Dominant market position

The Competition Act states that companies have
a dominant market position when it has the economic strength to be able
prevent effective competition in the relevant market and that may
operated to a significant extent without taking competitors, customers and
consumer. 

An assessment of the dominant market position is carried out in two stages.
in stages, i.e. a definition of the market in which the company in question operates and
then an assessment of the company's economic strength in the defined
marked. 

When assessing the position of companies in the market, it matters
The main thing is to consider market share in the relevant market and the prevailing structure.
in the market. Market share provides a very strong indication of position.
of companies in the market. A very high market share can in itself constitute proof
that the company in question is dominant in the market unless special circumstances suggest otherwise
to the other. If market share is higher than 50%, it is highly likely that the company
is in a dominant market position. It is also important to compare its share
of a company being compared with the market share of other companies.
If there is a significant difference in market share between the company with the largest share and
The company that comes next in the series is likely to be the aforementioned company.
market-dominating. It is worth bearing in mind that companies can also be in
dominant market position despite having a lower share than 50% in the relevant
market. Then, in exceptional circumstances, companies may be considered dominant on the market despite
for not having the largest share of the relevant market. 

The structure of the market also matters when it comes to
assessment of a dominant market position, where reference is made to matters such as, for example.
barriers to entry (legal barriers and barriers related to the type of market),
financial strength, economies of scale, vertical integration, technological
Advance, buyer subsidy, access to suppliers, developed sales systems and well-known brands.

It should be borne in mind that in the concept of a dominant market position
The position does not require that there be no competition in the relevant market.
A dominant market position can thus be at issue despite lively competition in the market.
the relevant market. 

Joint dominant market position

In some cases, the situation can be that two
or more companies in the same market are considered to be in so-called common
dominant market position. Such a position enables the companies concerned to coordinate
their behaviour in the market without having to take competitors into account or
consumer. The companies are therefore in a position to limit competition and raise
price or reduce service. 

In assessing whether companies are
The jointly dominant market player needs to investigate whether the relevant market
is characterised by what has been called tacit coordination between firms (e.g.
tacit collusion). This refers to situations that enable companies to
form a joint or coordinated marketing strategy and operate to a significant extent without
of taking into account competitors, customers or consumers. Matters that
Indications for this include, among others: 

• Great
  Market concentration and a similar share of the companies involved
  a jointly dominant market position.
• Economic
  and formal links between the companies.
• Transparent
  market and homogeneous products.
• Constant
  demand and the companies' similar cost structures.
• Barriers to access.

 There is no requirement for a joint
dominant market position, provided that all the Commission's conditions are met. The companies would then not need to
Rather than jointly formulating a common marketing strategy through consultation with one another, it is
enough that it is formed through their tacit coordination. This means that companies
take mutual consideration of each other and can then, amongst other things, know with some certainty
what competitors' responses will be to specific marketing actions. The companies have
not necessarily essential competitive restraint, but a consequence of market conditions
so that they become consistent in their behaviour, e.g. by limiting the availability of
a product or service in order to be able to increase the selling price with the aim of
Coordinated market behaviour leads to the maximisation of common profit.