Which of the following is considered a form of market abuse due to a dominant position?

Prepare for the ACA ICAEW Tax Compliance Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

A form of market abuse due to a dominant position primarily involves actions that unfairly limit competition or exploit a dominant market position to the detriment of consumers or other businesses. The option that highlights "limiting production, markets, or development" is classified as anti-competitive behavior. This type of conduct restricts the availability of goods or services in the market, potentially leading to higher prices or reduced choice for consumers. When a dominant company employs such strategies, it undermines fair competition and can worsen market dynamics, which is why it is recognized as a form of market abuse.

In contrast, unfair advertising practices may violate regulations but do not inherently involve the abuse of a dominant market position. Exclusively offering discounts to all customers is typically a competitive strategy that can enhance market presence rather than restrict it. Disallowing contract negotiations, though potentially problematic, does not necessarily represent the same level of market control or abuse associated with limiting production or market access.

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