MDPPACPB Regulations

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38.  Investigation and Determination of Market Dominance 
(1) Regulatory Oversight  
The Authority shall monitor the market for signs of abuse of dominance and 
may initiate investigations where warranted. 
(2) Authority to Determine Dominance: 
 The Authority may, either on its own initiative or upon complaint, investigate 
and determine whether a licensee, or a group of licensees under common 
ownership or control, holds a dominant position in any relevant midstream or 
downstream petroleum market. 
(3) Assessment Criteria:  
In determining the existence of dominance, the Authority shall assess all 
relevant facts and circumstances, including but not limited to: 
 
(a) The market share of the licensee over time and relative to 
competitors; 
 
(b) The existence and magnitude of barriers to market entry or 
expansion; 
 
(c) The availability and interchangeability of substitute products or 
services; 
 
(d) The degree of countervailing buyer power in the relevant market; 
 
(e) Access to critical infrastructure, data, inputs, or distribution channels; 
 
(f) The overall structure, conduct, and performance of the market. 
(g) Access to competitively sensitive information or strategic inputs; 
 
(h) Barriers to entry or expansion for competitors; 
 
(i) Evidence of pricing power or ability to unilaterally influence market 
outcomes 
(4) Market Definition:  
As part of its assessment, the Authority shall define the relevant product and 
geographic market based on commercial substitutability, functional 
equivalence, and competitive dynamics. The definition shall be consistent with 
economic and legal principles and may be updated from time to time. 
(5) Publication of Finding: 
 Where the Authority determines that a licensee or group of licensees is 
dominant in a relevant market, it shall issue a formal finding which shall include: 
 
(a) The identity of the dominant firm(s); 
 
(b) A summary of the factual and economic basis for the finding; 
 
(c) The defined relevant market(s); and 
 
(d) Any obligations or recommendations applicable to the dominant 
firm(s). 
The finding may be published on the website of the Authority or through other 
public notices, subject to confidentiality protections. 
(6) Notice of Special Responsibility: A licensee found to be dominant shall be 
formally notified by the Authority that, by virtue of its market position, it bears a 
special responsibility not to conduct its operations in a manner that impairs, 
restricts, or distorts competition. Any conduct by a dominant firm that has the 
effect of foreclosing the market, excluding rivals, or exploiting customers shall 
be closely scrutinized and may constitute abuse under this Regulation.