Depending on individual circumstances, single companies with market shares above 25 per cent may have the capacity to prevent workable competition.50 Given the technological gap between R&D-based pharmaceutical companies and local pharmaceutical producers in small developing countries or LDCs, foreign patent holders will in many cases have the capacity to prevent competition in the above sense. It is important to note that under the TRIPS Agreement, developing countries are not prevented from applying stricter criteria to determine market dominance and anticompetitive conduct. Such practices may occur through unilateral conduct or contractual agreement.507 They do not necessarily have to constitute anti-competitive conduct.