Total Squared Market Share of Enterprises in the Relevant Market is Calculated Using Which Formula?
According to Clause 4, Article 2 of Decree 35/2020/ND-CP providing guidance on the Competition Law (Effective from May 15, 2020), the content is regulated as follows:
The sum of the squared market shares of enterprises in the relevant market is calculated according to the following formula:
Sum of squared market shares = S1^2 + S2^2 + ... + S(n)^2
Where: S1,...S(n) are the respective market shares of the first to the n-th enterprise.
For example: In the same relevant market, there are 3 enterprises with respective market shares of 30%, 30%, and 40%. The sum of the squared market shares of the 3 enterprises in the relevant market is determined as 30^2 + 30^2 + 40^2 = 3400.
Sincerely!
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