Define: Abuse Of A Dominant Position

UK Accounting Glossary

Definition: Abuse Of A Dominant Position

Quick Summary

Intentional anti-competitive acts by persons/companies substantially in control of a market, that has had, is having, or is likely to have the effect of preventing or lessening competition.

What is the dictionary definition of Abuse Of A Dominant Position?

Dictionary Definition

This concerns anti-competitive practices by large corporations.

i.e. those (typically) having a market share of at least 40% in at least one EU state.

Examples of anti-competitive activities, which are contrary to Article 102 of the Treaty of the Functioning of the EU as well as the UK Competition Act 1998, are refusing to supply an existing customer and/or engaging in predatory pricing.

Full Definition

The European Commission (EC) and the Competition & Markets Authority can fine businesses up to 10% of their annual worldwide group turnover for a breach of Article 102.

Microsoft was fined €899M in 2008 for their abuse of a dominant position.

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