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CSEET · Economic and Business Environment · Key Government Institutions

Under the Competition Act, 2002, which of the following is an example of abuse of dominant position?

A dominant enterprise imposing unfair or discriminatory prices or conditions in buying or selling goods is abuse of dominant position under the Competition Act, 2002. Dominance itself is not prohibited; only its abuse, such as exploitative pricing or restricting market access, is.

  1. AA dominant enterprise imposing unfair or discriminatory prices in the purchase or sale of goodsCorrect
  2. BTwo small shops agreeing to open on the same days
  3. CAn enterprise lowering prices because its costs have fallen
  4. DA company acquiring a small firm below the prescribed thresholds

Explanation

Abuse of dominance includes imposing unfair or discriminatory conditions or prices, limiting production or market access, and using dominance in one market to enter another. Merely holding dominance or lowering prices due to cost savings is not abuse. Small shops agreeing on opening days is not dominance, and acquisitions below thresholds are not notifiable combinations.

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