Legal Definitions - market share

Market share refers to the percentage of the total market for a particular product or service that a company supplies. It is calculated by dividing the company's output by the total market output.

For example, if a company produces 100 units of a product and the total market output is 1000 units, then the company's market share would be 10%.

Market share is often used in antitrust law to measure a company's market power. If a company's market share is high enough, usually 70% or more, it may be considered guilty of monopolization.

For instance, if a company has a market share of 80% in the smartphone industry, it may be accused of having too much control over the market and limiting competition.