Antitrust Laws


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What is the meaning of "Antitrust", its origin & Status in India. This PPT includes basics of Antitrust laws.

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Antitrust Laws

  1. 1. Anti trust Laws A Snap Shot Prepared by: Hari Krishan (CS- Final) Hari Krishan - Antitrust Laws 1
  2. 2. Introduction• Way back in the 1800s, there were several giant businesses known as "trusts." Hari Krishan - Antitrust Laws 2
  3. 3. • They controlled whole sections of the economy, like railroads, oil, steel, and sugar. These trusts were monopolies, meaning they combined all the competition into one massive company that could dictate their price! Hari Krishan - Antitrust Laws 3
  4. 4. •President Theodore Roosevelt"busted," or broke up, many trusts Byenforcing "antitrust" laws.•The goal of this law,and the ones thatcame later, was toprotect consumers by promotingcompetition in the marketplace. Hari Krishan - Antitrust Laws 4
  5. 5. The Sherman Act• Passed in 1890• Anti CompetitiveAgreements madeProhibited by this. Hari Krishan - Antitrust Laws 5
  6. 6. Antitrust Milestone• “Trusts” got busted• Cartels controlling prices and production got reduced Hari Krishan - Antitrust Laws 6
  7. 7. The loophole• Instead forming “Trusts” they started getting combined through “Merger & Acquisitions” Hari Krishan - Antitrust Laws 7
  8. 8. The Clayton Act & The FTC Act• Both passed in 1914• Special agency “FTC” formed to monitor fair practice in market• Unfair trade practice in anyform prohibited• FTC is still in force in America Hari Krishan - Antitrust Laws 8
  9. 9. Competition Commission of India “CCI” Competition Act, 2002 (amended by theCompetition Amendment Act, 2007 Hari Krishan - Antitrust Laws 9
  10. 10. Legislature Competition Act, 2002 CompetitionExecutive Commission of India (“CCI”) Competition Judiciary Appellate Tribunal (“COMPAT”) Hari Krishan - Antitrust Laws 10
  11. 11. Overview of the act (As on May 09, 2012)66 • Sixty Six Sections12 • Twelve Rules12 • Twelve Regulations12 • Twelve Notifications Hari Krishan - Antitrust Laws 11
  12. 12. Anti- competitive agreements (Sec. 3) CCI 2002Regulation Abuse of of dominantCombinatio positionn (Sec. 5 & (Sec. 4) 6) Hari Krishan - Antitrust Laws 12
  13. 13. Sec. 3 Enforcement Sec. 4CCI 2002 Sec 5 & 6 Advocacy Sec. 49 Hari Krishan - Antitrust Laws 13
  14. 14. Anti-competitive agreements (Sec. 3) Any production, sup withagreemen with respect ply, distribution respect to to etc.. t And have Is “Aappreciable which isProhibited adverse effect anti- on competitive & Void competition” Hari Krishan - Antitrust Laws 14
  15. 15. Abuse of dominance (Sec. 4)Not dominance but its abuse is prohibited.Abuse occurs when an enterprise uses itsdominant position in the relevant marketin an exclusionary and/orexploitative manner. Hari Krishan - Antitrust Laws 15
  16. 16. Regulation of Combinations (Sec. 5)2 Conditions for regulation of Combination If definition of combination is applicable; & If monetary threshold is crossed Hari Krishan - Antitrust Laws 16
  17. 17. •Any acquisition of control, shares, voting rightsor assets of any enterprise; or•Any acquisition of control by a person over anenterprise, where such person already hasdirect/indirect control over another enterprise in asimilar business; or•Any merger or amalgamation of enterprises Hari Krishan - Antitrust Laws 17
  18. 18. Monitory limits Acquiring „group‟ and target jointly haveIn India In India or outsideAssets over INR 1,500 crore Assets over USD 750 million (of which at least INR 750 crore in India) OR Turnover above USD 2,250 million (of whichTurnover above INR 4,500 crore at least INR 2,250 crore In India) Parties to the combination jointly haveIn India In India or outside Assets USD 3 billion (of which at least INRAssets over INR 6,000 750 crore In India) ORTurnover above INR 18,000 crore Turnover above USD 9 billion (of which at least INR 2,250 crore in India) Hari Krishan - Antitrust Laws 18
  19. 19. Sources:•• Hari Krishan - Antitrust Laws 19
  20. 20. Hari Krishan - Antitrust Laws 20