Dominant position generally means an enterprise having the ability to exert dominance upon other competitors in the market and act independently of the market forces. A dominant position is not considered illegal per se. However, the abuse of dominant position is illegal as per Section 4 of The Competition Act, 2002.
Digital markets act as digital middlemen for consumers and producers to efficiently do transactions through online mode. With the growing prominence of digital markets in India due to various factors like advanced technology, wider reach, ease in doing transactions etc, enterprises involved in digital markets have expanded exponentially. However, some of the enterprises have also indulged in anti-competitive practices, disrupting the markets and causing hindrances to both the consumers and producers.
The Competition Commission of India has been actively involved to prevent such anti-competitive practices and has recently directed investigations against search engines and food delivery apps, amongst others, for abuse of their dominant position in the relevant market.
Source: Barandbench
