Consumer goods makers have vertical as well as
horizontal market shares and have strong incentives to increase both.
The first, theoretical in nature, is that in
horizontal markets the use of the multi-market approach is imperative in most cases.
In this regard, it should be noted that a number of distributors (with varying degrees of success) have alleged horizontal conspiracies involving distributors who enlisted the manufacturer (whether willing or not) to terminate the plaintiff Or to refuse to grant the plaintiff a new distributorship in the area in which the defendant-distributors operated, so that there was an allocation of territories subject to the per se rule against
horizontal market division.
In summary, I argue that the most appropriate criterion for evaluating either the economic or diversity-of-voices effects of media mergers is the extent to which they increase
horizontal market concentration within particular media market segments or geographic areas.
Interestingly enough, the US has been largely a
horizontal market while Europe and Japan are vertically inclined.
Although firms have a variety of motives for vertical merger and other vertical restrictions, a traditional issue, which permeates much of the literature on vertical integration, is how the existence of
horizontal market power in one or more vertically-related industries creates motives for them to vertically integrate [13, 187-89].
"We don't see Pink as having a large
horizontal market," Guglielmi says.
It is distinguished from a
horizontal market, in which vendors offer a broad range of goods and services to a large group of customers with wide range of needs, such as businesses as a whole, men, women, households, or, in the broadest
horizontal market, everyone."--Wikipedia
This is a big
horizontal market, and GuardTime is already cashing in with such customers as Brother Industries, which manufactures multi-function printers using GuardTime integration.
It bestows additional market power on the superior vertical competitor that will enable it to capture
horizontal market share from rival producers that presently have the same or moderately higher shares.
The proposed operation does not give rise to any
horizontal market overlaps.
