Competition Law (Final)

8/12/2019 Competition Law (Final)

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S U B M I T T E D B Y:

A N N U B A H L

L L . M ( B U S I N E S S L AW )I V TH S E M E S T E R

A I A L S

REGULATION OF UNFAIR

TRADE PRACTICES UNDERCOMPETITION ACT 2002


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TABLE OF CONTENTS

Introduction

Chapter-1:Competition Law in India

Chapter-2:Application of Competition Act.

Chapter-3:Regulatory framework

Chapter-4:Unfair Trade Practices

Chapter-5:Regulation of Unfair Trade Practices

Conclusion and Suggestion


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INTRODUCTION

In the wake of economic liberalization and

widespread economic reforms, the Competition

Act 2002 was enacted . The Competition Act has

been designed to deal with matters relating to theexistence and regulation of competition and

monopolies.


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COMPETITION LAW IN INDIA

Historical background for Competition Law.

Need of Competition Law.

Competition Policy

Repealing of MRTP Commission.


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HISTORICAL BACKGROUND

Law governing competition is found in over two millennia

of history.

The formal study of "competition began in earnest during

the 18th century. Modern competition law begins with the competition law

enacted by Canada in 1889 followed by the United States

legislation of the Sherman Act of 1890 and the Clayton

Act of 1914. Articles 38 and 39 of the Constitution of India triggered to

Competition Law in India.


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NEED OF COMPETITION LAW

India has become one of the worlds fastest growing

economies.

MRTP Act, 1969 had become obsolete in certain respects

in the light of international economic developments. Raghavan Committee recommended for the new

competition policy in India.


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REPEALING OF MRTP COMMISSION

By the Competition (Amendment) Ordinance, 2009, the

powers MRTP Commission was ceased.

This Ordinance amended Section 66 of the Competition

Act. A period of 2 years was set to continue to exercise

jurisdiction and powers of MRTP Commission.


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APPLICATIONS OF COMPETITION ACT

Anti competitive agreements. (Section-3)

Abuse of dominance. (Section-4)

Combinations regulation. (Section-5 & 6)

Competition advocacy. (Section-49)


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ANTI COMPETITIVE AGREEMENTS

An agreement in respect of the production, supply,

distribution, storage, acquisition or control of goods etc,

which causes an "appreciable adverse effect on

competition within India, is an 'anti-competitive

agreement'.

The Competition Act prohibits anti-competitive

agreements and declares that such agreements shall be

void.


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ABUSE OF DOMINANCE

An enterprise is free to grow as large as it pleases or

achieve as big a market share as it can.

Abuse of a dominant position occurs when a dominant

firm in a market is intended to eliminate a competitor. The Competition Act does not frown on dominance as

such.


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COMBINATIONS REGULATION

The term 'combination' for the purposes of the

Competition Act is defined very broadly.

Combination includes acquisition of shares, control,

voting rights or assets, mergers and amalgamations. Sections 5 and 6 of the Competition Act are to regulate

'combinationsand require prior notification and approval

where such provisions are applicable.


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COMPETITION ADVOCACY

The ability of the competition office to provide advice,

influence and participate in government economic and

regulatory policies in order to promote more competitive

industry structure is called Competition Advocacy.

The provisions for Competition Advocacy are given under

Section 49 of the Competition Act.


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REGULATORY FRAMEWORK

Establishment of Competition Commission.

Constitution.

Powers and Duties.

Competition Appellate Tribunal.


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COMPETITION COMMISSION:

CONSTITUTION, POWERS & DUTIES

To achieve the objectives of the Competition Act the

Competition Commission of India has been established

from 14 October 2003. CCI consists of a Chairperson and 6 Members appointed

by the Central Government.

The duty of the Commission is to eliminate practices

having adverse effect on competition, promote and sustaincompetition, protect the interests of consumers and ensure

freedom of trade in the markets of India.


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COMPETITION APPELLATE TRIBUNAL

The Central Government has set up the Appellate Tribunal

on 15thMay, 2009 to hear and dispose of appeals against

any decision made or order passed by the Competition

Commission of India.

Its Headquarter is at New Delhi.


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MTP & RTP

Monopolistic trade practices [Section-2(i)]

An MTP is a trade practice which has

maintaining the prices of goods at an unreasonable level by limiting,

reducing or otherwise controlling the production or unreasonably preventing or lessening competition in the production or

limiting technical development or capital investment to the commondetriment .

Restrictive trade practices [Section-2(o)]

A practice which tends to obstruct the flow of capital orresources into the stream of production is an RTP.


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REGULATION OF

UNFAIR TRADE PRACTICES

Regulations for merger control

Part Enforcement without Merger Control


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REGULATIONS FOR MERGER CONTROL

The Combination Regulations are to take effect from June

1, 2011 to supplement the notification of Sections 5 and 6

of the Competition Act, 2002.

Mergers are a normal activity within the economy and area means for enterprises to expand business activity.

The administration of merger control is generally carried

out by specialist statutory bodies, often being entrusted to

quasi judicial specialist tribunals in conjunction withcourts of general jurisdiction.


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PART ENFORCEMENT WITHOUT MERGER CONTROL

Section 5 explains the types of acquisitions, mergers and

amalgamations that are combinations for the purpose of

the Act.

Section 6 prohibits combinations which causes or is likelyto cause an appreciable adverse effect on competition


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CONCLUSION & SUGGESTIONS

Competition is accepted worldwide as the life blood of

the market economy. It spurs innovation and higher

productivity leading to accelerated economic growth; to

the consumers it brings the benefit of lower prices,wider choices and better services. But competition

should be done in a fair manner and necessary reforms

in the legal system with regard to competition law

should be appreciated.


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Thank you

Competition Law (Final)

Documents

Transcript of Competition Law (Final)