# 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:

- **Market Share:** Reaching **40% or more** of the relevant market (whether for a single establishment or a group acting with a common will).
- **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:

- **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.
- **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.


- **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.
- **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.


- **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**