I. Legal Basis

2018 Competition Law

II. Definition

A business is considered to have a dominant market position if it has significant market power or holds a market share of 30% or more in the relevant market.

The significant market power of a business is determined based on the following factors:

• Market share comparison between businesses in the relevant market;
• Financial strength and size of the business;
• Barriers to entry or market expansion for other businesses;
• The ability to control or access the distribution or consumption market for goods and services, or supply sources for goods and services;
• Technological or infrastructure advantages;
• Ownership or control over infrastructure;
• Ownership or usage rights of intellectual property rights;
• Ability to switch to supplying or demanding other related goods or services;
• Specific factors in the industry or sector in which the business is operating.

Businesses with a dominant market position always have a competitive advantage over other ordinary businesses. Therefore, the Competition Law has stipulated certain prohibited practices for businesses in a dominant market position to protect competition and ensure fairness in the market.

III. Prohibited Practices of Abuse of Market Dominance

Prohibited acts of abusing a dominant market position include:

• Selling goods or providing services below the full cost price, leading to or potentially leading to the elimination of competitors;
• Imposing unreasonable purchase or selling prices for goods and services, or setting minimum resale prices, causing or potentially causing harm to customers;
• Restricting production or distribution of goods and services, limiting the market, or hindering technical or technological development, causing or potentially causing harm to customers;
• Applying different commercial terms in similar transactions, leading to or potentially leading to the prevention of other businesses from entering or expanding the market, or eliminating other businesses;
• Imposing conditions on other businesses in signing contracts for the sale of goods or services, or requiring other businesses or customers to accept obligations unrelated to the subject of the contract, leading to or potentially leading to the prevention of other businesses from entering or expanding the market, or eliminating other businesses;
• Preventing the participation or market expansion of other businesses;
• Engaging in other practices that abuse a dominant market position as prohibited by other laws.

IV. Importance of Determining Market Dominance

Vietnam’s Competition Law does not prohibit businesses from increasing their market power or achieving a dominant position. However, if a business abuses its position to engage in anti-competitive practices, such behavior will be prohibited under the Competition Law. Therefore, determining a business’s position in the market is a prerequisite for reviewing its anti-competitive conduct.

Thus, it can be confirmed that determining the market dominance of a business or group of businesses is the first step in identifying potential violations by that business or group.

V. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

■ Contact Hankuk Law Firm:

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