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Keywords

merger control, product market, asymmetric definition, grocery retailing

Abstract

This article assesses whether there is a convergence in the approach of the EU and national competition authorities (NCAs) in how they define product markets for the purpose of merger control. The hypothesis of such convergence is tested in the sector of sales of groceries in large retail stores. The analysis of decisions issued by various European NCAs shows that some have adopted an asymmetric market definition: from the perspective of supermarkets and discount stores hypermarkets form part of the same product market, whilst hypermarkets are not constrained by supermarkets and discount stores. Conversely, there are also some NCAs that consider all three types of large retail stores as competitors and thus forming part of the same product market. These different conclusions do not seem to correspond to the inherent differences in the structure of competition on particular national markets. As a result, the initial hypothesis cannot be confirmed. The Authors therefore call for a more intense cooperation between NCAs in order to establish best practices when defining product markets for the purpose of merger control.

First Page

8

Last Page

21

Page Count

13

Publisher

University of Warsaw

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