§3.2.2.2 Barriers and costs associated with switching supply

61. The Commission considers several barriers and costs when assessing the possibility of widening the market based on supply substitution. For example, it considers whether, to switch their production or supply, undertakings need to incur specific capital investments or specific investments in production processes, learning and human capital, establishment of brand or name recognition, access to data, retooling costs or other investments. Information on the existence of legal or administrative obstacles, such as the necessity of holding a particular licence, or obstacles of a strategic nature that may affect the switch of production or supply, such as contractual ties or exclusivity agreements, can also be relevant. The Commission also analyses the incentives of undertakings to switch their production or supply, including whether such a switch would lead to a loss in sales of other products, and their willingness to switch. As explained in paragraph 37, when any such barriers or costs are not insignificant, the Commission takes into account the competitive constraints (if any) exercised by such undertakings as part of the competitive assessment rather than by expanding the relevant market.

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Source: EUR-Lex (Cellar) · retrieved 2026-09-07