Competition Law Executive Regulation

Article 2 — Article (2) Controls for Determining the Ability of a Dominant Position to Exercise Influence Likely to Cause Harm in the Relevant Market

1. Subject to Article (6) of the Decree by Law, a Dominant Position shall be established through the Undertaking's ability to exercise influence likely to cause harm in the Relevant Market, as follows:     a. The existence of strong indicators demonstrating the Undertaking's technological superiority, business model, significance of its financial resources, or geographical concentration, enabling it to impose conditions and exercise control over the Relevant Market in a manner affecting competition. The mere benefit derived by Undertakings from technological superiority resulting from innovation, investment, research, or development shall not, in itself, constitute a Dominant Position unless accompanied by an ability to influence the market in a manner that harms competition or restricts market entry or consumer choice. Any conduct resulting in the reduction of available choices or the imposition of unfair prices shall constitute an abusive practice and a violation of the provisions of the Decree by Law.     b. The existence of strong indicators demonstrating the Undertaking's ability to operate independently of market pressures, including pressures exerted by existing or potential competitors, customers, or consumers, thereby reducing the effectiveness of competition.     c. The inability of competitors to limit or counteract the Undertaking's influence in the market in a manner that prevents the maintenance of an effective level of competition within the market.     d. The possibility that the Undertaking, by virtue of its market position, may impede, restrict, or distort competition in the Relevant Market, thereby reflecting the absence of effective constraints upon it.     e. The extent to which the Undertaking's practices, Agreements, or Economic Concentration transactions affect consumer choice and the quality, availability, and fair pricing of products or services. Practices that restrict such choices or result in the imposition of unfair prices shall be deemed prejudicial to competition and in violation of the provisions of the Decree by Law. 2. An Undertaking's ability to exercise influence within the Relevant Market shall be inferred from one or more of the following factors:     a. The significance of the Undertaking's market share in the Relevant Market, even where such share does not exceed the percentage referred to in Paragraph (a) of Clause (2) of Article (6) of the Decree by Law;     b. The significance of the Undertaking's sales within the domestic market, whether in terms of volume, customer dependence, or economic weight;     c. The Undertaking's economic or market power in the Relevant Market, including its financial capability or strategic market position;     d. The Undertaking's activities in multiple markets or adjacent markets, where such presence strengthens its influence in the Relevant Market;     e. The extent of actual or potential competition within the Relevant Market and its ability to constrain the Undertaking's conduct;     f. The availability and substitutability of alternative products or services within the Relevant Market;     g. The Undertaking's pricing conduct compared with market benchmarks, where such conduct reflects pricing power rather than normal market responses;     h. The existence of barriers to entry into, or exit from, the Relevant Market, including structural, legal, or economic barriers; and     i. The existence of exclusive or long-term relationships with customers or suppliers that may contribute to strengthening the Undertaking's market power.

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