Entry Barriers

Note: a description about Entry barriers is also available in the Competition Law Portal of the European Encyclopedia of Law.

Entry barriers in the European Antitrust Law

Meaning of Entry barriers provided by the “Glossary of terms used in EU competition policy” (European Commission. Directorate-General for Competition. Luxembourg: Office for Official Publications of the European Communities, cop. 2002): Barriers to entry are factors that prevent or hinder companies from entering a specific market. Entry barriers may result, for instance, from a particular market structure (for example, sunk cost industry, brand loyalty of consumers to existing products) or the behaviour of incumbent firms. It is important to add that governments can also be a source of entry barriers (such as through licensing requirements and other regulations).