Defining product markets in the digital economy in the light of the draft Commission Notice
on the definition of the relevant market
for the purposes of EU competition law of November 8, 2022 Cover Image

Definiowanie rynków produktowych w gospodarce cyfrowej w świetle projektu Zawiadomienia Komisji w sprawie definicji rynku właściwego do celów unijnego prawa konkurencji z 8 listopada 2022 roku
Defining product markets in the digital economy in the light of the draft Commission Notice on the definition of the relevant market for the purposes of EU competition law of November 8, 2022

Author(s): Bartosz Targański
Subject(s): Public Law, Law on Economics, EU-Legislation
Published by: Wydawnictwo Naukowe Wydziału Zarządzania Uniwersytetu Warszawskiego
Keywords: relevant market; market share; digital economy;

Summary/Abstract: The Notice on the definition of the relevant market for the purposes of Community competition law (the Notice)1 is being reviewed for the first time since its publication in 1997. Since then, the rapid increase in data transfer speeds and the simultaneous increase in processor computing power have made it possible to largely transfer the sales and distribution processes of products to ICT networks. The digital economy that has emerged as a result of these processes is characterized by a new dynamic nature of competition. In addition to traditional competition parameters, such as price and product quality, market position is a determinant of online advertising, access to data, network effects, multilateral aspects, buyer behavior and the presence of the entrepreneur in many distribution channels. It is therefore necessary to adapt the basic tool for measuring market power, which is the definition of product markets, to the new digital realities.The aim of the article is to present the main aspects of defining relevant markets in the digital economy in the document replacing the notice, i.e. the draft Commission Notice on the definition of the relevant market for the purposes of EU law (hereinafter: draft notice)2.The principles for defining relevant markets within the digital economy constitute a new section of the document and summarize the decision-making achievements of the European Commission (hereinafter: the Commission or EC) in the most famous cases in recent years regarding Silicon Valley tycoons. Reading the document raises general doubts as to how helpful the new guidelines will be for average entrepreneurs, e.g. producers and distributors of goods offered to consumers, in independently assessing their market position. In the article, I also comment on the issue of examining substitutability among buyers on multilateral platforms in the light of the Commission's decision on Amazon Marketplace and Amazon Buy Box issued on December 20, 2022, i.e. after the publication of the draft notice.

  • Issue Year: 12/2023
  • Issue No: 1
  • Page Range: 74-84
  • Page Count: 11
  • Language: Polish