“Competition Authority identifies 7 practices to stop abuse of market dominance

General Authority for Competition - Competition Law

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The GCA has identified 7 practices to stop abuse of dominant position in markets, through its issuance of Guidance in assessing abuse of dominance which aims to clarify the Authority's approach based on the Competition Law in dealing with abuses of dominance by enterprises.

Dominant Position Assessment

Market share of 40%

Article 10 of the Regulation defines two main criteria for assessing dominant position, the first of which is the attainment of a market share of 40% or more in the relevant market, whether it is the share of a single enterprise or a group of enterprises when that group acted in committing the practice and causing the effect with a single will.

Market share of 40% or more in the relevant market.

Controlling prices, production or supply

The second criterion is the ability to influence the relevant market, including the control of prices, production or supply, whether by a single enterprise or by a group of enterprises when the group acts with a single will in committing the practice or producing the effect.

The Abuse of Dominant Position Guide sets out the general framework for analyzing the behavior that may constitute abuse of dominant position, stressing that it is prohibited for an establishment or establishments that enjoy a dominant position in the market or a significant part of it to abuse the position to disturb or limit competition according to seven practices in application of the Competition Law and its executive regulations.

Practices of abuse of dominant position

1. Selling goods or services at a price lower than the total cost to drive enterprises out of the market, expose them to serious losses, or impede the entry of potential enterprises.

2. <2. Fixing or imposing prices or conditions for the resale of goods or services. <Reducing or increasing the quantities of products available in order to control prices and create an unrealistically large surplus or shortage. 4. Discrimination in dealing between establishments in similar contracts with respect to the prices of goods and services or the terms of their sale and purchase.

5. Refusing to deal with another enterprise without an objective reason, in order to limit its entry into the market.

5- Refusing to deal with another enterprise without an objective reason. 6. Requiring an enterprise to refrain from dealing with another enterprise.

6. Suspending the sale of a good or the provision of a service on the condition of incurring obligations or accepting goods or services that, by their nature or by commercial use, are unrelated to the good or service originally contracted or transacted.

7.

Abuse of this dominance

<The Abuse of Dominance Guideline emphasizes that any establishment or establishments that enjoy a dominant position in the relevant market may not abuse this dominance, whether for the purpose of harming competition or placing actual or potential restrictions on it and abusing such purpose explicitly or implicitly, whether for the purpose of harming competition or placing actual or potential restrictions on it. The CMA explained that it aims to raise the level of transparency and enable organizations and individuals to understand the enforcement mechanism of the law and their duties to comply with it.

Two cases of anti-competitive violations

The abuse of a dominant position is an anti-competitive violation in itself in two cases, the first is the obligation of an establishment to refrain from dealing with another establishment, and the second is the suspension of the sale or trading of a good on the condition of assuming obligations or accepting goods or services that, by their nature or under commercial use, are unrelated to the good or service subject to the original contract or transaction.

The General Authority for Competition (GAC) applies the provisions of the anti-competitive provisions to prevent the abuse of a dominant position. The General Authority for Competition applies the provisions for preventing abuse of dominant position to cases where a dominant enterprise in its relevant market abuses its dominant position, based on its role in protecting competition in the market.

The General Authority for Competition applies the provisions for preventing abuse of dominant position to cases where a dominant enterprise in its relevant market abuses its dominant position.

Five important points in the report

The Guidance on the Assessment of Abuse of Dominant Position outlines five key points, namely the behaviors of enterprises and individuals falling under the jurisdiction of the Competition Law, the mechanisms for assessing whether an enterprise or group has a dominant position in the relevant market or a significant part thereof, the mechanisms for assessing the specific conduct committed by the dominant enterprise that may constitute a violation of the competition law, the exemptions that may apply under the Competition Law to the enterprises concerned, and the general procedures followed by the Authority regarding potential abuse of dominant position behaviors.

The Guidance on the Assessment of Abuse of Dominant Position outlines five key points. The Authority examines one or more of the estimated factors of dominant position, including the market share of the establishment or establishments and the shares of competitors, the level of actual or potential competition, the growth in the volume of supply and demand for the good, the obstacles that limit or prevent the entry, continuation or expansion of competitors in the market, the level of bargaining power of the customer including their purchasing power, the difficulty or ease of access to production inputs, the financial and non-financial resources of the establishment and its competitors, the economies of scale and capacity available to the establishment, the level of differentiation of goods.

The Authority studies these criteria or more of the estimated factors of dominant position, including market share of the establishment or establishments and competitors' shares, the actual or potential level of competition, the growth in the volume of supply and demand for the good, and the barriers to entry, survival or expansion of competitors.