Examining the notion of relevant market under EU competition law : the luxury fashion industry

Abstract

This research project will examine market definition in light of the luxury fashion industry. EU competition law rules outlined in the Commission Notice on the definition of the relevant market are applied to this industry. In this research project, it is shown how the general principles of defining the relevant market may lead to a more narrowly outlined market of luxury goods. A properly defined market is a crucial step in appraising which elements are important in competition analysis. Once the relevant market is defined, the competitive conditions with reference to the characteristics of the market in question may be examined. The luxury fashion industry is analysed in light of those factors, which the Commission regarded as relevant in other competition law cases. This research project will define the luxury fashion industry by examining the product market, geographic market and temporal market, which are the three main tests to properly define the market. Chapter one will discuss market definition in general and will introduce the Commission Notice and the luxury fashion industry. It is apparent that the luxury fashion industry has undergone radical changes in composition and its market structure is highly dependent on a few companies. Chapter two will focus on the relevant product market, evaluating landmark EU competition cases, deducing the most important factors to determine the relevant product market and applying them to the luxury fashion industry. Chapter three and four will examine the geographic market and the relevant temporal market respectively, while implementing general principles established by the Commission to the luxury fashion industry.