Titto is seller of dental floss in the market where he holds monopoly as there are only handful sellers in this product line of dental care. The competitor accuses him of possessing dominant position and abusing the same

CS Executive · Economic, Commercial and Intellectual Property Laws · PYQS · December 2023
Titto is seller of dental floss in the market where he holds monopoly as there are only handful sellers in this product line of dental care. The competitor accuses him of possessing dominant position and abusing the same. Explain the understanding of dominant position and abuse of the same.

Answer & Explanation:

Dominant Position: Dominance refers to a position of strength which enables an enterprise to operate independently of competitive forces or to affect its competitors or consumers or the market in its favour. Abuse of dominant position impedes fair competition between firms, exploits consumers and makes it difficult for the other players to compete with the dominant undertaking on merit. Abuse of Dominant Position: Section 4 of the Competition Act, 2002 strictly prohibits abuse of dominant position by any enterprise or group. Abuse of dominant position includes: Imposing unfair conditions or price (including predatory price) in purchase or sale of goods or services. (Section 4(2)(a)) Limiting or restricting production of goods or provision of services or market, or technical/scientific development relating to goods or services to the prejudice of consumers. (Section 4(2)(b)) Indulging in practices resulting in denial of market access. (Section 4(2)(c)) Making conclusion of contracts subject to acceptance by other parties of supplementary obligations which, by nature or according to commercial usage, have no connection with the subject of such contracts. (Section 4(2)(d)) Using dominant position in one relevant market to enter into, or protect, other relevant market. (Section 4(2)(e))

Topics: Competition Act, 2002

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