United States v. Du Pont & Co. is the case usually referred to in connection with interchangeability of a product while determining a product market. In this case, the Appellant produced 75% of the cellophane sold in the US. But, cellophane constituted only 20% of the flexible packaging materials. The Supreme Court, therefore, affirming the lower court’s decision held that flexible packaging material constituted to be the relevant market since all these products are interchangeable.
A well-defined market may also have a sub-market constituting product markets for antitrust purposes. It was decided by the US Supreme Court in Brown Show Co. Inc. v. US that the boundaries of such a sub-market may be determined by examining such practical indicia as industry or public recognition of the sub-market as a separate economic entity, the product’s peculiar characteristics and uses, unique production facilities, distinct customers, distinct prices, sensitivity to price changes, and specialized vendors. Though reaching out to identify sub-markets is not expressly provided under the Indian law, ‘consumer preferences’ can be used for this purpose.
However, this is a vague provision and need concrete references that have not yet been looked at.
HOW IS MARKET POWER ESTABLISHED
After determining …show more content…
Chennai-based Fast Track Call Cab Pvt had filed a case against Ola, operated by ANI Technologies Pvt., in the CCI alleging predatory pricing and abuse of dominant position, covered by Section 4 of the Competition Act. The CCI then asked the DG Investigations to probe the matter and submit its report. Sources privy to the development said the DG did not find the company guilty because there is enough competition with the presence of companies such as Uber. "Abuse of dominant position can take place only if the company enjoys dominant position”, held the
A well-defined market may also have a sub-market constituting product markets for antitrust purposes. It was decided by the US Supreme Court in Brown Show Co. Inc. v. US that the boundaries of such a sub-market may be determined by examining such practical indicia as industry or public recognition of the sub-market as a separate economic entity, the product’s peculiar characteristics and uses, unique production facilities, distinct customers, distinct prices, sensitivity to price changes, and specialized vendors. Though reaching out to identify sub-markets is not expressly provided under the Indian law, ‘consumer preferences’ can be used for this purpose.
However, this is a vague provision and need concrete references that have not yet been looked at.
HOW IS MARKET POWER ESTABLISHED
After determining …show more content…
Chennai-based Fast Track Call Cab Pvt had filed a case against Ola, operated by ANI Technologies Pvt., in the CCI alleging predatory pricing and abuse of dominant position, covered by Section 4 of the Competition Act. The CCI then asked the DG Investigations to probe the matter and submit its report. Sources privy to the development said the DG did not find the company guilty because there is enough competition with the presence of companies such as Uber. "Abuse of dominant position can take place only if the company enjoys dominant position”, held the