WHAT IS A RELEVANT MARKET?

The relevant market refers to the market in which a particular good or service is sold and which comprises two dimensions: the relevant product market and the relevant geographic market. Each aspect is defined as follows:
(1) A relevant product market comprises all those goods and/or services which are regarded as interchangeable or substitutable by the consumer or the customer, by reason of the goods and/or services’ characteristics, their prices and their intended use; and
(2) The relevant geographic market comprises the area in which the entity concerned is involved in the supply and demand of goods and services, in which the conditions of competition are sufficiently homogenous and which can be distinguished from neighboring areas because the conditions of competition are different in those areas.
The following factors help determine the relevant market:
* Possibilities of substituting goods and services with other domestic or foreign products, considering technological possibilities, availability of substitute products to consumers, and the time required for such substitution;
* Cost of distribution of goods and services, along with its raw materials, and supplements and substitutes from other areas and abroad, considering freight, insurance, import duties, and non-tariff restrictions; the restrictions imposed by economic agents or by their associations; and the time required to supply the market from those areas;
* Cost and probability of users or consumers seeking other markets; and
* National, local or international restrictions which limit the access by users or consumers to alternate suppliers, or the access by suppliers to alternate consumers.