§4.5 Market definition in the presence of after-markets, bundles and (digital) ecosystems

99. In certain circumstances, the consumption of a durable product (primary product) leads to the consumption of another connected product (secondary product). This is often called an ‘after-market’. In these circumstances, the Commission also takes into account the competitive constraints imposed by market conditions in the respective connected markets when defining the relevant markets for the primary and secondary products and/or in the competitive assessment. 100. There are generally three possible ways to define relevant product markets in the case of primary and secondary products, namely: (a) as a system market comprising both the primary and the secondary product (137); (b) as multiple markets, namely a market for the primary product and separate markets for the secondary products associated with each brand of the primary product (138); (c) as dual markets, namely the market for the primary product on the one hand and the market for the secondary product on the other hand (139). 101. The definition of a system market may be more appropriate: (a) the more likely it is that customers take the whole-life costs into account when purchasing the primary product; (b) the higher the expenditure on (or the value of) the secondary product(s) compared to the expenditure on (or the value of) the primary product; (c) the higher the degree of substitutability between primary products and the lower the switching costs between primary products; (d) when there are no or few suppliers specialised only in the secondary product(s) (140). 102. Otherwise, it may be more appropriate to define dual markets or multiple markets, depending primarily on the degree of substitutability between the secondary products of the various suppliers. For instance, if secondary products from different suppliers are compatible with all or most of the primary products, the definition of dual markets may be more appropriate, whereas if customers of the primary product are locked-in to using only a restricted set of secondary products, the definition of multiple markets may be more appropriate. 103. In other circumstances, although the consumption of one or more products is not dependent on a primary product, customers may still prefer to consume several products together as a bundle. In those circumstances, the Commission may examine whether the bundle constitutes a relevant product market distinct from the individual products, by assessing substitutability between the bundle and the individual products (for instance, by assessing whether customers would source the individual products separately in the event of a degradation of the supply conditions of the bundle) (141). 104. (Digital) ecosystems can, in certain circumstances, be thought of as consisting of a primary core product and several secondary (digital) products whose consumption is connected to the core product, for instance, by technological links or interoperability (142). When considering (digital) ecosystems, the Commission may thus apply similar principles to those applied to after-markets to define the relevant product market(s) (143). When the secondary (digital) products are offered as a bundle, the Commission may also assess the possibility of that bundle constituting a relevant market on its own. Although not all (digital) ecosystems fit an after-market or bundle market approach, the Commission takes into account, where relevant, factors such as network effects, switching costs (including factors capable of leading to customer lock-in) and (single- or multi-) homing decisions for the purpose of defining the relevant product market(s).

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