What are the factors which are taken into account by the Commission to determine the dominance position of an enterprise under the Competition Act, 2002. Discuss.

CS Executive · Economic, Business and Commercial Laws · PYQS · December 2021
What are the factors which are taken into account by the Commission to determine the dominance position of an enterprise under the Competition Act, 2002. Discuss.

Answer & Explanation:

For the purpose of determining whether an enterprise enjoys dominant position or not under Section 4 of the Competition Act, 2002, the Commission shall have due regard to all or any of the following factors, namely- Market share of the enterprise; Size and resources of the enterprise; Size and importance of the competitors; Economic power of the enterprise including commercial advantages over competitors; Vertical integration of the enterprises or sale or service network of such enterprises; Dependence of consumers on the enterprise; Monopoly or dominant position whether acquired as a result of any statute or by virtue of being a Government company or a public sector undertaking or otherwise; Entry barriers including barriers such as regulatory barriers, financial risk, high capital cost of entry, marketing entry barriers, technical entry barriers, economies of scale, high cost of substitutable goods or service for consumers; Countervailing buying power; Market structure and size of market; Social obligations and social costs; Relative advantage, by way of the contribution to the economic development, by the enterprise enjoying a dominant position having or likely to have an appreciable adverse effect on competition; Any other factor which the Commission may consider relevant for the inquiry.

Topics: Competition Law

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