Martin Peitz
An Appraisal of Market Studies
OECD, December 2025
Market studies – as a tool
▪ “market studies involve in-depth examinations of a market or industry to identify competition issues and propose solutions” (Competition Bureau Canada)
▪ In depth investigation of competition (or consumer protection) problems in a particular market or a particular constellation relevant in many markets
▪ Effects-based approach
▪ A well-done market study tends to be resource-intensive
Market studies and the OECD
▪ The OECD has provided a great service with its work on market studies
▪ and so has the ICN
▪ What can I do? Take a step back and provide an overview
Market studies
▪ Who does it?
▪ Mandate
▪ Who can decide to initiate it?
▪ What are the powers of the NCA?
▪ What can happen after the study has been carried out?
▪ Discussion
Market studies and partial substitutes – who does it?
▪ Market studies are carried out by the competition authority
▪ Other government bodies (or government thinktanks) could publish special reports on specific sectors with the purpose of understanding competition issues
Germany
▪ At its own initiative the German Monopolies Commission can write special reports (“Sondergutachten”)
▪ Special Report 84: Competition in the Food Supply Chain (November 2025)
Market studies – who can initiate them?
▪ The competition authority
▪ The government or individual ministries
▪ Parliament or parliamentary committees
▪ The courts
Market studies – why? Possible competition problems
Problematic market features
◦ Scale economies and fixed costs
◦ Network effects
◦ Switching costs
◦ Asymmetric information
◦ Behavioral biases that benefit incumbent firms
◦ [note: some of them may be regulation-induced]
Firm behavior
◦ Common ownership and cross-ownership
◦ Tacit collusion
◦ Business practices by non-dominant firms
◦ Problematic conduct by dominant firm that may be difficult to address under traditional competition law
Motta, M., Peitz, M., & Schweitzer, H. (Eds.) (2022). Market Investigations: A New Competition Tool for Europe? Cambridge: Cambridge University Press. ISBN 978-1-316-51316-3.
Market studies – which powers for the NCA?
▪ Information-gathering powers
▪ Powers to use the acquired information in enforcement actions under “traditional” competition law
▪ Remedial powers (market investigation tool)
Market studies – benefits for the NCA?
▪ Pre-enforcement instrument
▪ Remedies may more easily survive in courts
▪ Ex-post assessment of previous enforcement actions
▪ Communication device = reputation building toward industry, policy makers, and the broader public
▪ In-house learning (e.g. regarding empirical approaches)
Market studies – what follows?
▪ No competition or competition related concern – no action, no changes recommended
▪ Recommended (de-)regulation (e.g. in case of regulationinduced barriers to entry)
▪ Enforcement action under “traditional” competition law
▪ Remedies (in case of remedial powers)
▪ Competition problem, but no proven anti-competitive behavior
▪ Adequate remedies not available under traditional competition law
▪ Recommended legislation or regulation (to address a specific problem or to update competition law)
Market studies – issues
When strengthening the powers of the NCA in the context of market studies / market investigations
▪ resource use and available resources
▪ independence of the NCA
▪ mandate of the NCA
Market studies – a lifeline for legislatures and governments
▪ Public outrage and populistic inclinations may drive policymakers to act quickly; e.g., when there are high prices or unfavorable conditions for some customers in a market
→ A temptation for the legislature or government to intervene directly
▪ Market studies can be a lifeline