Post on 15-Aug-2015
Presented by: Abhishek Agarwal
Aditya Rana Sakshi Gupta
Shreya Chaturvedi Shipra Pareek
Competition Act 2002
Competition Coverage Need Emergence of Competition Objectives of Competition Important terms Anti – Competitive
Agreements Abuse of Dominant Position Competition Commission of
India Case Laws
What is in it for me
Means sellers striving
independently for
buyer’s patronage to
maximize profit. A buyer
prefer to buy a product
to maximize his benefits
where as seller prefer to
sell the product to
maximize its profits.
What is Competition in the Market
Access to broadest range of services
at the most competitive prices.
Reduce their costs and meet
consumer demand.
Promotes allocative and productive
efficiency.
This requires healthy market
conditions and Govt. across the
globe to remove the market
imperfections through appropriate
regulations.
Need of Competition
Emergence of Competition Act
Competition Act is applicable from January 2003.
This act extends to whole of India except J&K.
It is an act to provide, keeping in view of the economic development of the country for the establishment of the commission.
- To ensuring fairness & equity
in market place transactions.
- Protecting the “public
interest” including in some
cases considerations relating
to industrial competitiveness
and employment.
- Protecting opportunities for
small and medium business.
Objectives of Competition Act
Important Terms:
CARTEL
CONSUMER
PRICECHAIRPERSON
COMMISION
U/S 3 of the Act, no enterprises or association of enterprises or person or association of persons shall enter into any agreement in respect of production, supply, distribution of goods which directly or indirectly causes an adverse effect on the competition in India.
Anti- Competitive Agreements
Tie – In Agreement
Exclusive Supply
Agreement
Exclusive Distributio
n Agreement
Refusal to deal
Resale Price
Maintenance
TYPES OF ANTI- COMPETITIVE AGREEMENTS
U/S 4 No enterprise or group shall abuse its dominant position.
Abuse of Dominant Position
(a) “dominant position” means a position of strength, enjoyed by an enterprise, in the relevant market, in India, which enables it to-
(i) operate independently of competitive forces prevailing in the relevant market; or
(ii) affect its competitors or consumers or the relevant market in its favour;
(b) “predatory price” means the sale of goods or services, at a price which is below the cost, with a view to reduce competition or eliminate the competitors.
Explanation:
CCI is an autonomous body established by Central Government controls and regulates the competition in Indian economy and market.
Competition Commission of India established on 14th October, 2003 by Central Government.
CCI consists of a Chairperson and not less than two and not more than six other members appointed by the Central Government.
Competition Commission Of India
To eliminate practices having adverse effect on competition.
To promote and sustain competition.
To promote interest of consumers.
To ensure freedom of trade carried on by other participants, in market in India.
Conduct enquiry into cases of abuse of dominant position and combinations.
Powers Of CCI
New Pepsodent V.
Colgate
Case Law:
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