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The condition that is primarily characterized by damage to bile ducts is primary sclerosing cholangitis. This condition involves progressive inflammation and fibrosis of the bile ducts, which can lead to their strictures and ultimately to bile duct obstruction. Over time, this process can result in cholestasis, liver damage, and complications such as cirrhosis and liver failure.

In primary sclerosing cholangitis, the damage specifically targets the large bile ducts initially, and as the disease progresses, smaller bile ducts may also become affected. The damage is often associated with other autoimmune conditions such as inflammatory bowel disease, particularly ulcerative colitis.

In contrast, hepatitis C and autoimmune hepatitis primarily affect the liver parenchyma and involve inflammation of liver cells rather than direct damage to bile ducts. Primary biliary cirrhosis does involve the destruction of small bile ducts but is more specifically known for affecting the intrahepatic bile ducts leading to cholestasis and is considered an autoimmune condition itself. However, it is the primary sclerosing cholangitis that most directly involves damage to the bile ducts at multiple levels of their structure throughout the biliary system.