Abuse of dominant position in the Iranian and European automotive industries: a competition law analysis

Abuse of the dominant position is one of the anti-competitive practices in the automotive sector. Consequently, this abuse can lead to monopolising the automobile market, the lack of competition, unfair contract terms, and the expansion of a few companies' market power. The main objective of this study is to answer the following questions: What are the causes and examples of abuse of dominant position in the Iranian and European automotive industries? What solutions are there to limit and prevent the abuse of dominance in this market? The questions are addressed by using a descriptive-analytical approach. Study results indicate that Iranian automotive industry failure factors include failed and non-targeted state aid, impediments to private sector practice, and tariff and non-tariff barriers to foreign automakers' practices on the Iranian market. A review of successful competition law enforcement strategies enacted by the EU will be conducted with the objective of improving the Iranian automotive market.