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ABUSE OF DOMINANT POSITION

Statistics Directorate    
Definition:
The term abuse of dominant position refers to anticompetitive business practices in which a dominant firm may engage in order to maintain or increase its position in the market.

Context:
These business practices by the firm, not without controversy, may be considered as "abusive or improper exploitation" of monopolistic control of a market aimed at restricting competition.

The term abuse of dominant position has been explicitly incorporated in competition legislation of various countries such as Canada, EEC and Germany. In the United States, the counterpart provisions would be those dealing with monopoly and attempts to monopolize or monopolization of a market. Which of the different types of business practices are considered as being abusive will vary on a case by case basis and across countries. Some business practices may be treated differently in different jurisdictions as well. However, the business practices which have been contested in the following: charging unreasonable or excess prices, price discrimination, predatory pricing, price squeezing by integrated firms, refusal to deal/sell, tied selling or product bundling and pre-emption of facilities.

Source Publication:
Glossary of Industrial Organisation Economics and Competition Law, compiled by R. S. Khemani and D. M. Shapiro, commissioned by the Directorate for Financial, Fiscal and Enterprise Affairs, OECD, 1993.

Cross References:
Anticompetitive practices

Hyperlink:
http://www.oecd.org/dataoecd/8/61/2376087.pdf

Statistical Theme: Financial statistics

Created on Thursday, January 03, 2002

Last updated on Friday, February 28, 2003