The definition of a relevant market, in the first instance, allows CCCS to have an idea of the boundary within which competition takes place, i.e., where competitors constrain each other from exploiting their market power, and where business activities may injure competition. Once the market has been defined, the market share(s) of the firm(s) in question may be measured. This then allows CCCS to better understand for example whether agreements have an appreciable adverse effect on competition in a market in Singapore and whether individual firms are dominant.
Where an agreement involves undertakings whose combined share of the relevant market is low, the agreement is unlikely to raise competition concerns unless it involves, for example, price-fixing, bid-rigging, market sharing, or output limitations. An undertaking with low market share is also unlikely to possess market power. Therefore, an investigation relating to an abuse of a dominant position by an individual firm with low market share can normally be closed at an early stage, unless other relevant factors indicate that the firm possesses substantial market power.