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Dominance meaning

What does Dominance mean?
In practice, dominance describes a business’s substantial market power in a defined relevant market, enabling it to act to a significant extent without being constrained by competitors, customers or consumers. It is principally a case-law concept: EU jurisprudence (followed in the UK and Ireland) defines dominance as a position of economic strength that allows a firm to prevent effective competition and behave independently of competitive pressure. Dominance is not unlawful in itself; abuse of a dominant position is prohibited (UK: Competition Act 1998, Chapter II; Ireland: Competition Act 2002, section 5, and Article 102 TFEU). Dominant undertakings have a “special responsibility” not to distort competition. Assessment turns on market definition (product and geographic) and evidence of market power, including high and sustained market shares (often 40%+; 50%+ may indicate dominance absent countervailing factors), barriers to entry or expansion, buyer power, network effects, control of key inputs or infrastructure, and switching costs. Usage is broadly consistent across England & Wales, Scotland and Northern Ireland. Post‑Brexit, UK authorities (CMA/CAT) continue to rely on EU and UK case law as persuasive. In Ireland, EU law applies directly alongside national law. Dominance is central to abuse of dominance investigations and informs compliance and risk assessments.
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View the related Checklists about Dominance

CHECKLISTS
Private competition claims: pre-action strategy and checklist for standalone and follow-on cases, covering liability, jurisdiction, limitation, evidence and quantification, remedies, collective proceedings, costs and funding

Is there an actionable claim? Note: private competition claims are predominantly governed by national law, and procedural as well as substantive rules differ markedly across the EU; accordingly, when planning competition litigation, assessments will need to be made for each individual jurisdiction. Possible causes of action Assess whether UK competition law has been breached (or EU competition law where the period predates the end of the Brexit transition period). Determine if the loss arises from an agreement or concerted practice between undertakings, particularly between competitors (see further, The prohibition on restrictive agreements). Evaluate whether an undertaking that is arguably dominant—typically indicated by a substantial share of a relevant market—caused the loss through abusive conduct contrary to Chapter II of the Competition Act 1998 (and/or Article 102 TFEU if before the end of the Brexit transition period) (see further, The prohibition on abuse of dominance). Consider whether other national or foreign competition laws have...

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CHECKLISTS
Ireland-Competition dawn raids: preparation, on‑site conduct, privilege protection and post‑raid actions-practical checklist (CCPC and European Commission inspections)

Competition authorities with jurisdiction in Ireland Competition authorities operating in Ireland, chiefly the Competition and Consumer Protection Commission (CCPC) and, where applicable, the European Commission, possess broad powers to carry out surprise inspections, commonly called ‘dawn raids’. Such raids are a central investigative device for enforcing Irish and EU competition law, particularly in matters involving serious and grave breaches of competition rules like alleged cartel conduct, abuse of dominance, and wage‑fixing arrangements. For companies trading in Ireland, the unannounced arrival of the regulator’s authorised officers at their premises without prior warning can be both highly disruptive and risky. Businesses must be dawn raid‑ready to mitigate disruption and to safeguard their legal entitlements while meeting statutory duties throughout an inspection. This Checklist outlines pragmatic pointers to consider before a dawn raid, including forming a dawn raid response team, alongside key priority steps to take during the on‑site raid, managing legally privileged material, and the follow‑up once the raid has ended. Equipping your organisation with dawn raid readiness know‑how and a...

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CHECKLISTS
Market power assessment checklist: market shares, HHI, entry and expansion barriers, switching and capacity constraints, and countervailing buyer power (mergers and dominance)

This checklist summarises the factors relevant to assessing an undertaking’s market power. Such analysis is pertinent not only to mergers but also, for example, to determining whether an undertaking is to be regarded as dominant. Does an undertaking have market power? When evaluating market power, the following should be considered. Not every factor needs to be applied in each instance; ultimately, a case-by-case assessment, grounded in the characteristics of the relevant market, is required. Market position of undertaking and its competitors Calculation of market shares is ordinarily the starting point of any assessment The larger the market share, and the longer it is sustained, the greater the likelihood that the undertaking holds a dominant position 50% market share or more: generally evidence of the existence of a dominant market position 40–50% market share: may indicate market power, but this depends on additional considerations Below 40% market share: dominance is unlikely... ...

