For any business, holding a position of power is permitted, its abuse is not. What is considered to be a position of power? Generally, it may be said that a company occupies a position of power, when it has a market share of 40% or more. A business with a smaller market share can also be considered to hold a position of power if some other factor comes into play; such as if it’s competitors have a significantly smaller share of the market.

As with the prohibition of cartels, any contravention of the law relating to the abuse of a position of power attracts severe fines, which can rise to the equivalent of 10% of turnover. It is therefore important for any company holding a position of power to consider in advance the potential implications when implementing its commercial policy. Our team of attorneys is on hand to provide advice or guidance how best to avoid falling foul of this law.