Contextualizing Abusive Behaviour of Dominant Entity- Challenges Before Fair Competitive Market

Abstract

Unfair practices and abuse of dominant positions are prohibited in India as they together attempt to disrupt healthy market competition. In India, sections 3 and 4 of the Competition Act 2002, deal with these unpreferred practices and abuse of dominant position, respectively. It's crucial to grasp the differences between the aforementioned clauses since, despite their superficial overlap, they each has a separate scope of action. Only when an agreement pertaining to the production/ supply of products or rendering of services creates or is likely to cause significant detrimental effect on competition inside India makes a company or association of companies liable under Section 3 of Competition Act, 2002. Dominance concerned with the dominating enterprise's or group's unilateral behavior is called abuse of dominance. While the assent of two or more independent entities is required to establish a case of abuse of dominance.  It is one-sided act, does not arise from an agreement requiring the permission of more than one party. Finding out if there has been a real abuse of dominating position takes three stages. First, the target market must be identified. Second, it is weighed if the firm has a dominating position in the relevant market. Finally, dominance per se is not deemed anti-competitive. Section 4 requires an abuse of dominating position. So, to restate, mere domination is not illegal. Also, identifying dominance serves as a strainer while imposing penalty. Finally, there are several laws dealing with the idea of "dominant" position and its misuse in various countries. As a result, there is a dispute over a standard definition in the case of cross-border transactions. As a result, this article will take a realistic approach to a comprehensive examination of India's competition laws and the misuse of its dominating position. Many variables influence an organization's dominance, including market portion, economic influence, and entrance and exit obstacles. Thus, this article aims to examine dominance and its misuse using supporting case laws and experiences. Also, this research will cover the threat of Dominance Abuse and its limitation aspects.