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market dominancesee DOMINANT FIRM.
market dominancea 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.