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View the related News about Dominance

NEWS
EU competition law daily briefing: statement of objections to Meta over WhatsApp AI assistant access ban; possible interim measures; updated reform timeline; merger clearances; State aid decisions; key upcoming dates

Antitrust Commission issues SO to Meta over WhatsApp AI access limits; flags possible interim measures The Commission has delivered a statement of objections to Meta, outlining its preliminary assessment that Meta blocked third-party artificial intelligence (AI) assistants from accessing and engaging with users on WhatsApp, infringing Article 102 TFEU (AT.41034). The Commission considers that Meta’s behaviour risks preventing competitors from entering or growing in the rapidly expanding market for general-purpose AI assistants and has therefore indicated its intention to impose interim measures (subject to Meta’s rights of defence) to avoid serious and irreparable harm to competition. Background On 15 October 2025, Meta announced changes to its WhatsApp Business Solution Terms, effectively prohibiting third-party general-purpose AI assistants from the platform. Consequently, from 15 January 2026, Meta’s own assistant, Meta AI, has been the only AI assistant available on WhatsApp. On 4 December 2025, the Commission opened formal proceedings to examine whether this policy shift amounts to an abuse of dominance. The investigation covers the EEA, excluding Italy, where...

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NEWS
Commercial law weekly: ASA rulings, Meta data dominance claim, waiver/rectification and liability caps, product safety reform, failure to prevent fraud guidance, bill of lading damages, fuel price monitoring

In this issue: Advertising, marketing and sponsorship Consumer protection Contracts Data protection Sale and supply of goods Supplier management LexTalk®Commercial: a Lexis®Nexis community Daily and weekly news alerts New and updated content Dates for your diary Trackers ASA rulings—6 November 2024 The Advertising Standards Authority (ASA) received two complaints about CurrencyWave and Eurostar. Complainants said CurrencyWave’s ad wrongly implied Financial Conduct Authority regulation and used inaccurate price comparisons. For Eurostar, concerns were that Instagram and Facebook ads overstated the availability of £39 fares and omitted key information. The ASA upheld both. See: LNB News 06/11/2024 51. ASA publishes its Vaping Project Review on vaping ads targeted at under-18s The ASA has issued its Vaping Project Review, detailing outcomes from investigations, tech-assisted monitoring, enforcement, stakeholder engagement and advisory work on ads aimed at under-18s since June 2023. It found influencers, companies, agencies and vaping brands posting paid and organic content, plus brand...

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NEWS
UK competition round-up: CMA Apple/Google Chapter II investigations, AlphaTheta/Serato Phase 2 issues statement, SAU advice on Life Sciences manufacturing subsidy, and key dates (28 June 2024)

Antitrust The CMA issued a further timetable update for its ongoing Chapter II investigation into Apple’s conduct over app distribution on iOS and iPadOS in the UK, especially the terms and conditions for developers’ access to the App Store—see further, case page The CMA set a further timetable for its Chapter II investigation into Google’s distribution of apps on Android devices (abuse of dominance)—see further, case page NOTE—For all live behavioural investigations before the CMA, see further, UK behavioural investigations—ongoing cases tracker Mergers The CMA published its issues statement for its phase 2 inquiry into AlphaTheta/Serato—see further, issues statement NOTE—For all live mergers before the CMA, see further, UK mergers—ongoing cases tracker Subsidy control The Subsidy Advice Unit released its final report giving advice to the Office for Life Science on its proposed Life Sciences Innovative Manufacturing Fund subsidy scheme for 2025–2030—see further, report NOTE—For all decisions referred under...

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View the related Practice Notes about Dominance

PRACTICE NOTES
UK competition authorities and sector regulators—abuse of dominance closed cases tracker (Article 102 TFEU/Chapter II CA98; 2013–present)

This table outlines completed CMA, OFT and sectoral regulator investigations from 2013 under Article 102 TFEU/Chapter II of the Competition Act 1998. Only publicly disclosed cases are included. For ongoing behavioural matters, see UK behavioural investigations—ongoing cases tracker. For appeals, see UK competition appeals—ongoing cases tracker. For completed Article 101 TFEU/Chapter I cases, see UK behavioural investigations under Article 101 TFEU/Chapter I Competition Act—closed cases tracker. For instances where the CMA has pursued director disqualification, see UK competition director disqualifications—cases tracker. 2025 Gas transportation — Scotia Gas Networks; Ofgem. Issue: alleged abuse of dominance. Commitments accepted—02/12/2025 Consultation on commitments launched—09/09/2025 Investigation opened—08/03/2024 Vifor Pharma (abuse of dominance) — Vifor Pharma; CMA. Issue: alleged abuse of dominance by making misleading claims about a rival iron treatment. Commitments accepted—23/05/2025 Consultation on commitments launched—10/12/2024 Investigation opened—31/01/2024 2024 ...

