Relevant market is a key term in competition law, for example when determining market power. Both a product market and a geographic market will be determined when delimiting the relevant market.
In competition law the relevant market defines the market in which one or more goods compete. Therefore, the Relevant market defines whether two or more products can be considered substitute goods and whether they constitute a particular and separate market for competition analysis.
The relevant market combines the product market and the geographic market, defined as follows:
- 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;
- A relevant geographic market comprises the area in which the firms concerned are involved in the supply of products or services and in which the conditions of competition are sufficiently homogeneous.