What constitutes the relevant market in antitrust cases?

The relevant market in antitrust cases is defined by its product and geographic dimensions, making it essential to consider both aspects together to fully understand competition dynamics.

The product market component focuses on the specific goods or services that consumers view as interchangeable or substitutable. This includes understanding the characteristics of the products, their intended use, consumers' preferences, and pricing. For example, the relevant product market for breakfast cereals would include all brands and types of breakfast cereals that consumers perceive as substitutes for each other.

The geographic market aspect pertains to the physical area where competition occurs. It encompasses the region in which companies operate and contend for customers, which can vary from local to national or even international depending on the nature of the product or service. Geographic boundaries are critical in assessing whether a firmy has market power, as competition might differ significantly from one region to another due to factors like distribution networks, local demand, and regulatory environments.

When analyzing potential antitrust issues, both the product and geographic markets must be defined clearly to evaluate whether a company has sufficient market power or if its practices may impede competition. Therefore, the combination of both product and geographic considerations forms a comprehensive view that is crucial for antitrust evaluations.