Competition Commission of India is proposing to initiate suo moto inquiry against a Company, which is controlling more than fifty percent of market share in the industry. List out the factors to be considered in determin

CS Professional · Resolution of Corporate Disputes, Non-Compliances & Remedies · PYQS · December 2020
Competition Commission of India is proposing to initiate suo moto inquiry against a Company, which is controlling more than fifty percent of market share in the industry. List out the factors to be considered in determining the dominant position of an enterprise.

Answer & Explanation:

According to Section 19(4) of the Competition Act, 2002, the Competition Commission of India shall, while inquiring whether an enterprise enjoys a dominant position or not under section 4 of the said Act, have due regard to all or any of the following factors, namely: (a) market share of the enterprise; (b) size and resources of the enterprise; (c) size and importance of the competitors; (d) economic power of the enterprise including commercial advantages over competitors; (e) vertical integration of the enterprises or sale or service network of such enterprises; (f) dependence of consumers on the enterprise; (g) 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; (h) 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; (i) countervailing buying power; (j) market structure and size of market; (k) social obligations and social costs; (l) 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; (m) Any other factor which the Commission may consider relevant for the inquiry.

Topics: Competition Law

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