notice”), which replaced the one adopted in 1997. The Revised Notice’s principles were conceived to be applied across all sectors of the economy. Compared to the past version, the Revised Notice clarifies certain important issues, including the importance of market definition for competition law, the importance of non–price competition parameters – such as innovation and quality aspects of products – when determining the relevant market, the principles related to the geographical reach of the market and the use of the “Small but significant and non-transitory increase in price” (‘SSNIP’) test. Great emphasis was also given to market definition in digital markets, concerning multi-sided platforms, digital ecosystems and market share calculation in zero-price markets. Overall, the aim of the Revised Notice is to adapt competition law to the new market realities brought about by societal and economic developments. Such intervention was also considered pivotal in enhancing predictability and legal certainty, as to lead to more effective enforcement of competition law.

Newsletter n. 93 – February 2024