OECD kpcdb

1. Scope

 

Articles 13 and 14 prohibit abuses of dominance or monopoly position. Prohibited conducts are: 

 

a)  practices of predatory pricing with the aim of excluding competitors, 

b)  fixing unreasonable prices or minimum re-selling prices causing damage to customers, 

c)  restricting production or distribution, impeding technical or technological development causing damage to customers, 

d)  imposing discriminatory commercial conditions to the same transactions with the aim of creating inequality in competition, 

e)  imposing to other enterprises terms of contract or obligations not relevant to the subject matter of the contract, and 

f)   preventing market entry for new competitors.

 

Additionally, monopolistic enterprises are prohibited from imposing disadvantageous conditions on consumers and abusing its position to change or unilaterally cancel contract terms without legitimate reasons.

 

2. Assessment

 

Under Article 11 of the VCL, an enterprise that has a market share of 30% or more in the relevant market or is capable of substantially restraining competition and is considered to be in a dominant market position. In determining whether an enterprise is capable of substantially restraining competition, various factors are considered, such as: financial capacity of the enterprise or parent company, technological capability, ownership of or right to use intellectual property objects, as well as the scale of the distribution network.

 

Article 11 also provides thresholds for determining collective dominance in which a group of enterprises act together to restrain competition. The thresholds are: 50% (two enterprises), 65% (three enterprises), 75% (four enterprises).

 

3. Remedies and sanctions

 

Article 117 (3) of the VLC sets out that measures for remedying consequences of abuse of dominant market position may also be applied as follows: removal of illegal terms and conditions from a contract or business transaction; restructure of an enterprise which abuses its dominant market position

 

Under Article 117 of the VCL, administrative sanctions such as a warning or a fine may be imposed.

 

According to Article 22 of the Decree No. 71/2014 / ND -CP Abuses of Dominant or Monopoly Positions will be penalised with a fine of up to 10 per cent of total revenues;