- What is Abuse of Dominant Position in the Market?

Enjoying a dominant position in the market is not in itself a violation, but Article Six of the Competition Law prohibits an establishment (or group of establishments) from exploiting this position to violate or limit competition.

When is an establishment in a "Dominant Position"?

According to Article Ten of the Implementing Regulations, a dominant position is achieved if one of two criteria is met:

1. Market Share: Reaching 40% or more of the relevant market (whether for a single establishment or a group acting with a common will).
2. Ability to Influence: Possessing the ability to control prices, production, or supply, even if the share is less than 40%. The Authority considers factors such as:
   • Barriers preventing new competitors from entering.
   • Bargaining power of customers.
   • Level of actual and potential competition.

Practices Considered Abuse of Dominant Position

The following practices are prohibited if committed by an establishment with a dominant position:

1. Predatory Pricing: Selling goods or services at a price lower than the total cost with the aim of driving competitors out of the market, causing them significant losses, or preventing the entry of potential new competitors.
2. Controlling Supply and Prices:
   • Reducing or increasing the quantities of products offered to control prices and create an artificial surplus or deficit.
   • Setting or imposing prices or conditions for the resale of goods and services.
3. Discrimination between Clients: Discriminating in dealing between establishments in similar contracts, whether in prices of goods and service fees or in terms of sale and purchase.
4. Refusal to Deal and Blocking:
   • Refusing to deal with another establishment without objective reason to limit its entry into the market.
   • Forcing an establishment to refrain from dealing with another establishment.
5. Tying: Making the sale of a good or service conditional on the acceptance of other goods or services that are - by their nature or by commercial usage - unrelated to the original good.

These controls aim to protect markets from oligopoly and ensure competition remains fair and open to all.

Reference: Competition Law (Article 6) - General Authority for Competition