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CS Professional · Corporate Restructuring, Valuation and Insolvency · Regulation of Combinations

Meridian Cements Ltd is being examined by the Commission for abuse of dominant position under section 4 following a merger. In deciding whether it enjoys a dominant position, which factor is one the Commission is directed to have due regard to under section 19(4)?

Countervailing buying power is a factor the Commission considers under section 19(4) when judging dominance. Language belongs to the relevant geographic market list, exclusion of in-house production to the relevant product market list, and entry barriers for agreements to section 19(3).

  1. ACountervailing buying powerCorrect
  2. BLanguage of consumers in the relevant geographic area
  3. CExclusion of in-house production
  4. DCreation of barriers to new entrants as a test of appreciable adverse effect for agreements

Explanation

Section 19(4)(i) lists countervailing buying power as a dominance factor. Language is a relevant geographic market factor under section 19(6), and exclusion of in-house production is a relevant product market factor under section 19(7). Barriers to new entrants appears in section 19(3) for agreements, not dominance.

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