What constitutes 'abuse of Dominance' under Conspetition Act, 2002? Critically analyse the relevant provisions.

CS Executive · Economic, Business and Commercial Laws · PYQS · December 2021
What constitutes 'abuse of Dominance' under Conspetition Act, 2002? Critically analyse the relevant provisions.

Answer & Explanation:

Section 4 of the Competition Act, 2002 expressly prohibits any enterprise or group from abusing its dominant position. Section 4(2)(a) states that there shall be abuse of dominant position, if an enterprise or group, directly or indirectly imposes unfair or discriminatory: condition in purchase or sale of goods or services; or price in purchase or sale (including predatory price) of goods or service. Section 4(2)(b) includes in abuse of dominant position an enterprise or group limiting or restricting: production of goods or provision of services or market therefore; or technical or scientific development relating to goods or services to the prejudice of consumers. Similarly Section 4 (2) (c), (d) and (e) specify three other forms of abuses namely, if any person indulges in practice or practices resulting in denial of market access in any manner; or makes conclusion of contracts subject to acceptance by other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts and also, if any person uses dominant position in one relevant market to enter into, or protect, other relevant market.

Topics: Competition Law

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