2. 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.
3. 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.
4. 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. ) .
5. 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 .
6. 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 .
7. 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 .
8. Main features :
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
9. 2. Abuse of dominant position
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 .
10. 3. Regulation of combination
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.
11. 4. Competition advocacy
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 .
