Determination of Market Share and Combined Market Share of Enterprises in the Relevant Market: Regulations and Provisions
How are market share and combined market share of enterprises in the relevant market determined?
According to Article 10 of the Competition Law 2018, the determination of market share and combined market share of enterprises in the relevant market is specifically regulated as follows:
- Based on the characteristics and nature of the relevant market, the market share of an enterprise in the relevant market is determined by one of the following methods:
+ The percentage ratio between this enterprise's sales revenue and the total sales revenue of all enterprises in the relevant market by month, quarter, and year;
+ The percentage ratio between this enterprise's purchase volume and the total purchase volume of all enterprises in the relevant market by month, quarter, and year;
+ The percentage ratio between the number of units of goods or services sold by this enterprise and the total number of units of goods or services sold by all enterprises in the relevant market by month, quarter, and year;
+ The percentage ratio between the number of units of goods or services purchased by this enterprise and the total number of units of goods or services purchased by all enterprises in the relevant market by month, quarter, and year.
- Combined market share is the total market share in the relevant market of enterprises participating in anti-competitive behavior or economic concentration.
- Revenue for determining market share as prescribed in Clause 1, Article 10 of the Competition Law 2018 is determined according to Vietnamese accounting standards.
- In cases where an enterprise has not been in business for a full financial year, the revenue, purchase volume, number of units of goods, and services sold or purchased to determine market share as prescribed in Clause 1, Article 10 of the Competition Law 2018 shall be calculated from the time the enterprise commenced operations to the time of determining market share.
The above is the content advising on determining market share and combined market share of enterprises in the relevant market. For more detailed information, you should refer to the Competition Law 2018.
How is the relevant market of an enterprise determined?
Article 9 of the Competition Law 2018 specifies the determination of the relevant market as follows:
- The relevant market is determined based on the relevant product market and the relevant geographical market.
The relevant product market is the market for goods or services that can be substituted for each other in terms of characteristics, use purposes, and price.
The relevant geographical market is a specific geographical area where substitutable goods or services are supplied under similar competitive conditions and differ significantly from neighboring geographical areas.
Respectfully!
