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Competition Act,
2002
Page 1
OUTLINE:
Objective
Background of competition act
The competition Act.
Competition Commission of India
Duties, Powers ...
COmpETITION
Is “a situation in a market in which firms or
sellers independently strive for the buyers’
patronage in order ...
BENEfITs Of COmpETITION
Companies : Efficiency, cost-saving operations, better
utilization of resources, etc.
The Consum...
BACKGROUND Of COmpETITION LAw
 MRTP Act came into force (1970), limited
provisions existed under :
– The Indian Contract ...
Cont…
 Post 1991 policy of Liberalization, Privatization and
Globalization introduced.
 MRTP Act was found inadequate to...
Competition law


It extends to the whole of India except the State of Jammu and
Kashmir.

 An Act to provide, keeping i...
Competition law
 Competition Law generally covers 3 areas:
– Anti - Competitive Agreements, e.g., cartels,
– Abuse of Dom...
oBJeCtiVeS oF Competition law
 Promoting economic efficiency in both static and
dynamic sense
 Protecting consumers from...
Cont…
 Ensuring fairness and equity in market place
transactions
 Protecting the ‘public interest’ including in some
cas...
Anti-competitive
Agreements

• No enterprise or association of enterprises
or person or association of persons shall
enter...
Abuse of dominAnt
position
• "dominant position" means a position of strength,
enjoyed by an enterprise, in the relevant m...
combinAtions
Regulation of combinations
No person or enterprise shall enter into a
combination which causes or is likely t...
eXemptions
GOVERNMENT BY NOTIFICATION MAY EXEMPT FROM THE COMPETITION
LAW
 ANY CLASS OF ENTERPRISES IN THE INTEREST OF NA...
Competition Commission Of India
 Central Government has appointed CCI as a governing
Body.
 The commission shall be a bo...
Composition of Commission
 The Commission has a Chairperson and six
members.
 The Chairperson and other Members of the
C...
PENALITIES
 If any person, without reasonable clause, fails to
comply with the orders or directions of the act, he
shall ...
OLD WINE OR NEW WINE ?
MRTP ACT

NEW LAW

 BASED ON PRE-1991 LPG

BASED ON POST-1991 LPG

PREMISED ON SIZE

PREMISED O...
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Transcript of "Lab project,competition act 2002"

