Market functioning itself is not necessarily distorted when a business grows to become large. Efficiency-related interests at times call for large-scale operational levels or being present in several markets.

In addition, business growth may even be a direct consequence of "virtuous" market behaviour, with better-priced or higher-quality products that satisfy consumer needs.

An undertaking is said to hold a dominant position when the way it behaves is essentially independent of both its competitors and its consumers. This tends to happen when an undertaking holds a particularly high share of sales in a specific market and the reaction capacity of its actual or potential competitors is limited by specific market characteristics and/or institutional constraints.

The law does not prohibit a dominant position as such, but it places restrictions on the possible behaviour of an undertaking occupying a dominant position. This amounts to a prohibition on the abuse of a dominant position in the domestic market or a substantial part thereof (Section 3 of Law no. 287/90, or Article 102 TFUE for possible distortions in trade between EU member States).

The main examples of such abuse are charging prices or imposing terms and conditions which are unjustifiably burdensome, or acting in such a way as to impede market access by other competitors or induce them to abandon their operations.