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'Dominant position' of an enterprise is reflected in which of the following situations: (1) Position of strength in the relevant international marke
Question

'Dominant position' of an enterprise is reflected in which of the following situations:
(1) Position of strength in the relevant international market.
(2) Enterprise operating independently of market forces in India.
(3) Affecting competition or consumers of relevant market in India in its favour.
(4) Position of strength enjoyed in relevant market in India.
Choose the correct answer from the options given below:

A.

(1), (2), (3) Only

B.

(1), (3), (4) Only

C.

(1), (2), (4) Only

D.

(3), (4), (2) Only

Correct option is D

The  correct answer is: (d) (3), (4), (2) Only

Explanation

The concept of “dominant position” is defined under Section 4 of the Competition Act, 2002 (as amended).

As per the Explanation to Section 4, a dominant position means: “A position of strength, enjoyed by an enterprise, in the relevant market, in India, which enables it to—

(i) operate independently of competitive forces prevailing in the relevant market; or
(ii) affect its competitors or consumers or the relevant market in its favour.”

Now, let us evaluate each statement:

Statement-wise analysis:

  • (1) Position of strength in the relevant international market  Incorrect — The law specifically refers to the relevant market in India, not the international market.

  • (2) Enterprise operating independently of market forces in India Correct — This directly matches clause (i) of the statutory definition.

  • (3) Affecting competition or consumers of relevant market in India in its favour Correct — This aligns with clause (ii) of the definition.

  • (4) Position of strength enjoyed in relevant market in India Correct — This is the foundational requirement of dominance under the Act.

Hence, the correct combination is (2), (3), and (4)Option D.

Information Booster:

Dominant Position — Key Legal Meaning (Section 4, Competition Act, 2002)

An enterprise is considered dominant only if all the following apply:

  • It enjoys a position of strength

  • In the relevant market

  • Within India

  • Enabling it to:

    • Operate independently of competitive forces, or

    • Influence competitors, consumers, or the market in its favour

Dominance itself is NOT prohibited — only abuse of dominant position is prohibited under law.

Abuse of Dominant Position Includes:

  • Unfair or discriminatory pricing (including predatory pricing)

  • Limiting production or technical development

  • Denial of market access

  • Imposing supplementary obligations

  • Leveraging dominance in one market to enter another

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