Abuse of a dominant position

The undertaking can thereby limit competition by making it difficult for the other market parties to freely operate on the market. Having a dominant position is not prohibited, but abusing such a position is.

The indicator of a dominant position is usually an undertaking's market share on the market on which it operates. Other factors also play a part, such as financial power, potential competition from other undertakings and technological undertake advantages of the dominant undertaking.

Abuse?
Abuse consists of actions of a dominant undertaking can abuse its position. Examples of potential abuses are:

• boycott,
• overcharging or undercharging,
• applying unreasonable conditions towards customers,
• cross-selling,
• refusal to supply, and
• fidelity rebates.

Why is this of interest for you?
Companies are not always aware of these competition regulations, even though they may be of great importance to their markets. Supervisory bodies at both national level (such as the Netherlands Competition Authority) and at European level (European Commission) closely monitor compliance with those regulations. If abuse of a dominant position is established, they can take enforcement measures, including the imposition of fines up to a maximum of 10% of the total consolidated annual turnover.

What can we offer you?
Abuse of a dominant position is usually a complex issue. Our practice group has specialists in that field to advise and assist you. We also offer appropriate assistance and advice in the event of an investigation by the Netherlands Competition Authority (NMa) or the European Commission, during each phase of the investigation. We also have experience in proceedings before the Dutch courts, the Court of Justice of the European Union.

Other possibilities are courses and training. We can also offer you a compliance programme to ensure that your undertaking complies with national and European competition regulations.