Market definition and market power analysis
In competition law, a proper definition of the relevant market and the determination of the associated market power of companies is of essence. A too narrow definition of the market would increase the perceived market power of the firms whereas a too broad definition would fail to give a true indication of the real market power of those companies. Therefore the proper definition of  the relevant market is an indispensable step in the determination of the relevant market shares, market power and finally in the assessment of the degree of competition. Economic analysis has acquired increased relevance in the determination of the relevant market for competition law purposes.