Product Market Law and Legal Definition
Product market refers to a market that applies to a firm’s particular product by identifying all reasonable substitutes for the product. A product market also determines whether these substitutes limit the firm’s ability to affect prices. Product market includes those services or commodities that are readily interchangeable by consumers for the same purposes. A product market is primarily a process of describing those groups of producers which, because of the similarity of their products, have the potential ability to take significant amounts of business away from each other.
The following is an example of a case law defining product market :
Product market is defined as the line of goods or services that are reasonably interchangeable in use.[Calabrese v. St. Mary's, 2007 U.S. Dist. LEXIS 10404 ( E.D. Mich. Feb. 15, 2007)]