The LC does not provide a test for market definition. According to the Explanations on Definition of Relevant Market, a relevant market is defined as follows:
• the product market must be defined by determining the goods that may be substituted;
• the geographical market must be defined by determining the territory in which the goods may be substituted;
• when determining the product market and geographical market, the supply substitution may be analysed only after analysis of the demand substitution; and
• after the definition of the relevant market, market players and their market shares must be determined.
The LC provides for the following definitions of a relevant market, product market and geographical market:
• ‘relevant market’ means a market of certain goods in a relevant geographic territory;
• ‘product market’ means the aggregate of goods, which from the consumers’ point of view are appropriate substitutes according to their characteristics, application and prices; and
• ‘geographical territory’ (or ‘geographical market’) means a territory in which the conditions of competition in a relevant product market are in essence similar for all undertakings and which, taking this into consideration, may be distinguished from adjacent territories.
The Explanations on Definition of Relevant Market are applicable to the same extent for dominance and merger control purposes.