Competition Promotion and Market Protection Act, 2007

4. Not to Abuse Dominant Position: (1) Any firm having a dominant position shall not, by itself or through its affiliated bodies, while producing or distributing any goods or services, abuse or cause to be abused such position with the aim of restricting competition. Explanation: For the purpose of this section, "dominant position" means a position occupied by a person or firm producing or distributing any goods or services, either alone or jointly with other firms producing or distributing goods or services of a similar nature, holding at least forty percent or more of the annual production or distribution of such goods or services within the State of Nepal, or a position enabling such firm, alone or jointly with other persons or firms producing or distributing goods or services of a similar nature, to influence the relevant market or to unilaterally implement its decisions.

(2) Notwithstanding anything contained in sub-section (1), amended by Some Nepal Acts Amendment Act, 2064.any firm having a dominant position shall be deemed to have abused its dominant position if it does any of the following acts throughout the State of Nepal or in any area of the State of Nepal:-

(a) To create obstacles or restrictions on the market entry of goods or services produced or imported by any other person or firm producing or distributing goods or services of a similar nature,

(b) Without reasonable cause, to limit or restrict the production or distribution of any goods or services in a manner that may reduce supply in the market, or to limit or restrict investment for the development of technology relating to the production or distribution of such goods or services,

(c) Without reasonable cause, to fix different purchase or sale prices for any goods or services in the market of the same geographical area, or to impose additional terms for the purchase or sale of such goods or services,

(d) To fix prices for goods or services produced or distributed by itself, directly or indirectly, in a manner that prevents competition in the market:

Provided that nothing in this clause shall be deemed to adversely affect the right of the concerned firm to fix the price of such goods or services or to alter the price of such goods or services, with prior approval from the Government of Nepal or an authority empowered by prevailing law.

(e) Without reasonable cause, to reduce the quantity or deteriorate the quality of goods or services produced or distributed by itself, adversely affecting consumers,

(f) While producing or distributing any goods or services, to impose conditions unrelated to or unnecessary for such goods or services.

(3) Notwithstanding anything contained in sub-section (2), doing any of the following acts shall not be deemed an abuse of dominant position if it is proven that such act was done in accordance with that sub-section:-

(a) If any person or firm having a dominant position undertakes any action to enhance the quality or improve the technical level of goods or services it has been producing or distributing, and if the benefit derived from such action is in the interest of consumers of such goods or services,

(b) If such action is taken for the protection or use of any intellectual property right lawfully acquired by any person under the prevailing law.

(4) For the purpose of this section, the Board shall prepare a list of firms having a dominant position in producing or distributing various goods or services and publish it publicly from time to time.

(5) Until such list under sub-section (4) is amended, such firms shall be deemed to continue to hold a dominant position.