  1. 1. Competition Act, 2002 Page 1
  2. 2. OUTLINE: Objective Background of competition act The competition Act. Competition Commission of India Duties, Powers , Functions and Penalties Distinction between MRTP and Competition act Page 2
  3. 3. COmpETITION Is “a situation in a market in which firms or sellers independently strive for the buyers’ patronage in order to achieve a particular business objective for example, profits, sales or market share” Page 3
  4. 4. BENEfITs Of COmpETITION Companies : Efficiency, cost-saving operations, better utilization of resources, etc. The Consumer : Wider choice of goods at competitive prices  The Government : Generates revenue Page 4
  5. 5. BACKGROUND Of COmpETITION LAw  MRTP Act came into force (1970), limited provisions existed under : – The Indian Contract Act – Directive Principles of State Policy (Nonenforceable)  The MRTP Act brought in a four-pronged thrust : – Concentration of economic power – Restrictive Trade Practices – Monopolistic Trade Practices – Unfair Trade Practices Page 5
  6. 6. Cont…  Post 1991 policy of Liberalization, Privatization and Globalization introduced.  MRTP Act was found inadequate to meet the challenges of a modern globalize economy.  Government of India in October 1999 appointed a high level Committee on Competition Policy and Law (the Raghavan Committee) to advise on the competition law in consonance with international developments.  Introduced in the year 2002 and approved by PRESIDENT on 13 july 2003. Page 6
  7. 7. Competition law  It extends to the whole of India except the State of Jammu and Kashmir.  An Act to provide, keeping in view of the economic development of the country, for the establishment of a Commission to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets, in India, and for matters connected therewith or incidental thereto. Page 7
  8. 8. Competition law  Competition Law generally covers 3 areas: – Anti - Competitive Agreements, e.g., cartels, – Abuse of Dominant Position by enterprises, e.g., predatory pricing, barriers to entry and – Regulation of Mergers and Acquisitions (M&As). Page 8
  9. 9. oBJeCtiVeS oF Competition law  Promoting economic efficiency in both static and dynamic sense  Protecting consumers from the undue exercise of market power  Facilitating economic liberalization, including privatization. Deregulation and reduction of external trade barriers  Preserving and promoting the sound development of a market economy Page 9
  10. 10. Cont…  Ensuring fairness and equity in market place transactions  Protecting the ‘public interest’ including in some cases considerations relating to industrial competitiveness and employment  Protecting opportunities for small and medium business Page 10
  11. 11. Anti-competitive Agreements • No enterprise or association of enterprises or person or association of persons shall enter into any agreement in respect of production, supply, distribution, storage, acquisition or control of goods or provision of services, which causes or is likely to cause an appreciable adverse effect on competition within India. Page 11
  12. 12. Abuse of dominAnt position • "dominant position" means a position of strength, enjoyed by an enterprise, in the relevant market, in India, which enables it to— • (i) operate independently of competitive forces prevailing in the relevant market; or • (ii) affect its competitors or consumers or the relevant market in its favour. Page 12
  13. 13. combinAtions Regulation of combinations No person or enterprise shall enter into a combination which causes or is likely to cause an appreciable adverse effect on competition Page 13
  14. 14. eXemptions GOVERNMENT BY NOTIFICATION MAY EXEMPT FROM THE COMPETITION LAW  ANY CLASS OF ENTERPRISES IN THE INTEREST OF NATIONAL SECURITY/PUBLIC INTEREST.  ANY PRACTICE/AGREEMENT ARISING OUT OF INTERNATIONAL TREATY/AGREEMENT  ANY ENTERPRISE PERFORMING A SOVEREIGN FUNCTION ON BEHALF OF GOVERNMENT  DIFFERENT PROVISIONS FROM DIFFERENT DATES IF, NEED BE. Page 14
  15. 15. Competition Commission Of India  Central Government has appointed CCI as a governing Body.  The commission shall be a body corporate by the name aforesaid having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable.  The head office of the Commission shall be at such place as the Central Government may decide from time to time (New Delhi)  CCI (Competition commission of India) may also assign office in other places in India. Page 15
  16. 16. Composition of Commission  The Commission has a Chairperson and six members.  The Chairperson and other Members of the Commission shall be appointed by the Central Government.  Selection Committee includes Chief Justice of India or his nominee, Secretary in the Ministry of Corporate Affairs Page 16
  17. 17. PENALITIES  If any person, without reasonable clause, fails to comply with the orders or directions of the act, he shall be punishable with fine which may extend to rupees 1 Lac for each day during which such noncompliance occurs, subject to a maximum of rupees 10 Cr, as the Commission may determine.  If any person does not comply with the orders or directions issued, or fails to pay the fine imposed be punishable with imprisonment for a term which may extend to 3 years, or with fine which may extend to rupees 25 CR. Page 17
  18. 18. OLD WINE OR NEW WINE ? MRTP ACT NEW LAW  BASED ON PRE-1991 LPG BASED ON POST-1991 LPG PREMISED ON SIZE PREMISED ON BEHAVIOUR/ CONDUCT PROCEDURE ORIENTED COVERS UNFAIR TRADE PRACTICES (INDIVIDUAL CONSUMER INTEREST)  POLITICAL APPOINTMENTS OF CHAIRPERSON/MEMBERS RESULT ORIENTED. UNFAIR TRADE PRACTICES EXCLUDED (COVERED UNDER CONSUMER PROTECTION ACT) APPOINTMENTS BY A COLLEGIUM 18 Page 18
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