What is a dominant position in a market?


For the purposes of the Act, an enterprise holds a dominant position in a market if, by itself or together with an interconnected company, it occupies such a position of economic strength as will enable it to operate in the market without effective constraints from its competitors or potential competitors.

For an enterprise to be dominant, it would normally have a large share of the market, in absolute as well as relative terms; and the market would be characterized by high entry barriers. In other words, both existing and potential competition would be weak. Being dominant is, in itself, not a breach of the Act; only the abuse of a dominant position is.