Our May 2009 Casenote Markets Without Substitutes – Substitution versus constraints as the key to market definition looks at whether markets are defined as consisting of products that are close substitutes or even interchanageable in use. It finds that there are many instances and case law defining markets for products which are not substitutes or even used for the same purpose, and can lead to apparently distinct markets being collapsed into one market consisting of upstream and downtream products in the supply chain.  The discussion points to contraints rather than substitutability being key to market definition, and that the focus on direct substitution between products can be misplaced and misleading. I slighty extended version was published in the European Competition Law Review in 2010.

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