Relevant Market ECIPL Concept for CS Executive June and Dec 2026

Relevant Market ECIPL Concept is explained here for CS Executive by CS Wallah by PW. The Relevant Market is a key concept under the Competition Act, 2002, used to identify the space where competition exists or can potentially exist. It is determined by the Competition Commission of India (CCI).

It includes two main dimensions: the Relevant Product Market (products/services that are interchangeable or substitutable) and the Relevant Geographic Market (areas with homogenous competitive conditions). 

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Defining Relevant Market (Competition Act, 2002)

The relevant market is where competition exists or can potentially exist. This concept is formally defined within the Competition Act, 2002.

According to Section 2(r) of the Competition Act, 2002, the relevant market is a market determined by the Competition Commission of India (CCI). The CCI makes this determination with reference to one or both of the following:

1. The Relevant Product Market, OR

2. The Relevant Geographic Market, OR

3. Both the product and geographic markets.

The CCI, not the enterprises, is responsible for defining this market. (Memory Tip: Associate 'R' from 'Relevant' with the section number, 2(r).).

Components of Relevant Market

The relevant market is typically broken down into two main components.

1. Relevant Geographic Market [Section 2(f)]

This refers to a market area where the conditions for competition in the supply of goods or services are distinctly homogenous. These conditions can be distinguished from those in neighboring areas.

Example: E-commerce vs. Local Stores

• Amazon vs. Flipkart: These platforms are in the same relevant geographic market. Both are online, require similar technology and internet access, and cater to a comparable tech-savvy consumer base. Their operational conditions are homogenous.

• Amazon vs. a Local Kirana (Grocery) Store: These operate in different markets. Amazon is online, while a local kirana store is offline. The technology required, consumer buying habits, and purchase conditions are entirely distinct.

Thus, Amazon and Flipkart are competitors within a shared geographic market, separate from the offline market of a local store.

2. Relevant Product Market

This refers to a market comprising all products or services that consumers regard as interchangeable or substitutable. This judgment is based on the product's characteristics, its intended use, and its price.

Example: Soft Drinks

If Pepsi is unavailable, a consumer will likely accept Coca-Cola as an alternative. This is because Pepsi and Coke are considered substitutes due to:

• Similar Characteristics: Both are carbonated soft drinks.

• Similar Intended Use: Both are consumed for refreshment.

• Similar Prices: Their price points are comparable.

Products with similar characteristics, intended use, and price are considered part of the same relevant product market.

Applied Examples of Relevant Product Market

Further examples clarify how to identify a relevant product market by analyzing product characteristics and price.

Case 1: Educational Courses

• Scenario A: Regular Batch vs. Fast Track Batch

• These are NOT in the same product market. A regular batch, typically 150-200 hours with live interaction, differs significantly from a fast-track batch, which is 80-90 hours, often for revision with no live interaction. Their prices are also typically different. Despite covering the same syllabus, differences in duration, features, and price place them in separate product markets.

• Scenario B: Two Different Regular Batches (e.g., Sarv 1.0 and Sarv 2.0)

• These ARE in the same product market. They offer identical content, teaching style, notes, and duration, making them perfect substitutes.

Case 2: Automobiles

• Scenario A: Maruti (Celerio, Swift) vs. Luxury (Audi, BMW)

• These are NOT in the same product market. Maruti cars are budget-friendly, fuel-efficient vehicles targeting a broader consumer segment. Audi and BMW are luxury cars with high-end features and significantly higher prices. A consumer looking for a Maruti Swift is generally not considering an Audi as a substitute. The markets are distinct.

• Scenario B: Audi vs. BMW or Ferrari vs. Audi

• These ARE in the same relevant product market. They operate in the luxury car segment, share similar high-performance characteristics, target an affluent consumer base, and are priced within a comparable (though high) range, making them direct competitors.

The Core Concept of Competition: Illustrative Examples

To grasp the competitive environment, examining contrasting scenarios is helpful.

Case 1: No Competition (Pepsi vs. Ferrari)

There is no competition between Pepsi and Ferrari due to their fundamental differences.

Since neither the product nor the geography is similar, these entities do not operate in the same relevant market and are not in competition.

Case 2: Direct Competition (Pepsi vs. Coca-Cola)

There is direct competition between Pepsi and Coca-Cola due to their high similarity.

Because both the product and the geography are the same or highly similar, Pepsi and Coca-Cola operate within the same relevant market and are direct competitors.