Competition

Competition issues in aftermarkets

 

Aftermarkets are markets for the supply of products or services needed for or in connection with the use of a relatively long-lasting piece of equipment that has already been acquired. In the economy, primary markets and aftermarkets are very common. Typical examples include cars and auto parts/repair services, printers and ink cartridges, and computers and software, just to mention a few. 

Once a primary product is purchased, consumers are required to buy aftermarket products or services which are compatible with that primary product.  If the primary good is a durable good (i.e. with a long life expectancy) and is highly priced consumers will be ‘locked in’ to certain supplier(s) in the aftermarket if switching to alternative primary goods is costly. Depending on the degree of interchangeability of the secondary products, the value and the life expectancy of the primary product and the degree of competition in the primary market, the manufacturer of the primary good may enjoy market power on the secondary market. And this may be true regardless of whether it has market power also on the primary market. The existence of market power raises question as to whether antitrust is warranted to protect consumer welfare on the primary and secondary markets.

In June 2017 the OECD held a roundtable on "Competition issues in Aftermarkets" to compare national approaches to a number of questions that can arise under competition law when aftermarkets are involved. The discussion benefited from the views of expert speakers, written contributions from participating delegations and from the Secretariat Background paper.

All related presentations and papers can be found on this page.  

Access the full list of Competition Policy Roundtables.

OECD BACKGROUND NOTE • NOTE DE RÉFÉRENCE

 JUNE 2017 SESSION INFORMATION AND DOCUMENTATION

PAPERS AND EXPERTS

Lorenzo COPPI Bio
Executive Vice President, COMPASS LEXECON

Luis CABRAL Bio
Professor of Economics, NYU Stern

 

Thomas GRAF Bio
Partner, Cleary Gottlieb, Belgium 

PAPERS BY PARTICIPANTS

Summary of all contributions

Chile

Croatia

EU

France Eng • Fre

India

Israel

Italy

Japan

Kazakhstan

Korea

Latvia 

 

 

Romania

Russia

Singapore

South Africa

Spain

Sweden

Chinese Taipei

Turkey

Ukraine 

United States

BIAC

PRESENTATIONS

 

DOCUMENTS AND LINKS

Market definition (2012)

Guidance to business on monopolisation and abuse of dominance (2007)

Refusals to deal (2007)

Remedies and sanctions in abuse of dominance cases (2006)

 

» Access the full list of Competition Policy Roundtables

» Link to the  OECD Competition Home Page 

 

 

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