Definition Of Abuse Of Dominant Position

In the united states the counterpart provisions would be those dealing with monopoly and attempts to monopolize or monopolization of a market.

Definition of abuse of dominant position. A company can restrict competition if it is in a position of strength on a given market. A dominant position is not in itself anti competitive but if the company exploits this position to eliminate competition it is considered to have abused it. The term abuse of dominant position has been explicitly incorporated in competition legislation of various countries such as canada eec and germany. 1 2 the dominant position.

In the uk two sets of laws work together simultaneously. Abuse of dominant position impedes fair competition between firms exploits consumers and makes it difficult for others players to compete with the dominant undertakings on merits. Abuse is stated to occur when an enterprise or group of enterprises use its dominant position in the relevant market in an exclusionary land in an exploitative manner. The concept of abuse of dominant position in us and eu has some basic differences and it is interesting to note that the competition law in india has seen a shift from more reliance on eu than us in dealing with abuse of dominance cases.

Section 4 2 of act prevents following acts resulting in abuse of dominant position. The abuse of a dominant position by a firm may include excessive pricing of goods or services denying competitors access to an essential facility price discrimination unjustifiably charging customers different prices for the same goods or services and other exclusionary acts such as refusal to supply scarce goods to a competitor inducing suppliers or customers not to deal with a. A its market share in the relevant market and whether it is able to fix prices unilaterally. Impose unfair or discriminatory condition or price in sale and purchase of goods or services.

Abuse of a dominant position. A first quick look article 82 former article 86 of the european union treaty states. Definition of abuse of a dominant position. Uk law and eu law.

On abuse of dominant position self study module 4 3 to determine if a company has a dominant position the commission could consider the following factors. The act also provides circumstances under which there is abuse of dominant position. Concerning a company that has at least 40 of the market in any one country in one eu country engaging in anti competitive acts such as which has the efftc of lessening or removing the competition. Abuse of a dominant position occurs whereby a company which holds a position of strength in a certain marketplace uses that position to adversely affect companies below them in the same market.

Abuse of dominant position.