How Should Antitrust Market Definition Address Innovation?

The increasing importance of innovation competition requires adjusting the definition of an antitrust market. The article considers how technological change affects the economic definition of a market. The article examines both the 2023 Department of Justice and Federal Trade Commission Merger Guidelines and the 2024 European Commission Notice on the definition of a relevant market. The article explains that the 2023 Guidelines’ proposed market definition using worsening of innovation is misguided. The article presents a comprehensive approach to the economic definition of a market and examines some of the effects of innovation. The article argues that antitrust market definition should address innovation and technological change.