Let’s begin with the first concept of market dominance. In simple terms market dominance is a situation where certain companies or groups of companies occupy the position of influencing the market. They can influence the market or will develop power to even control the market. If some company or group becomes dominating they can be out of control which will be a negative environment for consumers, as they will try to surpass or try to eradicate competitors, influence price and trade policies.
This will have an unfavourable impact on the competition which is fundamental to the market.
The Singapore government has commission which will look after the competition of market and try to eradicate market dominance on any company or group of companies.
The competition and consumer commission of Singapore (CCCS) has an act for fair market and fair competition. They mandate to have competition, they closely monitor any kind of anti competitive behaviour, people trying to grab the dominance in the marketplace, influencing companies to abuse their power in the market. They also try to supervise the mergers or any acquisition which can hamper the market and try to remove the competitive environment.
How does CCCS determine that any company or group of companies has dominance in the market.
There are numerous things CCCS consider before determining
- Market share
- Pricing behavior
- Market dynamics
- Fair competition
- Easy entry of new players
One thing you have to remember that only company share is not a great indicator to show that some companies have dominance in the market other various factors indicate market prominence. How many competitors are there, is it easy for a new company to enter the market? The level of innovation and options available are some criteria that need to be looked at before.
The CCCS can monitor numerous companies if they come across such companies or groups of companies who can menace to fair competition in the market, or manipulate the market, or abuse their already dominant position to dominate more. The CCCS can take some measures to rectify it. They can opt for enforcement actions to retain the fair competition, they also have the right to impose penalties and fines. They also can order behavioral based remedies. It’s not just it, they can go beyond these mentioned steps to take action to restore fair market competition and protection of consumers.
The CCCS works towards improving the innovation, productivity and competition in the Singapore market. They try to annihilate those factors which can destroy the competitive environment of the market. The work to enhance the economic outcome while promoting fair competition for all.
The dominance of the market and few people taking over the market can kill competition as well as harm the welfare of the consumers. In order to boost the economy, to protect consumers, to provide a platform for beginners is a completely essential element to have a better marketplace where fair competition exists.
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