There have been increasing calls for greater clarity on the way that potential competition is treated within competition law. This reflects the fact that the importance of potential competition in the competitive analysis of many markets has been increasing as the pace of product evolution becomes more and more dynamic. While understanding the intensity of existing competition is still important, it therefore becomes crucial to explore barriers to entry, and the timeframe, likelihood and strength of the potential competitive constraints that are posed by potential entrants and by existing competitors whose potential threat might grow.
Potential competitive constraints can be relevant to the full ambit of competition agencies’ work since:
In June 2021, the OECD held a roundtable that explored the concept of potential competition. It looked at what potential competition is, in the context of different markets, and consider the timeframe over which it is assessed. It also looked at barriers to entry, and the way in which the potential, rather than existing, nature of a competitive threat affects the way that the threat is analysed.
Steven C. Salop Bio
Professor of Economics and Law, Georgetown University
Koren W. Wong-Ervin Bio
Partner, Axinn, Veltrop & Harkrider LLP
Niamh Dunne Bio
Associate Professor of Law, London School of Economics
Contributions from participating delegations
Related best practice roundtables
Non-price effects of mergers (2018)
Barriers to entry (2005)