Research On The Dominant Market Position Definition

Marketing ascendancy represents marketing operator’s power. Operators’ dominantmarket position may be due to government authorization, such as the industry of telecom,electric power, railway and so on, which is widely exist in our daily life; it also could be dueto operator’s innovation and far-sight, such as Microsoft in American; Operators can alsoobtain the dominant market position by signing some illegal monopoly agreements.Operators can obtain dominant market positions by different reasons, but the existingof marketing ascendancy must has potential harm for the healthy development of the marketeconomy and the effective competition of the whole market.The premise of abusing dominant market position is defined by the identification ofoperators’ dominant market position, but it is still unclear about how to define the dominantmarket position in practice. This paper take the case, Beijing scholar electronic technologyCo., LTD v. Shanghai Shengda networking development Co., LTD, Shanghai Xuantingentertainment information technology Co., LTD., as an example, to precisely analyze thestandards and processes of the definition of dominant market position, so as to get usefulsuggestions to guide the litigation of similar cases in the future.This paper is divided into fiver parts:The first part: case profile and the derivation of the problem. This part mainly describesthe case of Beijing scholar electronic technology Co., LTD v. Shanghai shengda networkingdevelopment Co., LTD, Shanghai XuanTing entertainment information technology Co., LTD.,by comparing the different issues concluded between the Court of First Instance and the Courtof Second Instance, this paper leads to its theme, that is, how to define the dominant marketposition of operators.The Second part: Analyzing the standards of identification of dominant market position.In western competition law theory, it has offered three standards of dominant market positionidentification, that are, market performance, market behavior and market structure. Marketstructure standard is widely used in practice because of its stringency and maneuverability.The market share is an important factor to identify the dominant market position, but it is notthe only factor. The identification of dominant market position not only should consider themarket share, but also should consider the auxiliary standards of market share. The third part: this part analyzes the steps of dominant market position identification.In order to define whether operators have dominant market positions, we first shall determinethe relevant market. There are two general methods, alternative analysis theory and assumemonopoly test. The identification of relevant markets is usually from two aspects: relevantproduct market and relevant geographic market, if necessary, we also should consider therelevant time. After determining the relevant market, we should start to calculate the marketshare of target operators. The market share is the key factor of defining marketing ascendancy,combine, if it is combined with market competition auxiliary standard, the dominant marketposition can be defined eventually.The fourth part: summarizing this paper and giving advices about potential problemsrelated to the identification of relevant market.The fifth part: case reviews.