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Abuse of Dominant Position (Section 21)

A firm is considered dominant when it has substantial market power/share which can be determined first by defining which market the firm falls under. Becoming dominant in the market itself is not prohibited. However, it is illegal when the firm abuses its power to engage in conducts that intent or effect the prevention, restriction or distortion of competition in Brunei Darussalam such as:

1.Predatory pricing
 This occurs when a firm sets their prices unreasonably low with the intent of driving competitors out of the market which would then enable the firm to set a higher price in the long run.
2.Exclusionary dealings
 This occurs when a dominant firm trades with another firm and restricts with whom the other firm trades with.
3.Refusal to/restricting supply
This occurs when a firm intentionally refuse to or limit its supply so that prices would increase and so will its profits.