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PRACTICE NOTES
Spain: CNMC cartel, anti-competitive agreements and dominance cases—closed investigations tracker (Articles 101/102 TFEU; Spanish Competition Act), 2018–2026

This table outlines all concluded investigations by Spain’s competition authority (the National Commission on Markets and Competition—the CNMC) into alleged cartels, anti-competitive agreements and abuses of dominance (Articles 101/102 TFEU and national equivalents) since 2018. Note—only investigations made public are included. 2026 Investigations under Article 101 TFEU/Article 1 of the Spanish Competition Act Case name, companies under investigation and industry: Professional hairdressing products • I.C.O.N Issues: Restrictive agreements—price fixing Developments: Infringement decision issued—12/01/2026; fines totalling €1.2m imposed Investigations under Article 102 TFEU/Article 2 of the Spanish Competition Act Case name, companies under investigation and industry: Automotive fuels • Repsol Comercial de Productos Petrolíferos • Solred • Campsa Estaciones de Servicio Issues: Concerns the Repsol Group abused its dominant position through its pricing policy that squeezed the margins of independent low-cost petrol stations Developments: Infringement decision issued—03/02/2026; fines totalling €20.5 imposed 2025 Investigations under Article 101 TFEU/Article 1 of the Spanish Competition Act ...

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PRACTICE NOTES
Margin Squeeze under Article 102 TFEU: Evolution, As-efficient Competitor Test, and Case Law from Commodities to Telecoms

Margin squeeze Margin squeeze is a form of exclusionary behaviour aimed at rivals, intended to remove them or undermine their viability—either by driving them from the market or by deterring entry at the outset. Where a vertically integrated firm holds a dominant position in an upstream market for a vital input and also supplies that input to wholesale customers who compete at retail, it can have both the means and the incentive to exclude those competitors from the downstream market. The dominant firm compresses retail rivals’ margins by setting a high wholesale charge, a low retail price, or a mix of the two, thereby narrowing the gap between the cost of essential inputs and the price attainable in the retail market. Consequently, the spread between the dominant undertaking’s retail price for the product or service and the wholesale price it levies on its rivals is insufficient to allow an efficient retail rival to compete effectively. This weakening of effective competition downstream can, in turn, result in higher prices, diminished...

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View the related Precedents about Dominance

PRECEDENTS
Competition law red flags for staff: cartels, abuse of dominance, RPM, territorial and customer restrictions, exclusivity, tying/bundling, predatory pricing and refusals to supply

Behaviour red flags are situations that should prompt you to probe further. Though they can be hard to spot, many scenarios can indicate the presence of anti-competitive conduct. This awareness tool highlights potential competition law warning signs, indicators, traits or behaviours to be especially alert to at all times. Even a single red flag may suggest anti-competitive conduct. 1 Cartel behaviour Any attempt to fix prices. Any attempt to engage in bid-rigging. ...

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PRECEDENTS
UK competition law compliance: code, prohibited agreements and abuse of dominance, competitor interactions, and CMA dawn raid guidance

We are strong but fair competitors We pursue competition with energy while upholding integrity and complying with all relevant competition laws. These laws exist to protect businesses and consumers from anti-competitive behaviour, and to preserve effective competition. Competition laws forbid 'restraints of trade', covering certain kinds of agreements or conduct involving rivals, customers or suppliers, and can also apply to a single undertaking with a dominant market position...

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PRECEDENTS
Competition law: staff guide to dominance and abuse—market power statements, exclusivity, tying/bundling, refusals to supply and pricing

1 What is dominance? 1.1 As a general guide, a firm that persistently holds above 40% of the market on a consistent basis is usually regarded as being in a dominant position. Typically, that level must be sustained for at least two consecutive years. Yet market share alone is not decisive; a company is dominant if, to a meaningful degree, it can operate independently of rivals, customers and consumers within the relevant market, rather than being constrained by them. 1.2 An organisation in a dominant position bears a ‘special responsibility’ to avoid behaviour that harms effective competition. Failing to live up to that duty may expose the business to allegations of abusing a dominant position. Identifying what amounts to abuse is not always straightforward or clear-cut. 2 Why market dominance is a concern 2.1 Dominant firms carry a special responsibility to make sure their actions do not skew or distort competition. 2.2 Such companies should routinely review their behaviour against that responsibility and question the...

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