Section 4 of CA, 2002 : Section 4: Abuse Of Dominant Position

Explanation using Example

Example Application of Section 4 of The Competition Act, 2002:

Imagine there is a company, SuperTech Ltd., which holds a dominant position in the market for high-end smartphones in India. They introduce a new model with advanced features and simultaneously decide to stop providing software updates for their older models, forcing consumers to purchase the new model if they want continued support.

This could be seen as an abuse of dominant position under Section 4(2)(b) of the Competition Act, as SuperTech Ltd. is limiting the provision of services for older models to the prejudice of consumers who might not be ready to upgrade to the new model yet.

The Competition Commission of India (CCI) could investigate this practice to determine if it indeed constitutes an abuse of dominant position and, if so, take appropriate action against SuperTech Ltd. to protect consumers and ensure fair competition.