(1) No enterprise holding dominant position shall abuse, or cause to be abuse, such position with intent to control competition in the production and distribution of any goods by that enterprise or through its affiliation .
Explanation: For the purposes of this Section, the expression “dominant Position” means a position of strength enjoyed by any person or enterprise that
produces or distributes any goods or services, whereby such person or enterprise holds, either individually or jointly with another enterprise that
produces or distributes the identical or similar goods or services, 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 of strength which enables such person or enterprise, either individually or jointly with another person or
enterprise that produces or distributes the identical or similar goods or services, to affect the relevant market or to implement its decision independently.
(2) ♣ With prejudice to the generality of Sub-section (1), if an enterprise holding dominant position does any of the following acts in the State
of Nepal or any area of the State of Nepal, it shall be deemed to have abused its dominant position:
(a) preventing or restraining any goods or services produced or imported by another person or enterprise that produces or distributes
identical or similar goods or services from entering into the market of its goods or services;
(b) limiting or controlling the production or distribution of any goods or services which is likely to decrease the market supplies for any
♣ Amended by The Act Amending Some Nepal Acts, 2064
reasonable cause or limiting or controlling investment to be made  for the development of technology related to the production or
distribution of such goods or services;
(c) without any reasonable cause, fixing different prices in purchase or sale of any goods or services in the market of the same
geographical area or prescribing additional terms and conditions of sale or purchase of such goods or services;
(d) prescribing the price of the goods or services produced by it in such a manner so as to prevent competition in the market, directly
or indirectly;
Provided that nothing contained in this clause shall be deemed to be prejudicial to the fixation of the price of such goods or services
or alteration in the price of such goods or services by the concerned enterprise, by obtaining prior approval of the
Government of Nepal or the competent authority under the laws in force.
(e) without any reasonable cause, reducing the quantity of the goods  or services that it produces or distributes or reducing the quality of
such goods or services in a manner to be prejudicial to the consumers;
(f) in the production or distribution of any goods or services, prescribing any terms and conditions which are unnecessary or
irrelevant with such goods or services.
(3) Notwithstanding anything contained in Sub-section (2), where any of the following acts is proved to have resulted in the commission of
any of the acts referred to in that Sub-section, it shall not be deemed to be an abuse of dominant position:
(a) doing any activity by any person or enterprise holding dominant position in order to enhance the quality of the goods or services
that such person or enterprise has been produced or distributed or to improve technical standards thereof and the results achieved
from such activity are applied in the interests of consumers of such goods or services;
(b) doing any act for the protection or enforcement of any kind of intellectual property owned by any person under the laws in force.
(4) For the purposes of this Section, the Board shall prepare a list of enterprises which produce or distribute various goods or services and
hold dominant position and publish the list publicly from time to time.
(5) Such enterprises shall be deemed to continue to hold dominant position until the list referred to in Sub-section (4) is altered.