This document provides an overview of competition law and policy in India. It outlines the objectives of the Competition Act of 2002, which are to promote economic efficiency and protect consumers from abuse of market power. The Act established the Competition Commission of India (CCI) to prevent anti-competitive practices. The CCI regulates anti-competitive agreements, abuse of dominant market positions, and mergers and acquisitions. It can impose penalties on firms that violate the Act. The Competition Act updated and replaced the older Monopolies and Restrictive Trade Practices Act to align Indian competition law with the country's post-1991 economic liberalization policies.

1. Competition Act,
2002
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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
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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”
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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
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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
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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.
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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.
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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).
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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
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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
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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.
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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.
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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
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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.
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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.
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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
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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.
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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
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