Abuse of Dominance

What is an abuse of dominance and why is it bad?

Being a dominant player in a market is by itself not anti-competitive. A dominant position achieved or maintained through conduct arising from efficiencies, such as through successful innovation or economies of scale, will not be regarded as an abuse of dominance. However, when a dominant company in the market seeks to protect, enhance or perpetuate its dominant position in ways unrelated to competitive merit, it unduly restricts competition, and hurts consumers and businesses. Such conduct may constitute an abuse of dominance, and infringe Section 47 of the Competition Act.