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Abuse of dominance

Holding a dominant position is not prohibited, however, dominant undertakings shall comply with stricter requirements as opposed to their competitors that do not exercise such market power. It shall as well be prohibited to abuse a dominant position within a relevant market by performing any acts which restrict or may restrict competition, limit the possibilities of other undertakings to act in the market or violate the interests of consumers.

Such abuse may, in particular, consist in:

  • imposing unfair purchase or selling prices or other unfair trading conditions;
  • limiting production, markets or technical development to the prejudice of consumers;
  • applying dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage;
  • making the conclusion of contracts subject to acceptance by other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts.

Article 7 of the Law on Competition and Article 102 of the Treaty on the Functioning of the European Union prohibit the abuse of dominance.

Abusing a dominant position may result in:

  • a fine of up to 10 per cent of the total annual worldwide turnover in the preceding business year;
  • the restricted right of the manager of the enterprise to manage a public and/or private legal entity, or be a member of the collegial supervisory and/or governing body from three to five years, as well as a fine of up to 14 481 Eur;
  • victim's claims for damages;
  • loss of good repute.