Defining The Relevant Market And Its Methods Of Study

With the regionalization and globalization of the world economy, large multinational companies'M&A activities in the global are more frequent. Especially with the long-term and quickly economic development, our country' leading enterprises have become the potential acquisition targets of large multinational companies. The other hand, in order to cope with fierce international competition, domestic M&A action between enterprises also becomes the trend of rapid development. With the increase in merger and acquisition activity and the rapid expansion of business scale, enterprise behavior may be harm to effective competition and give birth to a certain degree of market monopoly. Antitrust authorities in determining whether the conduct illegal business, whether a monopoly, you must first define the "relevant market" range. Clear definition of the relevant market method and the standard is to determine whether the illegal business and illegal levels of the basis and premise. How to define the relevant market will determine the fate of a business. Behavior for the same market, if market definition is too strict, the possibility of corporate law will be great; the contrary, if the market definition is too loose, the possibility of corporate law will be greatly reduced. Different markets in different countries define the standards used to define a standard direct reflection of the different attitudes of different anti-monopoly. China has promulgated the "anti-monopoly law," but if the relevant market definition methods and standards are not clear, "anti-monopoly law" will find it difficult to implement. Development of different national markets, the market will define the differences in the standards. Therefore, we have to determine the appropriate method of China's national conditions and criteria for market definition. This paper introduces the topics of the background and significance, that its method of defining the relevant market, whether in theory or in practice are extremely important. Domestic and foreign experts and scholars on the relevant market definition problem has been done a lot of research, this article briefly introduces the current research status of the problem at home and abroad. Then this paper describes the general principles of defining the relevant market, including the meaning of the relevant market and the legal implications of the theory; relevant market definition have the theoretical background, the early definition of judicial practice and methods of production; three principles defined in the relevant market. Then this paper, the western countries the practice of defining the relevant market to do a simple comparative analysis. In this section, the paper chose the U.S., EU, Japan, three countries and regions were analyzed. Because the United States in the anti-monopoly, defining the relevant market always walk in front of the world, the paper describes developments in the United States has the most detailed. By defining the relevant market practice of western countries the analysis, the paper points out two of defining the relevant market trends. On this basis, the paper from the relevant product market definition, the relevant geographic market definition, market definition of the relevant time that defining the relevant market were factors to be considered. This paper then describes the method of defining the relevant market. Introduced early in this first of the five methods of defining the relevant market, namely homogeneous product Recognition Act, demand substitution Recognition Act, sub market theory, group theory of goods, supply of alternative Recognition Act; subsequently introduced the world at present is very popular among the three species defined method, that cross-price elasticity of Law, SSNIP test method, critical loss analysis, in which the SSNIP test method described in most detail. On this basis, the paper also briefly discusses the problem of defining the relevant market evidence. By defining the relevant market practice of western countries and methods of analysis, pointing out that China learn from international experience, and summed up the Western practice of using these methods should pay attention to.