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Competition Act

The document discusses India's Competition Act of 2002, which established a commission to promote competition and prevent anti-competitive practices. It aims to protect consumer interests, ensure economic growth and development, and preserve democratic principles. The act prohibits anti-competitive agreements between enterprises, abuse of dominant market positions, and potentially anti-competitive mergers. It also advocates for competition to create public awareness and promote efficiency. Some key cases involving the Competition Act are highlighted.

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Kritika T
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140 views

Competition Act

The document discusses India's Competition Act of 2002, which established a commission to promote competition and prevent anti-competitive practices. It aims to protect consumer interests, ensure economic growth and development, and preserve democratic principles. The act prohibits anti-competitive agreements between enterprises, abuse of dominant market positions, and potentially anti-competitive mergers. It also advocates for competition to create public awareness and promote efficiency. Some key cases involving the Competition Act are highlighted.

Uploaded by

Kritika T
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 PPTX, PDF, TXT or read online on Scribd
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Competition Act

2002
Competition what
 A situation in the market , in which seller
independently strive for buyer patronage to
achieve business objectives such as profits
, sales & market share .
 It is the foundation of an efficiently working
market system.
Competition –why
 The ultimate objective of competition is to secure
the interest of the consumer – it empowers the
consumer, best guarantee for consumer protection.
 It is a means of reducing cost &improving quality.
 It also implies an open market where shortage are
rapidly estimated through the best allocation of
resources.
 It accelerates growth &development; preserves
economic& political democracy.
Competition policy
 Competition policy is defined as those govt.
measures that affect the behavior of enterprises
& structures of the industry . It is to promote
efficiency & maximize welfare(sum of
consumers ,surplus and producers , surplus &taxes
collected by the govt. ).
Competition policy goals
 Preservation and promotion of the
competitive process .
 Efficiency in production & allocation of goods &
services .
 Innovation & adjustment to technological
change.
 Sustained economic growth .
The New Law
 A new law called competition act 2002 has been
enacted to replace the extant law ,MRTP Act 1969 .
 The law was challenged in the supreme court on
the ground that the chairperson should only be
from the judiciary .
 The new law has been amended on 10 sep
2007 by the parliament .
Competition Act - Objective
 Competition act ,2002 notified in Jan. 2003 . Stated
objective in preamble is to provide “for
establishment of commission .’’
 To prevent practices having appreciable
adverse effect on competition .
 To promote & sustain competition in
market .
 To protect the interest of the consumers .
 To ensure freedom of trade carried on by
other participants in markets, in India .
Main F e a t u r e s

1 . Anti competition agreement


 Sec.3 of the act deals with agreement among
enterprises or persons , AOP, which cause or likely to
cause appreciable adverse effect on competition.
The act deal with following kind of agreement.
• Horizontal agreement
• Vertical agreement
2. Abuse of dominant
position(section4)

 Unlike MRTP law, the act does not frown on


dominance by market players .but the abuse of
‘Dominance’ or ‘Dominant position’ means a
position of strength, enjoyed by an enterprise, in
the relevant market , in India .
3 . Mergers and Acquisition
(Section5&6)
 Combination include acquisition of shares,
acquiring of control &mergers n
amalgamations. These combinations can be
horizontal type of combination that has very high
potential to thwart competition when compared
to other kinds of combinations.
4. Competition advocacy
(Section 49)
 The commission shall take suitable measures to:
o Promote competition advocacy
o Create public awareness.
o Impact training about competition issues.

 The commission shall opinion or a reference from


the central govt. on a policy /law of competition
not binding .
Competition Act Cases
• Yashoda Hospital And Research vs Indiabulls
Financial Services ... on 22 March, 2011
• Consumers Guidance Society vs Hindustan Coca
Cola Beverages ... on 23 May, 2011
• Sh. Dhanraj Pillay And Others vs M/S Hockey India
Main Order , Per R. ... on 31 May, 2013
• Google Inc. & Ors vs Competition Commission Of
India & ... on 27 April, 2015

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