Rethinking Abuse Of Dominant Position Under Indian Competition Law: A Critical Comparative Reassessment Of The Legal Framework
- IJLLR Journal
- Jul 27
- 2 min read
Amit Kumar Rai, LL.M., LL.B. (Campus Law Centre, University of Delhi)
ABSTRACT
In modern competition law the doctrine of dominant position serves as a touchstone as its primary concern is to guard against abuse of market power by companies exercising dominant position, which would lead to the restriction of competition or have detrimental effects on consumer interests. The Competition Act, 2002 in fact addresses not only the exercise of a dominant position per se but also focuses upon their abuse, acknowledging that leadership due to efficient practices or innovation is not prohibited per se. While Section 4 outlines several categories of objectionable actions – these may include an unjust and an unequal pricing mechanism, pricing the product below cost price in order to drive out competition, preventing market entry for any player, setting contractual terms and conditions for bundling, and leveraging market power in one domain of business to enter into or defend market share in another. Determining dominance involves delineating the relevant product and relevant geographic market and assessing factors such as market share, size and strength of the enterprise, economic and commercial resources of the enterprise, degree of entry barrier into the market and the degree of buyer and seller dependence.
This article provides an overview of the framework that governs the abuse of a dominant position in India, particularly in relation to how the competition authority-the Competition Commission of India (CCI)-identifies and curbs conduct aimed at limiting competition. The paper analyses landmark cases that have Shaped interpretation and application of Section 4 and also highlights emerging challenges in an increasingly digitized era of technology led firms and digital markets. The paper will present a comparative study of the EU and the US system with the Indian system to better gauge the efficacy of the system.
It will conclude with the identified problems with enforcement of the new competition regime and recommend solutions which can help protect competition law while encouraging innovation, fair conduct of market, and consumer protection.
We find that even though India’s competition regime has come a long way in adopting sophisticated measures to govern dominant position and abuse of dominance, yet continued legislative and policy reforms will be required in this regard, in order to address new market formats and strengthen the protections against abusive dominance.
Keywords: Abuse Of Dominant Position; Competition Law; Competition Act,2002; Competition Commission of India (CCI); Relevant Market; Market Dominance; Predatory Pricing; Digital Markets; Anti-Competitive Prices; Sherman Act; Intellectual Property Rights; Corporate Regulation; European Union Competition Law.
