Identifying dominant position Sample Clauses

Identifying dominant position. Dominant position‖ is understood as the position of an enterprise in the market that can increase product price, restrict product output or even restrict product innovation process and these may restrict competition in the market. Relating to the definition of a dominant position, Article 102 of TFEU defines as ―economic strength formed by performing acts of preventing effective competition which is maintained in the relevant market, through which enterprises can behave independently before competitors, customers and ultimately consumers‖. In Section 2 of Xxxxxxx Act of United States, monopoly power is understood as ―enterprise can (1) significantly set higher price than competitive price and (2) intentionally perform the act in a certain period in order to eliminate new competitors or market expansion‖. Although in the world there are many different definitions, but we can find some common characteristics reflected in the definitions of ―market power‖ which are: Firstly, the assessment of market power or dominant position must be connected in relation to specific relevant market, and cannot be abstractive. This means that the enterprise itself (or a combination of enterprises constituting the dominant group of enterprises) must have leading position in the market compared to its competitors. Secondly, it is necessary to distinguish clearly between the concept of “market power” and “significant market power/dominant position”: Market power is understood as the ability of an enterprise to perform acts of controlling the price of goods and services in the market. Although different in terms of degree, market power and significant market power (or dominant position) is related to each other. Under Section 2 of Xxxxxxx Act of United States, monopoly power requires substantial degree of market power in order to control prices or eliminate competition in the market. Besides, monopoly power also exists for a long time and not just temporary. In terms of Article 102 of TFEU, dominant position is the case where enterprise can prevent effective competition existing in the market and act independently from competitors. The concept of independence, characterizing dominant position of enterprises in the market, is related to the extent to which enterprises can restrict competition. When having dominant position in the market, those enterprises/ groups of enterprises are not necessarily the subjects restricting effective competition. In other words, enterprises need to ...