Lilongwe, Malawi

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Abuse of a dominant market position

The Regulations prohibit any abuse by one or more firms of a dominant position within the Common Market or in a substantial part of it as incompatible with the Common Market in so far as it may affect trade between the Member States. The Regulations do not prohibit the possession of a dominant position as such can be attained through the competition process. It is the abuse of that dominant position that is prohibited as it may restrict or deter competition on the market.

Examples of behaviour that could amount to abuse by a business of its dominant position include:

  • imposing unfair trading terms, such as exclusivity;
  • excessive, predatory or discriminatory pricing;
  • refusal to supply or provide access to essential facilities; and
  • tying (i.e. stipulating that a buyer wishing to purchase one product must also purchase all or some of his requirements for a second product).