When is enterprises considered considered to hold a monopoly position in Vietnam? When are enterprises or a groups of enterprises considered to hold a dominant position on the market in Vietnam?- Quang Anh (Binh Phuoc)
Article table of contents
When is enterprises considered considered to hold a monopoly position in Vietnam?
Pursuant to Article 25 of the Law on Competition 2018, an enterprise shall be considered to hold the monopoly position if there is no enterprise competing on the goods or services dealt in by such enterprise on the relevant market.
When is enterprises, groups of enterprises considered to hold a dominant position on the market in Vietnam?
Pursuant to Clause 1, Article 24 of the Law on Competition 2018, an enterprise shall be considered to hold a dominant position on the market if it has substantial market power or has market shares of 30% or more on the relevant market.
In which, substantial market power of an enterprise or group of enterprises is determined based on some of the following factors:
- Market shares of enterprises on the relevant market;
- Financial strength and size of the enterprise;
- Barriers to market entry and expansion to other enterprises;
- Ability to obtain, assess, control the goods distribution/consumption market or sources of supply;
- Advantages in technology and technical infrastructure;
- Right to own, obtain and assess infrastructure;
- Right to own or use subject matters of intellectual property;
- Ability to transfer to other sources of supply or demand associated with other goods and related services;
- Particular factors in the sector that the enterprise runs the business.
When is a group of enterprises considered to hold a dominant position on the market in Vietnam?
Pursuant to Clause 2, Article 24 of the Law on Competition 2018, a group of enterprises shall be considered to hold a dominant position on the market if they jointly cause anti-competitive effects and have substantial market power or their total market shares fall into one of the following cases:
- Two enterprises having the total market share of 50% or more on the relevant market;
- Three enterprises having the total market share of 65% or more on the relevant market;
- Four enterprises having the total market share of 75% or more on the relevant market;
- At least five enterprises having the total market share of 85% or more on the relevant market.
In which, the substantial market power of the group of enterprises is determined as for the enterprises mentioned above.
Note: A group of enterprises holding a dominant market position prescribed above excludes an enterprise holding market share of less than 10% of the relevant market.
Mai Thanh Loi
