Monday, October 25, 2010
A New Approach to Relevant Market Under the Prospective Broadcasting-Telecommunications Business Development Law
Posted by D. Daniel Sokol
Young-Cheol (David) Jeong (Yonsei University - Law) offers A New Approach to Relevant Market Under the Prospective Broadcasting-Telecommunications Business Development Law.
ABSTRACT: Mergers and acquisitions are subject to competition law review based on the concept of “relevant market.” The relevant market is where a hypothetical monopolist can exercise despite SSNIP. To find the relevant market, critical loss analysis or its variations has been adopted by regulatory agencies. However, they have many drawbacks especially where new products or markets are being formulated. Thus, regulatory agencies still tend to rely on qualitative analysis in most cases. Korea is now about to legislate the Broadcasting and Telecommunications Development Business Law to address legal hodgepodges due to their convergence. Broadcasting and Telecommunications Development Business Law will offer the same regulatory framework to the same services, regardless of whether they fall within the meaning of broadcasting or telecommunications under the bifurcated regulatory framework. Under the Broadcasting and Telecommunications Development Business Law, services probably would be classified into three categories (network, contents, and platform), or even two (network and contents). A broader market approach would promote mergers and acquisitions, eradicate regulatory uncertainties, and foster technological advances. To achieve these goals, relevant markets are to be decimated as network, contents, and platform or even as network and contents in line with the regulatory framework.