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Simple English definitions for legal terms
relevant market
Read a random definition: Health Insurance Portability and Accountability Act
A quick definition of relevant market:
A relevant market is a place where people buy and sell things. It can be a physical place or a group of people who want to buy the same thing. For example, people who want to buy microchips are a relevant market. A relevant market is important because it helps companies know who their customers are and what they want. If a company can control a relevant market, they can raise prices without losing too many customers.A more thorough explanation:
A relevant market is a market that can be monopolized, meaning a market where a company can increase prices without losing too many sales. It includes both the product market and the geographic market.
For example, if a company sells a unique type of phone case and there are no other similar products available, then that company has a monopoly in the product market. If the company can raise the price of the phone case without losing too many sales, then the market is relevant.
Another example is a geographic market. If a company sells snow shovels in a city where it snows frequently and there are no other stores selling snow shovels nearby, then the company has a monopoly in that geographic market. If the company can raise the price of the snow shovels without losing too many sales, then the market is relevant.