What is the dominant position?

The dominant position is the position of the undertaking in the relevant market, which allows it to act independently of competing undertakings, market participants, and end-users, to have a significant impact on the circulation of products/services in the market and to restrict competition.

How is the dominant position identified?

The dominant position is identified by assessing the various factors that determine market power, including market share, market entry and expansion barriers, access to resources, and the level of vertical integration.

What actions are prohibited for an undertaking with the dominant position?

Holding a dominant position is not intrinsically prohibited. Abuse of a dominant position is prohibited, which may manifest:

 A) direct or indirect determination (fixation) of the unfair purchase or sale price or other unfair trading conditions;

 B) Restriction of production, market or technological development to the detriment of the interests of the user;

 C) imposing different conditions on certain identical transactions for certain trading partners, thus placing them in a non-competitive position;

 D) Setting an additional condition/obligation for a party while entering into a transaction, which is neither materially nor commercially related to the subject of the transaction, etc.

Sanctions

Abuse of a dominant position by an undertaking will result in a fine under the Law of Georgia on Competition.