A Study On The Relevant Market Definition Of Antimonopoly Law

Relevant market definition plays an important role in the theory and practice of anti-monopoly law. It is the prerequisite for effective implementation of anti-monopoly law and competition behavior analysis and thus a key element of the antitrust enforcement. In antitrust practice, the method used to define the market boundary depends on specific circumstances. After 1980s, lots of contries in the world increasingly tend to adopt SSNIP method to define the relevant market during the implementation of anti-monopoly law. The SSNIP method is usually called as "the hypothetical monopolist test", which is used to test whether a small but significant and non-transitory increase in p rice could cause the hypothetical monopolist profitable. The SSNIP method is superior to some traditional methods of defining market monopoly. However, in actual judicial practice of anti-monopoly, the SSNIP method still has some obvious limitations. In order to remedy flaws of the SSN IP method, the antitrust authorities in Europe and America have adopted many kinds of auxiliary test method to improve the SSNIP method, and have formed the method system of defining relevant market. The SSNIP method has been introduced to The Guide to Defining Relevant Markets recently issued in China.China issued guidelines on the relevant market definition that the "hypothetical monopolist test" that SSNIP test method as the main method of defining the relevant market, but there are difficulties in specifically applying this method to the law enforcement practice. Based on China's special conditions, the current judicial practice in the antitrust SSNIP need to refine and improve methods to ensure the effective implementation of anti-monopoly law.This paper analyzes the relevant market definition by using general economic theory and conducts a systematic review on the common method used to define the relevant market in the existing literature and their strengths and weaknesses. In particular, we analyzed the SSNIP test method and related methods and systematically analyze the factors that influence the relevant market definition. Finally, we analyze the implication of Europe and America experience of reference significance and propose relevant suggestions on the implementation of the relevant antitrust market definition for China.