Background of competition act
The competition Act.
Competition Commission of India
Duties, Powers , Functions and
Distinction between MRTP and
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
BENEfITs Of COmpETITION
Companies : Efficiency, cost-saving operations, better
utilization of resources, etc.
The Consumer : Wider choice of goods at competitive
The Government : Generates revenue
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
Post 1991 policy of Liberalization, Privatization and
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.
It extends to the whole of India except the State of Jammu and
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.
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).
oBJeCtiVeS oF Competition law
Promoting economic efficiency in both static and
Protecting consumers from the undue exercise of
Facilitating economic liberalization, including
privatization. Deregulation and reduction of external
Preserving and promoting the sound development of a
Ensuring fairness and equity in market place
Protecting the ‘public interest’ including in some
competitiveness and employment
Protecting opportunities for small and medium
• 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.
Abuse of dominAnt
• "dominant position" means a position of strength,
enjoyed by an enterprise, in the relevant market, in India,
which enables it to—
operate independently of competitive forces
prevailing in the relevant market; or
affect its competitors or consumers or the relevant
market in its favour.
Regulation of combinations
No person or enterprise shall enter into a
combination which causes or is likely to
cause an appreciable adverse effect on
GOVERNMENT BY NOTIFICATION MAY EXEMPT FROM THE COMPETITION
ANY CLASS OF ENTERPRISES IN THE INTEREST OF NATIONAL
ANY PRACTICE/AGREEMENT ARISING OUT OF INTERNATIONAL
ANY ENTERPRISE PERFORMING A SOVEREIGN FUNCTION ON BEHALF OF
DIFFERENT PROVISIONS FROM DIFFERENT DATES IF, NEED BE.
Competition Commission Of India
Central Government has appointed CCI as a governing
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
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.
Composition of Commission
The Commission has a Chairperson and six
The Chairperson and other Members of the
Commission shall be appointed by the Central
Selection Committee includes Chief Justice of
India or his nominee, Secretary in the Ministry of
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.
OLD WINE OR NEW WINE ?
BASED ON PRE-1991 LPG
BASED ON POST-1991 LPG
PREMISED ON SIZE
PREMISED ON BEHAVIOUR/
COVERS UNFAIR TRADE
UNFAIR TRADE PRACTICES
EXCLUDED (COVERED UNDER
APPOINTMENTS BY A
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