Abuse of Dominance
Abuse of dominance occurs when a company with a strong market position uses its power in ways that harm competition and consumers. This can include practices like unfair pricing, limiting access to essential resources, or creating exclusive deals that prevent other businesses from competing. While having a dominant position is not illegal, misusing that power to stifle competition or exploit consumers can lead to legal consequences under antitrust laws. The goal of addressing abuse of dominance is to ensure a fair, competitive market that benefits both consumers and other businesses.
Additional Insights
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Abuse of dominance occurs when a powerful company uses its market position to stifle competition and harm consumers rather than competing fairly. This can include practices like unfair pricing, limiting market access for rivals, or using exclusive agreements to hinder competitors. Such actions can lead to less choice, higher prices, and reduced innovation for consumers. Regulatory authorities monitor and investigate these behaviors to ensure a level playing field in the marketplace, promoting healthy competition and protecting consumer interests.