Competition Law (Final)

S U B M I T T E D S U B M I T T E D B YB Y:: A N N U B A H L A N N U B A H L L L . M ( B L L . M ( B U S I N E S S L AU S I N E S S L AW )W ) II VVTT HH  _{S E M E S T E R  S E M E S T E R} A I A L S A I A L S

REGULATION OF UNFAIR

REGULATION OF UNFAIR

TRADE PRACTICES UNDER

TRADE PRACTICES UNDER

COMPETITION ACT 2002

COMPETITION ACT 2002

TABLE OF CONTENTS

TABLE OF CONTENTS

Introduction Introduction Chapter-1:C

Chapter-1:Competition Law in ompetition Law in IndiaIndia Chapter-2:Ap

Chapter-2:Application of plication of Competition Act.Competition Act. Chapter-3:Re

Chapter-3:Regulatory gulatory frameworkframework Chapter-4:Unfair Trade Practices Chapter-4:Unfair Trade Practices Chapter-5:Re

Chapter-5:Regulation of gulation of Unfair TUnfair Trade rade PracticesPractices Conclusion and Suggestion

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 the

existence and regulation of competition and

monopolies.

COMPETITION LAW IN INDIA

 Historical background for Competition Law.  Need of Competition Law.

 Competition Policy

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

NEED OF COMPETITION LAW

 India has become one of the world’s  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

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

APPLICATIONS OF COMPETITION ACT

 Anti competitive agreements. (Section-3)  Abuse of dominance. (Section-4)

 Combinations regulation. (Section-5 & 6)  Competition advocacy. (Section-49)

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.

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

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

'combinations‘ and require prior notification and approval where such provisions are applicable.

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

REGULATORY FRAMEWORK

 Constitution.

 Powers and Duties.

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 sustain competition, protect the interests of consumers and ensure freedom of trade in the markets of India.

COMPETITION APPELLATE TRIBUNAL

 The Central Government has set up the Appellate Tribunal

on 15th May, 2009 to hear and dispose of appeals against any decision made or order passed by the Competition Commission of India.

UNFAIR TRADE PRACTICES (SEC-36 A)

A trade practice which, for the purpose of promoting any sale, use or supply of any goods or services, adopts unfair method.

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 common

detriment .



Restrictive trade practices [Section-2(o)]

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

REGULATION OF

UNFAIR TRADE PRACTICES

 Regulations for merger control

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 are

a 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 with courts of general jurisdiction.

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 likely

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.