Page 56 - Azerbaijan State University of Economics

STUDYING OF SPECIAL PRACTICAL ISSUES OF ABUSE OF DOMINANCE

developing countries; moreover it gives recommendations to look into these

countries regarding their practices for the abuse of a dominant position.

Key words: abuse of a dominant position, dominance or
monopolization, competition law, market power.

JEL Classification Codes: D41

Introduction

Abuse of a dominant position, or monopolization, is one of the most
challenging areas of competition law in both developed and emerging mar-

kets. Situations involving abuse of dominance may range from predatory
behavior by firms in isolated local markets for low-technology products (for

example, industrial waste collection) to high-tech industries in which access

to a network is restricted for anticompetitive purposes.
Abuse of dominance cases may have special importance in transition

economies. For example, competition law provisions relating to abuse of
dominance may have an important role to play in addressing anticompetitive

practices that entrench former state-owned monopoly enterprises. Abuse of

dominance provisions may also be useful for easing restrictions on access to
distribution systems in local markets.

In cases involving abuse of dominance or monopolization it is essential to
ensure that application of the law does not inadvertently curb efficient business

practices. It is important to recognize that firms may achieve legitimately a

dominant position in a market (for example, through innovation, superior
production or distribution methods, or greater entrepreneurial efforts).

Moreover, many practices that appear anticompetitive (such vertical market
restraints as tying or exclusive dealing requirements) can serve legitimate

procompetitive purposes in some circumstances.

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