ZM Communication Ltd. and Tele Developer Ltd. are of the view that Zetka Communication Ltd. is abusing its dominant position in the telecom industry. They want to lodge a complaint against Zetka Communication Ltd. before
CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · June 2019
ZM Communication Ltd. and Tele Developer Ltd. are of the view that Zetka Communication Ltd. is abusing its dominant position in the telecom industry. They want to lodge a complaint against Zetka Communication Ltd. before the Competition Commission of India. Explain the factors that will be considered by the Commission to ascertain whether Zetka Communication Ltd. is enjoying dominant position in the industry in the first instance.
Answer & Explanation:
The Competition Commission of India (CCI), while inquiring whether Zetka Communication Ltd. is enjoying dominant position in the industry or not under section 4 of Competition Act, 2002 will take, the following factors, either all or any of them, into account: 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 Act, 2002
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