ANTITRUST CASE

GROUP 3
Amrita Pasari - 2021MBA72
Bidisha Goswami - 2021MBA065
Himanshu Verma - 2021MBA110
Krishnareddygari Swapnika - 2021MBA59
Manjeema Samadder - 2021MBA069
Sarvesh Singh - 2021MBA111
Swarnali Ghosh - 2021MBA73

Question a. How would you go about establishing dominance and abuse of

dominance? (refer to the one-pager - Know your competition act). As per
assessment in this case, would you conclude that Coal India has indeed abused
its dominant position?

Answer. The basic way to establishing dominance and abuse of dominance can be
explained as:
● While dominance is just a position of strength, abuse of dominance is exploiting the
position to influence the market in their favor
● Dominance is generally gained by monopoly or by a substantial gain of market
share. On the other hand, abuse of dominance is taking advantage of the market
power and manipulating competition
● The aim in case of dominance is to earn a considerable amount of market share and
eventually become the market leader. As for abuse of dominance, the simple aim is
to eradicate any current or future competitor altogether
● Establishing dominance focuses on determining the prices based on the market
condition. Abuse of dominance, however, focuses on exploiting the market
condition with an unjust price in the sale or purchase of goods and services
The Central Government is solely responsible for coal production and delivery. As a result
of the entrance barrier set by the policy actions, the issue of supply-side substitution did
not arise. There is no price competition on CIL in the market, and there is no horizontal
threat to CIL and its subsidiaries' market power. As a result, CIL enjoys monopolistic
authority over coal manufacture and supply in India as a result of the statute. In India, the
power sector is divided into three or four segments, each having its own functionality,
corporate structure, and value chain contribution. As a result, we can conclude that anti-
competitive behavior in the demand and distribution of coal to power-generating utilities
has substantial economic consequences. Market inefficiencies stifle growth and result in
high tariffs that are passed on to end-users.
Hence it can be concluded that Coal India has indeed abused its dominant position.

Question b. What are the challenges of dealing with the dominance issue with
regard to platform / digital markets?

Answer.

Using the dominant position of one platform to shore up another platform, such as
Instagram and Facebook. Position of strength - allows firms to influence competitors and
consumers.

It allows digital platforms to function autonomously and influence the market in their
favour. Google is attempting to get mobile phone manufacturers to use Chrome as a web
browser.

Monopoly diminishes consumers' negotiating power since they have fewer options to select
from. Monopoly inhibits market competition and innovation.

Solution
Economic freedom and opportunity are protected by fostering free and fair competition;
the antitrust framework is being adapted to digital concerns; and competition law
enforcement is being enforced.

Mergers and acquisitions should be examined.

Platforms owned by tech behemoths are being broken up.

The Federal Trade Commission/CCI is conducting an antitrust inquiry.