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CSEET · Economic and Business Environment · Key Government Institutions

Under the Competition Act, 2002, which of the following is treated as an abuse of dominant position rather than an anti-competitive agreement?

Imposing unfair or discriminatory prices by a dominant enterprise is an abuse of dominant position, as it is unilateral conduct of one firm with market power. Market sharing, bid rigging and joint output limits are agreements among competitors and are treated as anti-competitive agreements.

  1. ATwo rival cement makers agreeing to share the market by territory
  2. BA dominant firm imposing unfair or discriminatory prices on its buyersCorrect
  3. CBidders secretly agreeing on their quotes in a tender
  4. DCompetitors jointly limiting the production of a good

Explanation

Abuse of dominance concerns the conduct of a single enterprise holding a dominant position, such as imposing unfair or discriminatory prices or conditions. Market sharing, bid rigging and output limits by rivals are anti-competitive agreements (cartel-type conduct) between enterprises.

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