ABSTRACT
This chapter focuses on markets that are dominated by one company and discusses the legal aspects of dominant positions, starting with European legislation. It also discusses exogenous barriers, which are embedded in the structural conditions of the market, for example, technology and nature of the products. If companies already present in the market are producing at the Mminimum efficiency scale (MES) level, new companies are practically forced to produce the same quantities. The higher the MES point relative to the total size of the market, the greater the problem becomes. It means that the new entrant must have a realistic prospect of a high market share. Economies of scale are especially important in markets where fixed costs are high in relation to variable costs. Having a position of economic power is related not only to existing competition in a market but also to the potential for competitors to enter that market.
