the competition act 202


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the competition act 202

  1. 1. Motion PictureAssociation, Delhi
  2. 2. The case study relates to information filed by UTV Software Communications Limited (the informant) alleging the Motion Pictures Association , Delhi (opposite party) has abused its dominant position in contravention of provisions of section 4 of the Act.
  3. 3. Motion Picture Association, Delhi • The Motion picture association of Delhi is registered under section 25 of the Companies Ac, 1956. The MPA as a body has been formed to promote and assist the business of production, distribution , exhibition of films and also to provide a common platform to its members to meet and address their problems.
  4. 4. Allegations • Abuse of Dominant Position. • Forces to sign Producer distributor certificate. • Acquiring Form. • Restricts performance of business vide its MOA.
  5. 5. • Penalty. • Anti – competitive with regards to registration of film. • Problems created for release of ‘Peepli Live’ and ‘No one killed Jessica’, ‘7 khoon maaf’ and ‘Dhobi Ghaat’. • Rules of body Anti-Competitive. • Restricts freedom to contract. • Unreasonable terms and conditions. • Unfair and discrimminatoory restrictions.
  6. 6. • Membership essential to carry out business smoothly. • Cessation of membership on dealing with non members. • Restrictive rules. • Prescribes pro-forma , acquiring form. • Restriction on other sources such as satellite/cable/internet etc.
  7. 7. • Tie in agreements. • Pressure through letters and circulars by MPA. • Association imposes penalty for breaking of agreement. • Activities seem to be restrictive and violative of the act.
  8. 8. Reply on behalf of MPA , Delhi • Denies all allegations. • Argues that membership is voluntary no coercion. • UTV wants to take benefits of membership as well as complain against it.
  9. 9. • No commercial activity. • Rules jointly framed by all members. • DG never mentioned UTV as its member. • No independent investigation.
  10. 10. Reply on behalf of Informant
  11. 11. • MPA formed as a body to promote the business of distribution not to dominate it. • Refusal to register voilates section 4 – abuse of dominant position. • MPA not a charitable organisation but a virtual cartel. • Three other companies have already fled complaint regarding similar malpractices.
  12. 12. Let’s Analyse The ultimate authority must always rest with the individual's own reason and critical analysis. ~Dalai Lama
  13. 13. The Jury • Issue 1 : Whether MPA is an ‘enterprise’ within the meaning of section 2(h) of the act and if the answer to this is affirmative, can its acts and conducts be said to be violative of section 4 of the act? • Issue 2: Whether the rules and regulations, acts and conducts of MPA are subject matter of examination under section # of the act? • Issue 3: Whether the rules , regulations and byelaws of MPA are anti-competitive?
  14. 14. The Order
  15. 15. The MSMED Act 2006
  16. 16. MSME-India’s bloodline • The Importance of Small and Medium Enterprises (SMEs) in any economy cannot be overlooked as they form a major chunk in the economic activity of nations.
  17. 17. ~They have unique advantages due to:- • their size • their comparatively high labor-capital ratio • need a shorter gestation period • focus on relatively smaller markets • need lower investments • ensure a more equitable distribution of national income • facilitate an effective mobilization of resources of capital and skills which might otherwise remain unutilized 
and • Stimulate the growth of industrial entrepreneurship.
  18. 18. • According to a UNIDO report, 4 supports for SMEs are generally based on three assumptions. – it sustains a broad and diversified private sector and creates employment and thus benefits the country as a whole – second, a strong SME sector will not emerge without support from the state, but they suffer disadvantages in the markets because of their size – the programs aimed at smallest enterprises, have been justified more in terms of their welfare impact than their economic efficiency.
  19. 19. Indian SME at a Glance • In India, SME sector accounts for around 95% of the industrial units, 40% of the value added in the manufacturing sector output, 34% of exports and provides direct employment to 20 million persons in around 3.6 million registered SME units.The SME sector in India contributes to about 7% of India’s GDP during 2002-03. Now, the question is, Can it overtake the invasion of foreign companies through their innovative, quality, affordable/reasonable and readily available products?
  20. 20. (small industries development bank of India)
  21. 21. We will be discussing specific measures taken by SIDBI in relation to helping MSME sector:- • promotion, financing and development of Industries in the small scale sector and coordinating the functions of other institutions engaged in similar activities. • SIDBI retained its position in the top 30 Development Banks of the World in the latest ranking ofThe Banker, London. • It also provides funds to the professional and self-employed persons setting up small-sized professional ventures.
  22. 22. • Focus Segments of SIDBI • Manufacturing – Micro: Investment in plant & machinery up to Rs.25 lacs. – Small: Gross Machinery Investment up to Rs 5 crore. – Medium: Gross Machinery Investment less than or equal to Rs 10 crore • Service Sector Healthcare, Hospitality, leisure, entertainment, IT/IT enabled businesses, etc. (Project Cost limit up to Rs 2500 Million) • Infrastructure Sector Power, Roads, Ports,Telecom, MSME infrastructure, etc.
  23. 23. • SIDBI: Direct Loans for MSME Segment • Term Loans for MSME Units and Service Sector Entities Eligible Projects – New projects; expansion / modernization / diversification projects, marketing requirements, working capital margin, etc. of well run MSME units. – Land acquisition and construction of factory building with or without additional plant and machinery, for units relocating to industrial areas.
  24. 24. Assistance • Need based – Interest: Competitive (PLR -1 to + 2.5) – depending on the rating of the customer – Current PLR – – 12.5% – Security: Flexible, including collateral free lending for loans up to Rs.5 Million under CGTMSE (limit – has since been increased to Rs.10 Million). – Other Benefits: Dovetailing with GoI sponsored schemes such as CLCSS,TUFS, IDLSS and Food – Processing subsidy based on eligibility.
  25. 25. Main Benefits under Govt. sponsored Schemes : • Credit Linked Capital Subsidy Scheme (CLCSS): • Technology Up-gradation Fund Scheme (TUFS): • Integrated Development of Leather Sector Scheme: • Food Processing Industries: • Scheme for Energy Saving in MSME Sector (JICA – Line of Credit) • Receivables Finance Scheme (RFS) • Invoice Discounting Scheme