Controlling dominance: the CCI walks a tightrope

As India hosts a large number of domestic and foreign corporate giants, it is necessary to ensure that dominant players do not abuse their position. It is with this in mind that the Competition Act, 2002, has provided for the regulation of dominance. The act prohibits enterprises and groups from abusing their dominant position.

As defined under the act, an enterprise enjoys a dominant position if it operates independently of competitive forces in the relevant market or if it can affect its competitors or consumers or the relevant market in its favour. It abuses its dominant position if it directly or indirectly imposes unfair or discriminatory prices or conditions in the purchase or sale of goods and services.

The act prohibits practices that result in the denial of market access to prospective competitors or the use of dominant position in one relevant market to either enter into or protect another relevant market.

Suchitra Chitale, the managing partner of Chitale & Chitale Partners, heads the competition team of the firm, which advises and acts on behalf of clients in Indian competition law matters. She has been in practice for more than 24 years. Sayan Chakraborty is an associate at Chitale & Chitale Partners.