Judgment_paragraph 113 · Telefónica, SA and Telefónica de España, SA v European Commission (T-336/07)

113It also follows from the Commission notice on the definition of the relevant market for the purposes of Community competition law (OJ 1997 C 372, p. 5), paragraph 7, that ‘[a] relevant product market comprises all those products and/or services which are regarded as interchangeable or substitutable by the consumer, by reason of the products’ characteristics, their prices and their intended use’. From an economic point of view, for the definition of the relevant market, demand-side substitution constitutes the most immediate and effective disciplinary force on the suppliers of a given product, in particular in relation to their pricing decisions (paragraph 13 of that notice). Supply-side substitutability may also be taken into account when defining markets in those situations in which its effects are equivalent to those of demand-side substitution in terms of effectiveness and immediacy. That means that suppliers are able to switch production to the relevant products and market them in the short term without incurring significant additional costs or risks in response to small and permanent changes in relative prices (paragraph 20 of that notice).

Telefónica, SA and Telefónica de España, SA v European Commission (T-336/07)

Key facts

History · 1 version

Connections