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Silent features of competition act

The Competition Act, 2002 in India aims to promote market competition and protect consumer interests through various provisions, including the prohibition of anti-competitive agreements and regulation of mergers. It establishes the Competition Commission of India (CCI) as an independent body with the authority to investigate, penalize, and advocate for competition. The act also includes a leniency policy for cooperating enterprises and outlines penalties for violations, along with a civil remedy for affected parties.

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Pooja Yadav
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4 views

Silent features of competition act

The Competition Act, 2002 in India aims to promote market competition and protect consumer interests through various provisions, including the prohibition of anti-competitive agreements and regulation of mergers. It establishes the Competition Commission of India (CCI) as an independent body with the authority to investigate, penalize, and advocate for competition. The act also includes a leniency policy for cooperating enterprises and outlines penalties for violations, along with a civil remedy for affected parties.

Uploaded by

Pooja Yadav
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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The Competition Act, 2002, enacted in India, is a crucial legislation that focuses on fostering

competition in the market and safeguarding consumer interests. This act incorporates several
key features to achieve its objectives effectively:

1. Anti Agreements: Any individual or enterprises shall not deal in production supply or
distribution that may cause a negative impact regarding competition in India. Any existence of
such agreements is considered illegal.
2. Abuse of dominant position: In the event, an enterprise or an associated individual, it is found
to indulge in practices that are unfair or discriminatory in nature shall be considered an abuse of
dominant position. If a party is found to be in abuse of its position, then they will be subjected to
an investigation from the concerned authorities.
3. Combinations: As per the act a combination is defined as terms which lead to acquisitions or
mergers. But should such combinations cross the limits as put forth by the Act, then the parties
involved would be under the scrutiny of the Competition Commission of India.
4. Competition Commission of India: The Competition Commission of India is an independent
body with the powers to enter into contracts and should the contracts be broken they can sue
the parties involved. The Commission consists of a maximum of six members who are tasked
with sustaining and promoting the interests of consumers in order to foster an ideal environment
for economic competition.

1. Prohibition of anti-competitive agreements: The act prohibits any agreement between


enterprises that causes or is likely to cause an appreciable adverse effect on competition in
India.

2. Regulation of combinations: The act regulates mergers, acquisitions, and amalgamations of


enterprises if they result in or are likely to result in an appreciable adverse effect on competition.

3. Consumer welfare: The act prioritizes consumer welfare and considers its impact on all
competition-related decisions.

4. Establishment of Competition Commission of India (CCI): The act establishes the CCI as an
independent statutory body to enforce and implement the provisions of the act.

5. Power to investigate and penalize: The CCI has the power to investigate and impose penalties
on enterprises for anti-competitive practices.

6. Leniency policy: The act provides a leniency policy for enterprises that cooperate with the CCI
in its investigation of anti-competitive practices.

7. Appeal process: The act provides for an appeal process to the Competition Appellate Tribunal
for enterprises that are dissatisfied with the CCI’s decisions.

8. Types of anti-competitive practices: The act prohibits anti-competitive practices such as


abuse of dominant position, price fixing, market allocation, and collusive bidding.

9. Competition advocacy: The CCI has the mandate to promote and advocate for competition in
the market, including through education and outreach programs.

10. Penalties: Penalties for contravening the provisions of the act include fines up to 10% of the
enterprise’s average turnover for the preceding three financial years.

11. Compensation for damages: The act provides for a civil remedy for contraventions of the
provisions of the act, including compensation for damages to parties affected by anti-
competitive practices.

12. Sou Moto: CCI’s Director General who is appointed by the CG can conduct Suo moto and
levies punishment to those firms which affect the market in a negative way.

13. Limitation period: The act has a limitation period of three years for filing complaints with the
CCI.

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