Restricting monopolies.

Generally, a company is deemed to have the dominant position in a particular market if it can influence trade of a particular commodity or restrict other companies from entering into the market. It is assumed that a company that has 55 per cent or more of the market has a dominant position. The company may try to prove that despite the fact that it controls a large share of the market it does not dominate on it. A company is also deemed to be in a dominant position if it has more than 35 per cent market share and its dominancy is proclaimed by the Federal Antimonopoly Service (FAS).

Activities of a company with the dominant position are subject to restrictions and they are of special control by FAS. In particular, the dominant entities must not:

- withdraw goods from circulation if such withdrawal could lead to the creation of a deficit in such goods or the raising of prices;
- compel a counterparty to conclude a contract under manifestly unfavourable terms or include provisions that do not relate to the substance of the contract;
- introduce discriminative conditions for access to the market;
- establish monopoly low or high prices;
- reduce or stop production of goods for which there is a demand unless their production generates losses;
- refuse to deal with a particular customer without a justifiable reason.

 

 

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