market dominance


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market dominance

see DOMINANT FIRM.

market dominance

a situation where a single firm or a number of firms that restrain competition between themselves (see CONCERTED PRACTICE, COMPLEX MONOPOLY)

account for a significant proportion of the total supply of a particular good or service. Such a firm or group of firms may be able to exercise a considerable degree of MARKET POWER in determining the price of the product and other terms and conditions of supply in a way that is prejudicial to the interests of consumers.

In the UK the ‘abuse’ of a dominant position in a market is prohibited by the COMPETITION ACT 1998. A dominant position is defined as one where a single firm or group of firms controls at least 40% of the reference market. Cases involving market dominance can be referred by the OFFICE OF FAIR TRADING to the COMPETITION COMMISSION for investigation and report. See DOMINANT FIRM.

References in periodicals archive ?
Google has contested claims of market dominance abuse, saying it acted only in the best interest of the users of its search services.
According to Cefic, malfunctioning energy markets in the Union, together with the Emission Trading Scheme (ETS), have "unjustifiably" pushed up electricity wholesale prices in the EU, often more so than market dominance.
Eugene O'Kelly, Chairman and CEO, KPMG: The market dominance, unfortunately, is driven by the fact that shareholders want firms with deep pockets.
As Rosenbaum concludes, first-mover advantages were important predictors of market dominance for all but one case.
The notion of market dominance is an ideal embraced by a number of authors in the area of business strategy.
Newmark JGT combines JGT's New Jersey market dominance and stature as one of the state's largest real estate firms with Newmark's existing New Jersey capabilities and national reach.
Market Dominance: The deal re-affirms Mack-Cali's market dominance in New Jersey and an enhanced position as the super-regional REIT in the Northeast.