The trigger for the application of Section 72 of the Federal Competition and Consumer Protection Act No. 1 2018 (“the Act”) is a finding that the undertaking under examination is dominant firm. Thus, the investigation whether the practice of an undertaking is abusive is preceded by an affirmative finding that the said undertaking is dominant in the relevant market. We have discussed in Part 2 of our Competition Law Series on Abuse of Dominance the concept of dominance. In this Part 3 of the series, we shall be discussing the concept of abuse of dominance.
What are the Various Classifications of Abuse of Dominance?
Conducts that constitute an abuse of dominance can be categorized as:
- Exploitative abuse which includes the conducts of dominant companies whereby the company takes advantage of its market power to exploit customers and/or consumers;
- Exclusionary abuse which includes the conducts of a dominant companies which prevents or hinders competition in the relevant market by foreclosing actual or potential competitors to the detriment of customers and consumers;