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    HISTORY OFCOMPETITION LAWIN INDIA

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    left the Indianeconomy crippled.

    left the Indianeconomy crippled.

    British rule inIndia

    FIGHTINGECONOMICCOMPETITION

    FIGHTINGECONOMICCOMPETITION

    After

    Independence dream destination forcelebrating theadvantages ofGlobalization andLiberalization

    dream destination forcelebrating theadvantages ofGlobalization andLiberalization

    Situation

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    INDIANECONOMY

    Thetechnologicaland scientific

    capabilities were

    poor

    industrializationwas limited and

    lopsided

    Agriculturalsector -feudal

    and semi-feudalinstitutions,

    resulting intolow productivity

    Poverty andunemployment

    Neitherresources norskilled work

    force

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    Mainconcern

    Industry

    NarasimhaGovt.

    Unemployment poverty, agriculture-5 year plan-

    industry - 5 year plan 2

    Labour laws-

    Bt concern was welfare ofpeople and growth of nation asa whole- strengthen nation

    Entry exit barriers

    Liberalisation-

    Market open to foreigncountries

    competition

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    MIC

    MIC appointed under Commission of Inquiry Act, 1952

    Scope of inquiry - extent and effect of concentration of economic powers in private hands.

    MIC to suggest legislation and other measures to protect essential public interest and alsosuggest agency for enforcement of the legislation

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    Adverse socialeffects ofeconomicconcentration

    Governmentpolicies one ofthe main causesof economicconcentration

    New technology

    scale ofproduction

    War efforts ofIndia

    Political largesse Large number ofindustries hadeither singlesupplier or onesupplier havinglarge share of

    market. Collusivebehaviour incertain sectors

    Entry barriercreated by privateplayers

    Evidence ofpredatory pricing

    Many publicsector enterprisesenjoyedmonopoly

    Many restrictivetrade practices

    (RTP) prevalent

    FINDINGIGS OFMIC

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    Setting up public sector enterprises in sectors which have littlecompetition

    Proposed an autonomous Commission headed by a Judge to

    implement a new law-( investigative + punitive )

    Scope of merger control limited to merger involving a dominantenterprise (at least 1/3 of share in production/ supply/distribution)

    All proposals for expansion by dominant enterprises to be approved bythe proposed

    IPRs to be under the purview of the proposed law.

    Recommendations of MIC

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    SACHAARCOMMISSION-

    1977

    Reviewed theworking ofMRTPC

    during the period1970-77

    Found that the

    actual role ofMRTPC was limited

    and mostlyadvisory

    The Government

    had not made useof the expertise few references toMRTPC for opinion

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    RECOMMENDATIONS OF THE SACHARCOMMITTEE Definition of dominant enterprise to be changed enterprises with market

    share to be termed dominant Harmonization of definition of goods in theMRTP Act with the Sale ofGoods Act Inter-connected undertakings concept to be introduced to theMRTP Act Government Undertakings to be brought under purview ofMRTPC Compulsory reference by the Central Government onMTPs toMRTPC AllM&As to be referred for advise ofMRTPC, if the Central Government sodesires. Division of enterprises-MRTPC to pass final orders if the Central Governmentreferred the matter to it. Certain Unfair Trade Practices (UTPs) like misleading advertisements to be

    inserted in the Law Power to compensate against injury Power to grant interim injunction Power of contempt Investigating arm to be provided more teeth by powersof conducting down raids and limited Civil Court powers

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    1984 AMENDMENT TO MRTP ACT

    Many deviations from the recommendations of the Sachar Committee

    Concept of deemed illegality to host of trade practices introduced

    Exclusionary behaviour, tie in sale, re-sale price maintenance, bid rigging, allocation of

    market, boycott predatory pricing etc.

    Registration of agreements by dominant enterprises made mandatory

    Mis-representation as well as misleading or disparaging advertisement included

    Provisions prohibiting UTPs introduced

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    1991 AMENDMENT TO THE MRTP ACT

    Provisions dealing with monopolistic enterprises seeking prior Government approval

    deleted

    Government Undertakings, Government Corporations and Government owned

    Companies brought under the purview of theMRTP Act by notification

    Granting of injunction without issue of notice to the effective parties

    PROVISIONS IN PRESENT MRTP ACT

    Has jurisdiction in RTP & UTP 14 practices are deemed RTP

    MTP if referred or suo moto, but can only recommend to Government

    M& A were deleted in 1991

    Can grant temporary injunction

    Has powers of contempt

    For disobedience,MRTPC must complain to criminal court

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    RAGHAVAN COMMITTEE A high level Committee on Competition Policyand Law set up in 1999. recommending a suitable legislation framework which could either be a new law orappropriate amendments to theMRTP Act

    FINDINGS OF THE RAGHAVAN COMMITTEE

    Word competition used sparsely in theMRTP Act only twice Absence of precise definition e.g. Cartels Inadequate to deal with implementation of the WTO Agreements No specific powers under theMRTP Act to deal with mergers

    Inadequate in dealing with anti-competitive practices as in other modern competitionlaw Expedient to have a new Competition Law

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    COMPETITTION ACT- 2002

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    (as indicated in Preamble)

    keeping in view the economic development of the country,

    to prevent practices having appreciable adverse effect on competition;

    to promote and sustain competition in trade and industry:

    to protect the interest of consumers;

    to ensure freedom of trade carried on by the participants in markets in India;

    Objectives to be achieved through the establishment of the Competition Commission of

    India (CCI).

    OBJECTIVE

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    AMENDMENT OF 2006

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    THANK YOU- by

    Aruna