This document discusses the progression from the Monopolies and Restrictive Trade Practices (MRTP) Act to the Competition Act, and provides details on:
- The MRTP Act focused on preventing concentration of economic power and controlling monopolies, while the Competition Act prohibits monopolistic, restrictive, and unfair trade practices with the goal of promoting competition.
- It defines monopolistic, restrictive, and unfair trade practices and provides examples. There was a need to substitute the MRTP Act due to shortcomings identified by the Raghavan Committee.
- Key factors in the progression include a shift from controlling economic power to preventing anti-competitive practices, recognition of abuse of dominant position, removal of registration requirements, and
National Webinar at the Centre for Corporate and Competition Law at Symbiosis Law School, Hyderabad on the topic ”Abuse of Dominance in Competition Law” on 27th August, 2021 by Shri Dhanendra Kumar, 1st Chairperson, Competition Commission of India (CCI).
National Webinar at the Centre for Corporate and Competition Law at Symbiosis Law School, Hyderabad on the topic ”Abuse of Dominance in Competition Law” on 27th August, 2021 by Shri Dhanendra Kumar, 1st Chairperson, Competition Commission of India (CCI).
Presentation on salient features and provisions of the Competition Act in India as a part of coursework
Course - MMS/MBA
Semester - 2
Subject - Business Laws
Ppt on Competition Act, 2002 presented on 17th May 2015 at Chinmay Tutorials by CS Professional Students Abhishek Agarwal, Aditya Rana, Sakshi Gupta, Shreya Chaturvedi, Shipra Pareek
A PRESENTATION ON COMPETITION ACT, 2002 WITH RECENT AMENDEMENTS. PRESENTED BY MADHUSUDAN NARAYA, STUDENT OF MBA AT NATIONAL INSTITUTE OF TECHNOLOGY, DUGAPUR, WEST BENGAL.
THIS TOPIC IS NECESSARY FOR MARKETING PEOPLE AND THE SLIDE CONTAINS THE CASES ALSO !!
Competition Law seeks to protect the process of competition for the ultimate benefit of the citizens, allowing for lower prices, better products and choices for consumers.
As a part of the advocacy efforts of the Competition Commission of India(CCI),a presentation to explain the provisions of the Competition Act, 2002, in so far as they relate to the abuse of dominant position in a conference in collaboration with Kerala High Court in Kochi.
competition and its types, ways of competition.
determination of dominant position.
regulation of combinations, competition advocacy.
exceptions and risks- impact on companies.
Presentation on salient features and provisions of the Competition Act in India as a part of coursework
Course - MMS/MBA
Semester - 2
Subject - Business Laws
Ppt on Competition Act, 2002 presented on 17th May 2015 at Chinmay Tutorials by CS Professional Students Abhishek Agarwal, Aditya Rana, Sakshi Gupta, Shreya Chaturvedi, Shipra Pareek
A PRESENTATION ON COMPETITION ACT, 2002 WITH RECENT AMENDEMENTS. PRESENTED BY MADHUSUDAN NARAYA, STUDENT OF MBA AT NATIONAL INSTITUTE OF TECHNOLOGY, DUGAPUR, WEST BENGAL.
THIS TOPIC IS NECESSARY FOR MARKETING PEOPLE AND THE SLIDE CONTAINS THE CASES ALSO !!
Competition Law seeks to protect the process of competition for the ultimate benefit of the citizens, allowing for lower prices, better products and choices for consumers.
As a part of the advocacy efforts of the Competition Commission of India(CCI),a presentation to explain the provisions of the Competition Act, 2002, in so far as they relate to the abuse of dominant position in a conference in collaboration with Kerala High Court in Kochi.
competition and its types, ways of competition.
determination of dominant position.
regulation of combinations, competition advocacy.
exceptions and risks- impact on companies.
Understanding Philippine Competition LawGus Agosto
The enactment of Philippine Competition Act or Republic Act 10667 signifies the new era in Philippine landscape. It will help in promoting competition thru elimination monopolies, cartels and other unfair business practices that run against consumers welfare.
completion law 2002 FOR CA,CMA,CS ,MBA,BBA,BCOM,MCOM,,PROFESSIONAL
All businesses have a duty to act lawfully, but there are more practical reasons why compliance with competition law is particularly important.
