Commission issues guidelines on market definitions

In May 2011 the commission adopted new guidelines for defining the relevant market for the purposes of the Law on the Protection of Competition. These guidelines provide details of the way in which the commission will apply the concept of 'relevant geographical market' and 'relevant product market'.

The types of evidence which the commission will consider relevant in defining the relevant market include:

• evidence of interchangeability in the recent past;
• opinions of buyers and competitors;
• consumer preferences;
• obstacles and costs related to the substitution of demand towards potential substitutes;
• different categories of buyer; and
• price discrimination.

The types of evidence which the commission will consider relevant in defining the geographical market include:

• evidence of diverting orders towards other areas in the past;
• basic demand characteristics;
• opinions of buyers and competitors;
• existing geographical buying patterns;
• market flows/shipment patterns; and
• obstacles and transfer costs related to diverting orders towards companies located in another area.

For further information on this topic please contact Srdjana Petronijević at Moravcevic Vojnovic Zdravkovic in cooperation with Schoenherr by telephone (+381 11 320 26 00), fax (+381 11 320 26 10) or email (s.petronijevic@schoenherr.rs).