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Market concentration

HHI Calculator

Calculates the current HHI as the sum of squared market shares and, when two firms are selected, the post-merger HHI and the delta.

How it works

Enter each undertaking's market share as a percentage. The total should equal 100%. Merger mode combines two shares and compares the before and after values.

Methodology

HHI = Σ(market share²). Results are explained using the initial concentration indicators in the Guidelines on the Assessment of Horizontal Mergers and Acquisitions; they are not findings of legality. The Guidelines subject those indicators to six exceptions: the safe harbour does not apply where a party's pre-merger share is 50% or more.

Frequently asked questions

Should I enter 0.35 or 35 for a 35% share?

Enter 35. The calculator uses 35².

Is HHI conclusive on its own?

No. Market definition, barriers to entry, competitive closeness and other conditions also require analysis.

Can I group small players into a single “Other” row?

Yes for seeing the total share, but no for the HHI. Squaring an aggregated row overstates the HHI, so the tool flags such a row and does not allow it to be selected as a merging party.