On a broad level, the main aim of competition law is to ensure that markets remain competitive
• The Competition Act, 2002 was passed to encourage competition in markets in India.
• The Competition Act broadly covers anti-competitive agreements, abuse of dominance and regulation of combinations.
• During combinations, i.e mergers or takeovers, the businesses of the transferor and transferee are to be studies from the point of view of anti-trust aspects(i.e Comeptition aspects). This process is competition law due diligence.
• Competition law due diligence involves examination of various agreements, check into the companies dominace and its’ abuse if any
Consumer Protection Act &Competition Act 2002: Background, definitions-consumer,consumer dispute,complaint,deficiency,service,consumer protection council,consumer redressal agencies,district forum,state commission and national commission;
Competition Act: Meaning and scope,salient features, terms, competition commission of India,offences and penalties under the act.
How to Obtain Permanent Residency in the NetherlandsBridgeWest.eu
You can rely on our assistance if you are ready to apply for permanent residency. Find out more at: https://immigration-netherlands.com/obtain-a-permanent-residence-permit-in-the-netherlands/.
In 2020, the Ministry of Home Affairs established a committee led by Prof. (Dr.) Ranbir Singh, former Vice Chancellor of National Law University (NLU), Delhi. This committee was tasked with reviewing the three codes of criminal law. The primary objective of the committee was to propose comprehensive reforms to the country’s criminal laws in a manner that is both principled and effective.
The committee’s focus was on ensuring the safety and security of individuals, communities, and the nation as a whole. Throughout its deliberations, the committee aimed to uphold constitutional values such as justice, dignity, and the intrinsic value of each individual. Their goal was to recommend amendments to the criminal laws that align with these values and priorities.
Subsequently, in February, the committee successfully submitted its recommendations regarding amendments to the criminal law. These recommendations are intended to serve as a foundation for enhancing the current legal framework, promoting safety and security, and upholding the constitutional principles of justice, dignity, and the inherent worth of every individual.
A "File Trademark" is a legal term referring to the registration of a unique symbol, logo, or name used to identify and distinguish products or services. This process provides legal protection, granting exclusive rights to the trademark owner, and helps prevent unauthorized use by competitors.
Visit Now: https://www.tumblr.com/trademark-quick/751620857551634432/ensure-legal-protection-file-your-trademark-with?source=share
Military Commissions details LtCol Thomas Jasper as Detailed Defense CounselThomas (Tom) Jasper
Military Commissions Trial Judiciary, Guantanamo Bay, Cuba. Notice of the Chief Defense Counsel's detailing of LtCol Thomas F. Jasper, Jr. USMC, as Detailed Defense Counsel for Abd Al Hadi Al-Iraqi on 6 August 2014 in the case of United States v. Hadi al Iraqi (10026)
WINDING UP of COMPANY, Modes of DissolutionKHURRAMWALI
Winding up, also known as liquidation, refers to the legal and financial process of dissolving a company. It involves ceasing operations, selling assets, settling debts, and ultimately removing the company from the official business registry.
Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
Impact of Winding Up:
Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
Winding up is a complex legal and financial process that can have significant consequences for all parties involved. It's important to seek professional legal and financial advice when considering winding up a company.
Responsibilities of the office bearers while registering multi-state cooperat...Finlaw Consultancy Pvt Ltd
Introduction-
The process of register multi-state cooperative society in India is governed by the Multi-State Co-operative Societies Act, 2002. This process requires the office bearers to undertake several crucial responsibilities to ensure compliance with legal and regulatory frameworks. The key office bearers typically include the President, Secretary, and Treasurer, along with other elected members of the managing committee. Their responsibilities encompass administrative, legal, and financial duties essential for the successful registration and operation of the society.
3. Prevention of concentration of economic power
Control of monopolies
Prohibition of Monopolistic Trade Practices
Prohibition of Restrictive Trade Practices
Prohibition of Unfair Trade Practices
3
4. 4
MONOPOLISTIC TRADE PRACTICES (MTP):-
“Such practice indicates misuse of one’s power to abuse
the market in terms of production and sale of goods and
services.”
