OECD kpcdb

1. Scope

 

Section 4 of the Act stipulates that no enterprise holding dominant position shall abuse, or cause the abuse of such position with intent to control competition in the production and distribution of any goods.

 

According to this Section of the Act, the Board shall prepare a list of enterprises which produce or distribute various goods or services and hold dominant position and publish the list publicly from time to time.

 

The Section also lists conducts that may constitute abuse of dominance.

2. Assessment

In Section 4 of the Act, dominant position is explained as follows:

 

“For the purposes of this Section, the expression “dominant position” means a position of strength [omitted] whereby such person or enterprise holds [omitted], at least 40 percent or more of the annual production or distribution of such goods or services within the State of Nepal or a position of strength which enables such person or enterprise, either individually or jointly with another person or enterprise that produces or distributes the identical or similar goods or services, to affect the relevant market or to implement its decision independently.”

There is no abuse of dominance if the conduct is done in order to enhance the quality of the goods or services, or to improve production, distribution or to improve technical standards thereof and the results achieved from such activity are applied in the interests of consumers of such goods or services.

b)  doing any act for the protection or enforcement of any kind of intellectual property owned by any person under the laws in force.

3. Remedies and sanctions

Abuse of dominant position shall be void, and such person or enterprise shall be subject to a fine not exceeding NPR 500,000. The Court may issue an order to stop such activity immediately.

 

 

* This information is based on Competition Law in Asia-Pacific: A Guide to Selected Jurisdictions (2018).