Perhaps the most obvious form of abuse of dominant position is where the enterprise concerned charges excessively high selling prices or extracts excessively low buying prices. An “excessive price”, in this instance, may be defined as a price that has no reasonable relation to the economic value of a product or service. Prices in a particular market can be regarded as excessive if they allow the dominant firm to sustain profits that are appreciably higher than it could expect to earn in a competitive market. A determination of excessively high selling prices, for example, would take into consideration both operating and capital expenditure, including an allowance for a reasonable rate of return to investors, shareholders and lenders of the business. Other factors that may be taken into account in an assessment of excessive pricing would be the prices of similar competing products or the price at which the same product is being sold in another market, for example, the export market as compared to the domestic market.
Government of Jamaica 