markkinaasema

Markkinaasema (Finnish: market position or market power) is a concept used in economics and competition law to describe the ability of a firm, product, or brand to influence conditions in a market, such as prices, output, terms of trade, or the allocation of resources.

A strong markkinaasema arises from factors like large market share, differentiated products, strong brand recognition, control of critical distribution channels, high entry barriers, and customer loyalty. Network effects and switching costs can reinforce it. The position is not solely about size; it also depends on how a firm can affect the behavior of rivals and customers in a given market.

Assessment and measurement involve multiple indicators. Market share is a common, though imperfect, signal. Other signals include profitability, price-setting ability, barriers to entry, supplier concentration, and the willingness of customers to switch suppliers. In competition law, markkinaasema is evaluated to determine dominance, where abuse of power such as unfair pricing, discriminatory practices, or exclusionary conduct may be restricted. The exact thresholds for dominance vary by jurisdiction, but high shares in concentrated markets often signal potential dominance.

Context and regulatory use: the concept is used in Finland and the European Union to identify potential market power and guide supervisory actions. Relevant authorities include the Finnish Competition and Consumer Authority and the European Commission. In practice, a firm with markkinaasema can influence terms of sale more than competitors, but the concept does not automatically imply illegal conduct.