Uncompetitive practices due to market dominance

(1) A dominant operator shall not take advantage of his power in a market for the supply of a telecommunication service with a view to40 (a) eliminating or substantially damaging another licensee in the market in which he operates or in any other market; (b) preventing the entry of any other person into that market or any other market; (c) deterring any other licensee from engaging in competitive conduct in that or in any other (2) (a) A dominant operator shall not discriminate between persons who acquire or make use of a telecommunications service in the market in which he operates in relation to– (i) any fee or charge for the service provided; (ii) the performance characteristics of the service provided; (iii) any other term or condition on which the service is provided. (b) Nothing in paragraph (a) shall prevent a dominant operator from making a reasonable allowance, subject to the approval by the PUC, for the cost of providing a telecommunication service where the difference results from– (i) different quantities in which the service is supplied; (ii) different transmission capacities needed for the supply of the service; (iii) different places from or to which the service is provided; 41 (iv) different periods for which the service is provided; (v) different performance characteristics of the service provided; or (vi) doing an act in good faith to meet a price or benefit offered by a competitor. (3) For the purposes of this Act, the PUC may determine that a service provider is dominant where, individually or jointly with others, it enjoys a position of economic strength affording it the power to behave to an appreciable extent independently of competitors, customers and ultimately consumers and, for such determination the PUC shall take into account the following factors– (a) the relevant market; (b) technology and market trends; (c) the market share of the provider; (d) the power of the provider to influence prices; (e) the degree of differentiation amongst services in the market; (f) any other matter that the PUC deems relevant. (4) A licensee shall not enter into or give effect to any agreement, arrangement or understanding which has the purpose or has, or is likely to have, the effect of significantly lessening competition in any market for the supply of telecommunication services or of any product used in connection with (5) A licensee shall not enter into or give effect to any agreement, arrangement or understanding with another licensee which has the purpose or has, or is likely to have, the effect of fixing, controlling or maintaining the prices for, or any discount, allowance, credit or rebate for, any telecommunication service or any product used in connection with telecommunication (6) In the interest of consumers and competition, no utility service provider in the water or electricity industries shall be allowed to compete in telecommunications and vice versa. (7) No utility service provider in the water or electricity industries shall be allowed to have controlling interests in telecommunications industry and vice versa. (8) For the purposes of sub-section (7), “controlling interest” is defined as effective ownership of 25 per cent of the company’s issued and outstanding voting shares or having representation of 25 per cent or more on the Board of Directors. (9) Where a service provider provides telecommunications services and, in the opinion of the PUC, an activity of an affiliate is integral to the provision of the service by the service provider, the PUC may treat some or all of the earnings of the affiliate from the activity as if they were earnings of the service provider.