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mined shall also be assessed
”
3
.
Three factors are considered in the determination of the relevant
product market. These are demand substitution, supply substitution,
and potential competition. Demand substitution means that the product
can be replaced by the consumer with another product. The similarities
with regard to product quality, usage, and price are important in sub-
stituting products.
In supply substitution, if the products can be switched to products
that can be produced with minimum risk, cost, and have ease of mar-
ketability, such products are considered in the same relevant product
market. In the Guidelines on the Definition of the Relevant Markets,
paper production is shown as an example in terms of supply substitu-
tion, due to the ease in the production of different quality of papers.
Relevant Geographic Market
In terms of the Notification Form, and with regard to the affected
markets, the relevant geographic markets should be defined with nec-
essary justifications. As a result, this is also important to accurately
define. In Communiqué No. 1997/1 on the Mergers and Acquisitions,
relevant geographic markets are defined as the “[..]
areas in which
undertakings operate in the supply and demand of their goods and
services, in which the conditions of competition are sufficiently
homogenous, and which can easily be distinguished from neighboring
areas, as the conditions of competition are appreciably different from
these areas.
”
Obligation of Notification
The Notification Form regulates in the context of affected markets,
under different headings, detailed obligations under which to provide
information. In terms of affected markets, parties shall define the
affected market, provide information, and show justification. If parties
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3
Similarly, definitions for product markets are given in Article 3 of the Block Exemption
Communiqué no. 2002/2 on Vertical Restraints, as well as in Article 3 of the Block Exemption
Communiqué no. 2005/4 on Vertical Agreements, Article 3 of the Notification Form of
Guidelines on the Voluntary Notification of Agreements, Concerted Practices, and Decisions of
Associations of Undertakings and Concerted Practices in Motor Vehicles Sector.