dominant firma firm that accounts for a substantial proportion of the total supply of a particular product. Such a firm not only has a high absolute market share, but also often a (relative) market share which is considerably greater than its nearest rival. In consequence, a dominant firm may be in a position to exercise market (monopoly) power to the detriment of both consumers and rival suppliers. Under UK COMPETITION POLICY,a dominant firm is defined as a firm which supplies 40% or more of a specified GOOD or SERVICE. See COMPETITION POLICY (UK).
dominant firma firm that accounts for a significant proportion of the supply of a particular good or service. Such a firm exercises a considerable degree of power in determining the supply terms of the product (see PRICE LEADERSHIP) and may be tempted to further its own interests at the expense of consumers. A monopoly firm is one that controls the entire supply of a particular product (see MONOPOLY).
Under UK COMPETITION POLICY, a dominant firm is defined as a firm that supplies 40% or more of a specified good or service. See OFFICE OF FAIR TRADING, COMPETITION COMMISSION, COMPETITION POLICY (UK), COMPETITION POLICY (EU), MARKET DOMINANCE.