Market power meaning

This checklist summarises the factors relevant to assessing an undertaking’s market power. Such analysis is pertinent not only to mergers but also, for example, to determining whether an undertaking is to be regarded as dominant. Does an undertaking have market power? When evaluating market power, the following should be considered. Not every factor needs to be applied in each instance; ultimately, a case-by-case assessment, grounded in the characteristics of the relevant market, is required. Market position of undertaking and its competitors Calculation of market shares is ordinarily the starting point of any assessment The larger the market share, and the longer it is sustained, the greater the likelihood that the undertaking holds a dominant position 50% market share or more: generally evidence of the existence of a dominant market position 40–50% market share: may indicate market power, but this depends on additional considerations Below 40% market share: dominance is unlikely... ...

Links to useful intercreditor materials This table sets out the principal checks a junior lender should make when assessing a simple intercreditor agreement between senior secured lenders, junior secured lenders and unsecured subordinated creditors. It is designed for readers with limited familiarity with intercreditor arrangements. The table highlights the core, commonly encountered points in a straightforward secured bilateral corporate loan and does not attempt to capture every potential negotiation issue, nor matters arising in specialist or more complex deals such as those in the leverage finance market. What is reasonable will vary with the nature of the transaction, the identity of the lender and the parties’ relative bargaining power. For specialist intercreditor topics, see the materials referenced below... Introductory materials Practice Note: Introductory guide to Intercreditor Agreements, covering typical provisions found in intercreditor agreements. Practice Note: How to draft and negotiate intercreditor arrangements in loan transactions, offering introductory guidance on drafting and negotiation. Precedent: Intercreditor deed-single company, a precedent suitable for a straightforward...

A limited company can repurchase its own shares where the requirements of the Companies Act 2006 (CA 2006) are met. This is termed a share buyback, or a purchase of own shares. Beyond the CA 2006, additional rules and guidance are relevant to a listed company or an AIM company. A private limited company may only carry out an off‑market buyback; accordingly, this checklist does not cover on‑market buybacks. For an overview of share buybacks, including how off‑market and on‑market buybacks differ, see Practice Note: Share buybacks—the legal framework. Preliminary issues Before proceeding with a buyback, a private limited company should work through several preliminary points and may need to complete certain preparatory steps. For more detail, see Practice Notes: Private company share buybacks—initial considerations and Tax issues on share buybacks for corporate lawyers. Articles of association and shareholders' agreements: Check that the company’s articles provide the necessary power to undertake the proposed buyback...

In this issue: Air emissions and climate change Contamination and pollution Energy efficiency and buildings Energy for environmental lawyers Environmental information Environmental taxes, reliefs and incentives ESG and sustainability Hazardous substances and chemicals Nature, biodiversity and habitat conservation Waste Water, flooding and drainage Daily and weekly news alerts New and updated content Air emissions and climate change Greenhouse Gas Removals (GGR)-UK government publishes Business Model documentation On 27 August 2025, the Department for Energy Security and Net Zero (DESNZ) released a suite of papers on its proposed Greenhouse Gas Removals (GGR) Business Model and accompanying policy. The Lexis+ Energy team, working with Navraj Singh Ghaleigh, Senior Lecturer in Climate Law at the University of Edinburgh Law School, set out the context for the GGR Business Model; its relationship with the Power BECCS Business Model; the technologies the GGR framework intends to encompass; its legal footing and principal features; and how...

In this issue: Key developments and materials Electricity and gas market regulation and licensing Networks and network connections Conventional power, waste to energy, biomass, and CHP projects Nuclear energy Air emissions, efficiency, and climate change International energy Daily and weekly news alerts New and updated content Dates for your diary Trackers Key developments and materials Friends of the Earth has won a pivotal High Court judgment against the government, with the court ruling that the climate strategy advanced by the Secretary of State for Energy Security and Net Zero is unlawful. The court determined that adopting the Carbon Budget Delivery Plan contravened the Climate Change Act 2008. See: LNB News 03/05/2024 70. Electricity and gas market regulation and licensing Ofgem has released its conclusions on the consultation regarding updates to the licence fee cost recovery principles (LFCRP) and issued the LFCRP for May 2024. After reviewing consultees’ submissions, Ofgem confirmed it...

In this issue: Electricity and gas market regulation and licensing Renewable energy Conventional power, waste to energy, biomass, and CHP projects Hydrogen, CCUS and emerging technologies Energy disputes Air emissions, efficiency, and climate change International energy LexTalk®Energy: a Lexis®Nexis community New and updated content Dates for your diary Trackers Energy resources on Lexis+® Daily and weekly news alerts Electricity and gas market regulation and licensing DESNZ confirms enduring governance for Smart Secure Electricity Systems DESNZ has issued its response to the 2025 consultation on enduring governance for the Smart Secure Electricity Systems (SSES) Programme, confirming that Elexon, through the Balancing and Settlement Code (BSC), will establish new Technical and Security Governance Groups to guide the technical and security frameworks that enable consumer-led flexibility. Using powers in section 245 of the Energy Act 2023, the government will amend the BSC so Elexon can run these groups as BSC Panel sub-committees and...

