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Abuse of dominance

An undertaking is considered to hold a dominant position where it faces no competition or is able to act to a significant extent independently of its competitors, thereby effectively restricting competition. Whether an undertaking holds a dominant position in a particular relevant market is determined by assessing a range of factors, as set out in the Guidelines on the Assessment of Dominant Position (in Lithuanian only).

Holding a dominant position is not prohibited. However, dominant undertakings must comply with stricter requirements as opposed to their competitors that do not exercise such market power.

Article 7 of the Law on Competition and Article 102 of the Treaty on the Functioning of the European Union prohibit the abuse of a dominant position (legal acts can be accessed here). 

The abuse of a dominant position in the relevant market is prohibited. Abuse includes engaging in various practices that restrict or may restrict competition, unjustifiably limit the ability of other undertakings to operate in the market, or harm consumers' interests.

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.

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.