The correct answer is Section 4 of the Competition Act, 2002.
Section 4 of the Competition Act, 2002 prohibits abuse of dominant position. It states that an enterprise that has a dominant position in the relevant market shall not abuse that position.
An enterprise is said to have a dominant position if it is in a position to control
the prices or quantities of goods or services that are supplied or demand in the relevant market, or to prevent or restrict competition in the relevant market.Abuse of dominant position can take many forms, such as:
- Charging excessive prices
- Imposing unfair or discriminatory terms or conditions on suppliers or customers
- Limiting production, markets or technical development to the prejudice of consumers
- Applying dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage
- Making the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts.
The Competition Commission of India (CCI) is the body that is responsible for enforcing the Competition Act, 2002. The CCI can investigate complaints of abuse of dominant position and, if it finds that an enterprise has abused its dominant position, it can impose penalties, such as fines or imprisonment.
Section 4 of the Competition Act, 2002 is an important provision that is designed to protect
competition and consumers. It prohibits enterprises that have a dominant position in the relevant market from abusing that position. The CCI is the body that is responsible for enforcing this provision.