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ARTICLE · 28 DECEMBER 1995

Competition

European Federal Credit Bank Limited
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IrelandEmployment and HR
Johnny Johnson
Johnny Johnson

"Dominance" - The Competition Authority's perspective.

The Competition Authority's recent Interim Report of the study on the newspaper industry offers a useful insight into the Competition Authority's perception of what constitutes "dominance". The Report resulted from a request by the Minister for Enterprise and Employment to the Competition Authority to undertake a study and analysis of the practice and method of competition affecting the supply and distribution of newspapers in Ireland.

In Chapter 6 of the Report the Competition Authority concluded that to be regarded as dominant, a firm must have the ability to exercise market power, that is, it must have sufficient power to enable it to raise prices or to act in some other way independently of rivals. The Competition Authority regards this as requiring not just that a firm must have a large market share but that the prospect of entry by new competitors which might reduce the dominant firm's market power must also be

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