Power is measured through market share within a defined market, entry conditions, and direct evidence of pricing behavior. It is a lesser showing than monopoly power and is required for most rule of reason claims.
Direct evidence may substitute for share analysis.
Alternative Names:
Antitrust Market Power|Economic Power
Why it Matters?
Market power is a practical prerequisite in rule of reason cases, since a defendant lacking it cannot cause the anticompetitive effects the framework requires, which makes the absence of power a complete defense without reaching the conduct. Direct evidence of the ability to price above competitive levels can substitute for market definition and share analysis, which is the route plaintiffs use when market definition is difficult.
Frequently Confused with
Related terms
Frequently asked questions
How does market power differ from monopoly power?
Can plaintiffs avoid market definition?
