What does the term 'abuse of dominant position' refer to in competition law?

The term 'abuse of dominant position' in competition law refers specifically to the conduct of a company that possesses significant market power and uses that power to gain an unfair advantage over competitors or to harm consumers. This can manifest in various ways, such as setting excessively high prices, imposing unfair trading conditions, or engaging in practices that reduce competition. The focus is on the negative impact that such behaviors can have on the market and competitors.

In this context, misusing market power indicates actions that go beyond fair competition, potentially leading to reduced choices for consumers, higher prices, or stifling of innovation. By leveraging their dominant status, companies may engage in practices that distort fair market dynamics, resulting in detrimental effects on market health.

The other options do not capture the essence of what constitutes abuse of dominant position. For instance, offering discounts to loyal customers typically promotes competition and can enhance consumer welfare. Introducing new products is generally a positive and competitive action, and maintaining low prices for consumers benefits market competition rather than undermining it. Thus, these actions are aligned with healthy competition rather than abusive behavior.