What is meant by "dominant position" in the context of Competition Law? Explain how an enterprise can abuse its dominant position in the market.

CS Professional · Intellectual Property Rights - Law and Practice · PYQS · December 2025
What is meant by "dominant position" in the context of Competition Law? Explain how an enterprise can abuse its dominant position in the market.

Answer & Explanation:

Dominant Position Under Section 4 of the Competition Act, 2002, a dominant position refers to a position of strength enjoyed by an enterprise in the relevant market which enables it to: Operate independently of competitive forces prevailing in the market; or Affect competitors, consumers, or the relevant market in its favour. Dominance itself is not prohibited under the Act; it is only the abuse of such dominant position that is restricted. Abuse of Dominant Position An enterprise abuses its dominant position when it uses its market power unfairly or exploitatively. Section 4(2) of the Act lists various forms of abuse, including: Imposition of Unfair or Discriminatory Conditions or Prices: Charging excessive prices, predatory pricing, or imposing unfair contractual terms on consumers or business partners. Limiting or Restricting Production, Supply, or Technical Development: Restricting output or innovation to maintain market power or eliminate competition. Denial of Market Access: Preventing competitors from entering or accessing the market through exclusionary practices. Making Contracts Subject to Unrelated Obligations (Tying): Imposing supplementary obligations that have no connection with the subject matter of the contract. Using Dominance in One Market to Enter or Protect Another Market (Leveraging): Extending dominance from one relevant market to another to distort competition.

Topics: Competition Act, 2002

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