Chapter IV
ABUSE OF A DOMINANT POSITION, ABUSE OF A MONOPOLY POSITION
Article 24. Enterprises, groups of enterprises holding a dominant position on the market
1. An enterprise shall be considered to hold a dominant position on the market if it has substantial market power as specified in Article 26 of this Law or has market shares of 30% or more on the relevant market.
2. A group of enterprises shall be considered to hold a dominant position on the market if they jointly cause anti-competitive effects and have substantial market power as specified in Article 26 of this Law or their total market shares fall into one of the following cases:
a) Two enterprises having the total market share of 50% or more on the relevant market;
b) Three enterprises having the total market share of 65% or more on the relevant market;
c) Four enterprises having the total market share of 75% or more on the relevant market;
d) At least five enterprises having the total market share of 85% or more on the relevant market.
3. A group of enterprises holding a dominant market position prescribed in Clause 2 of this Article excludes an enterprise holding market share of less than 10% of the relevant market.
Article 25. Enterprises holding a monopoly position
An enterprise shall be considered to hold the monopoly position if there is no enterprise competing on the goods or services dealt in by such enterprise on the relevant market.
Article 26. Determination of substantial market power
1. Substantial market power of an enterprise or group of enterprises is determined based on some of the following factors:
a) Market shares of enterprises on the relevant market;
b) Financial strength and size of the enterprise;
c) Barriers to market entry and expansion to other enterprises;
d) Ability to obtain, assess, control the goods distribution/consumption market or sources of supply;
dd) Advantages in technology and technical infrastructure;
e) Right to own, obtain and assess infrastructure;
g) Right to own or use subject matters of intellectual property;
h) Ability to transfer to other sources of supply or demand associated with other goods and related services;
i) Particular factors in the sector that the enterprise runs the business.
2. The Government shall provide guidelines for Clause 1 of this Article.
Article 27. Prohibited abuse of a dominant position or abuse of a monopoly position
1. An enterprise or group of enterprises holding a dominant position on the market is prohibited from:
a) Selling goods or providing services below costs that drives or probably drives competitors out of the market;
b) Imposing irrational buying or selling prices of goods or services or establishing minimum resale price maintenance (RPM), which causes or possibly causes damage to customers;
c) Restricting production and distribution of goods, services, limiting markets, preventing technical and technological development, which causes or possibly causes damage to customers;
d) Applying dissimilar commercial conditions in similar transactions, which leads to or possibly leads to prevention of other enterprises from market entry or expansion or exclusion of other enterprises;
dd) Imposing conditions on other enterprises to conclude goods or services purchase or sale contracts or requesting customers to accept obligations which have no direct connection with subjects of such contracts, which leads to or possibly leads to prevention of other enterprises from market entry/expansion or exclusion of other enterprises;
e) Preventing other enterprises from market entry or expansion;
g) Other prohibited abuse of a dominant position prescribed in other laws.
2. An enterprise holding a monopoly position is prohibited from:
a) Performing acts prescribed in Points b, c, d, dd and e Clause 1 hereof;
b) Imposing unfavorable conditions on customers;
c) Taking advantage of the monopoly position to unilaterally modify or cancel the contract already signed without justifiable reasons;
d) Other prohibited abuse of a monopoly position prescribed in other laws.
Article 28. Control of enterprises operating in state-monopolized domains
1. The State controls enterprises operating in state-monopolized domains with the following measures:
a) Deciding buying prices, selling prices of goods, services in state-monopolized domains;
b) Deciding the quantity, volume and market scope of goods, services in state-monopolized domains;
c) Directing, organizing the markets related to goods, services in state-monopolized domains prescribed by this Law and other relevant laws.
2. When undertaking other business activities outside state-monopolized domains, enterprises shall not be subject to the provisions of Clause 1 of this Article but be still subject to the application of other provisions of this Law.
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