Yunneng Wind Power Co. Limited successfully sought a Part 26A restructuring plan (RP), with the convening hearing in July 2023 and the sanction hearing in August 2023. The key points are set out below. Capitalised terms not defined here take the meanings assigned in the convening and sanction judgments. This Deal Debrief forms part of the Restructuring plans collection. For a fuller review of core metrics from RPs lodged in 2023, alongside commentary from leading figures in the restructuring sphere, see Practice Note: Market Insights Trend Report—trends in Part 26A restructuring plans in 2023 [Archived]. Name of plan company Yunneng Wind Power Co....

Why are construction products regulated? Construction products are regulated to: confirm that any item entering the market meets all legal obligations, and build trust among consumers, public authorities and manufacturers regarding product conformity What sort of products are affected? ‘Construction product’ means any product or kit manufactured and placed on the market for permanent incorporation in construction works, or their parts, where its performance affects how those works satisfy the basic requirements. This includes items such as doors, windows, shutters and gates, membranes, thermal insulation, chimneys and flues, sanitary appliances, fire alarms, flooring, fire-retardant products, space heating appliances, power cables, glass, fixings, and many others. Key definitions Placing on the market ‘Placing on the market’ is the first time a construction product is made available on the GB market, as described in UK government guidance. Making available on the market ‘Making available on the market’ means any supply of a construction product for distribution or use...

Telecommunications in the UK is governed by both sector‑specific regulation and the general framework of competition law. This Practice Note explains how Ofcom, the UK’s national regulator, undertakes market reviews of the telecoms sector, with a particular emphasis on the Physical Infrastructure and Business Connectivity Markets, and the Wholesale Fixed Telecoms Market Review. Ofcom’s powers Ofcom has powers under the Communications Act 2003 (CA 2003) to assess defined markets, judge whether competition is effective, and impose suitable remedies where competition issues are found. Several of these powers originated in European directives transposed into UK law. The most recent is Directive (EU) 2018/1972, which establishes the European Electronic Communications Code (Recast), implemented in December 2020. Those powers continue to apply because the implementing measures are EU‑derived domestic legislation and now sit within assimilated law. For further detail on the European Electronic Communications Code, see the Practice Note on the European Electronic Communications Code. ‘Assimilated law’ is the term for retained EU law (REUL) that remains in effect after the...

This Agreement is entered into on [ date ] Parties [ name of the Company ] [ of [ address ] OR incorporated in England and Wales under Company registration number [ number ], whose registered office is at [ address ] ] (Purchaser) [ name of the Company ] [ of [ address ] OR incorporated in England and Wales under Company registration number [ number ], whose registered office is at [ address ] ] (Generator) Background The Generator owns and operates the Facility. The Purchaser intends to purchase, and the Generator intends to sell, the electricity to be produced by the Facility in line with the terms of this Agreement...

1 What is dominance? 1.1 As a general guide, a firm that persistently holds above 40% of the market on a consistent basis is usually regarded as being in a dominant position. Typically, that level must be sustained for at least two consecutive years. Yet market share alone is not decisive; a company is dominant if, to a meaningful degree, it can operate independently of rivals, customers and consumers within the relevant market, rather than being constrained by them. 1.2 An organisation in a dominant position bears a ‘special responsibility’ to avoid behaviour that harms effective competition. Failing to live up to that duty may expose the business to allegations of abusing a dominant position. Identifying what amounts to abuse is not always straightforward or clear-cut. 2 Why market dominance is a concern 2.1 Dominant firms carry a special responsibility to make sure their actions do not skew or distort competition. 2.2 Such companies should routinely review their behaviour against that responsibility and question the...

[ insert company's name ] ([ Company ]), [ insert address of company ], together with [ insert address of sponsor or nominated adviser ] (the [ Sponsor OR Nomad ]), [ insert address of sponsor/nomad ]. [ insert date ] Dear [ insert name ] Open Offer of [up to] [ insert number ] ordinary shares of [ insert nominal value ] pence each in the capital of the Company at [ insert price ] pence per ordinary share [ or insert other description of transaction ] [ I OR We ] acknowledge that the Company proposes to launch an open offer of [ up to ] [ insert number ] new ordinary shares of [ insert nominal value ] pence each, at an offer price of [ insert offer price ] pence per share (the New Ordinary Shares), to its shareholders (the Open Offer). In conjunction with this, the Company intends to submit applications to the [ Financial Conduct Authority for admission of the New...