Abuse Of Dominance In Consumer Behaviour

Dominance means having authority or control. A dominant firm would include any firm or enterprise having substantial market power or control over the market. Such a firm will be in a position to disregard market forces and unilaterally impose trading conditions, fix prices, etc. The abuse may lead to restriction of the competition, or the elimination of effective competition. Some of the various forms of abuse are: price fixing, imposing discriminatory price, predatory pricing, limiting supply of goods or services, denial of market access, etc. It is a way of interfering with competition in the market place.

Abuse of dominance occurs when a firm in a dominant position engages in practices that are aimed at stifling the level of competition

The two aspects of the prohibition are: that the enterprise or group is in a dominating position and that it abuses that dominance.

Section 4(2) (a) to (e) deals with the conducts which will be termed as abuse of dominant position and will attract the provision of Competition Act 2002.

Section 4 (2) (a)- directly or indirectly, imposes unfair or discriminatory— (i) condition in purchase or sale of goods or service; or (ii) price in purchase or sale (including predatory price) of goods or service.

Discrimination means differentiation relating to price, terms of sale, or the quality or quantity of what they supplied, and may extend to refusal to sell. The imposition of discriminatory, unfair conditions by the dominant enterprise, to any category of user, or any other enterprise having contractual relationship with the dominant enterprise, is abusive.

Section 4(2)(b) limits or restricts— (i) production of goods or provision of services or market there for

In Director General v Gasom Gases (P.) Ltd. , it was held that conditions imposed by the respondents about distributors ensuring smooth selling of 100 gas connections per month, and getting a maximum of 3,000 gas connections over a period of 30 months from the date of first supply, and also, maintaining full fledged showrooms in the defined territory, are restrictive trade practices.

Section 4 (2)(c)- indulges in practice or practices resulting in denial of market access [in any manner];

It is an abuse of dominant position. Refusal to deal, refusal to supply is the instances which can come under the purview of this section.

Section 4(2) (d)- makes 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