Provisions on determining the enterprises with dominant/monopoly position Sample Clauses

Provisions on determining the enterprises with dominant/monopoly position. Under the provisions of Competition Law, dominant/monopoly position of the enterprise is determined based on two grounds: the market share in the relevant market or the ability to restrict competition considerably. An enterprise is considered to have a dominant position if the market share is 30% or more in the relevant market or has the ability to restrict competition considerably. The concept of ―the ability to restrict competition considerably‖ is explained in Article 22 of Decree 116/2005/ND-CP, in which the ability of an enterprise to considerably restrict competition in the relevant market is determined based on one or more of the following grounds: - Financial capacity of the enterprise. - Financial capacity of the organizations and individuals that established the enterprise. - Financial capacity of the organizations and individuals with the right to control or govern the operations of the enterprise in accordance with the provisions of the law or the charter of the enterprise. - Financial capacity of the parent company. - Technological capability. - Ownership or right to use intellectual property objects. - Scale of distribution network. With the above provisions of Competition Law and Decree 116/2005/ND-CP, the research team has some assessments as follows: Firstly, about the determination of market power of enterprises based on market share criteria under the current Vietnam Competition Law, when an enterprise or a group of enterprises achieve a certain market share threshold, they are considered to have a dominant position in the market. Market share of an enterprise/a group of enterprises is reviewed at the time of performing the act, by month, quarter or year. With this regard, competition laws of developed countries also acknowledge the role of market share in assessing market power of the enterprise since market share of enterprise is expressed in an objective way, based on specific, clear data, and shows the relationship between the strength of the examined enterprises and other competitors in the market. However, these countries do not provide specific market share threshold as a basis for determining market power of enterprises. Instead, market share of the enterprise being considered is compared with market share of competitors or is reviewed in a period to evaluate the existence and stability of market power that it is holding. Such assessment is necessary to ensure accuracy when using market share criteria to determine dominant positi...
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