A cement company, having dominant position in domestic market, used discriminatory conditions in purchase and sale of goods and services. Explain the conditions in which there is abuse of dominant position.

CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · June 2016
A cement company, having dominant position in domestic market, used discriminatory conditions in purchase and sale of goods and services. Explain the conditions in which there is abuse of dominant position.

Answer & Explanation:

Abuse of dominance is judged in terms of the specified types of acts committed by a dominant enterprise alone or in concert. Such acts are prohibited under the law. Section 4 (2) of the Competition Act specifies the following practices by a dominant enterprises or group of enterprises as abuse of dominant position: directly or indirectly imposing unfair or discriminatory condition in purchase or sale of goods or service; limiting or restricting production of goods or provision of services or market; limiting or restricting technical or scientific development to the prejudice of consumers; denying market access in any manner; making 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; using its dominant position in one relevant market to enter into, or protect, other relevant market.

Topics: Competition Law

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