An MTP is likely to have any of the following effects:-
• Limiting or controlling;
• Unreasonably raising profits;
• Unreasonably increasing prices;
• Adopting unfair or deceptive methods
5. 5
RESTRICTIVE TRADE PRACTICES(RTP) :
• “ The traders, in order to maximise their profits and gain
advantage in the market, often indulge in the activities
that tend to block flow of capital in production.”
•Common types of RTPs are:-
o Refusal to Deal
o Tie- Up Sales
o Exclusive Dealings
o Price Discrimination
o Resale Price Maintenance
o Market Restriction
6. 6
UNFAIR TRADE PRACTICES(UTP) :-
• “A trade practice, for the purpose of promoting sale, use or supply of
any goods or provision of services, adopts any unfair method or
unfair or deceptive practice.”
• PRACTICES WHICH ARE UTPs AS PER THE ACT ARE:-
o False representation
o False offer or Bargain Price
o Offering of gifts, prize, etc., and conducting promotional
contests
o Product Safety Standards
o Hoarding or Destruction of goods
7. 7
NEED FOR SUBSTITUTION OF MRTP ACT
BY COMPETITION ACT
• TRIGGER CAUSE
• RAGHAVAN COMMITTEE
o CHAIRMAN
o FORMATION
o REPORT
8.
9. ◘ "acquisition“ - directly or indirectly, acquiring or
agreeing to acquire—
Shares, voting rights or assets of any enterprise; or
Control over management or control over assets of
any enterprise;
◘ "cartel”
Association of Groups
Objective: To Limit, attempt to control competition
Example: Unilever and Procter & Gamble
10. "relevant market“ - the market which may be determined
by the Commission with reference to the relevant product
market or the relevant geographic market or with reference
to both the markets;
"relevant geographic market“ – a market comprising the
area in which the conditions of competition for supply of
goods or provision of services or demand of goods or
services are distinctly homogenous and can be
distinguished from the conditions prevailing in the
neighboring areas;
11. "relevant product market“ - a market comprising all those
products or services which are regarded as
interchangeable or substitutable by the consumer, by
reason of characteristics of the products or services, their
prices and intended use.
12. • Eliminate practices having appreciable adverse
effect on competition
• Promote and sustain competition
• Protect consumer’s interests
• Ensure freedom of trade carried on by other
participants in markets, in India
13. Consumers:
o Wider choice of goods, services and suppliers
o Better quality and improved value for money
Businesses
o Level playing field
o Redressal against anti competitive practices
o Competitively priced inputs
o Greater productivity and ability to compete in global markets
14. Governments (Central and State):
o Optimal realization from sale of assets
o Savings of public money in procurement
o Enhanced availability of resources for social sector
15. ◘ Anti-Competitive Agreements
◘ Abuse of Dominance
◘ Combinations Regulation
◘ Competition Commission of India
◘ Competition Advocacy
16. •Section 3 –
•the agreements which cause or are likely to cause
appreciable adverse effect on competition ("AAEC")
are anti-competitive agreements
•Case let: Eastern India Motion Pictures Association
(EIMPA)
•Such agreements may be horizontal or vertical
18. Between enterprises at the same stage of the production
chain and that is generally between two rivals
Either fixing prices or for limiting production or for sharing
markets
Presumption in the Act that such agreements cause AAEC
Caselet: Indian Oil Corporation Ltd (IOCL) during 2011-12.
Directly or indirectly results in bid rigging or collusive bidding
19. ◘ Between enterprises at different stages of the production
chain, like an arrangement between the manufacturer and a
distributor
◘ There must be an agreement amongst enterprises or
persons;
◘ The agreeing parties must be in different markets;
20. ◘ TYPES OF VERTICAL AGREEMENT:-
• Tie-in arrangement
• Exclusive distribution agreement
• Exclusive supply agreement
• Refusal to deal
• Resale price maintenance
20
21. If an enterprise or a group directly or indirectly, imposes
unfair or discriminatory:
o condition in purchase or sale of goods or service; or
o price in purchase or sale (including predatory price)
of goods or service
Limits or restricts -
o production of goods or provision of services or market
therefore; or
o technical or scientific development relating to goods or
services to the prejudice of
22. Uses its dominant position in one relevant market to
enter into, or protect, other relevant market
Imposes unfair price in purchase or sale of goods
(predatory price)
o Caselet: M/S Haridas Exports vs All India Float Glass
Mfrs. Assn. & Ors. on 22 July, 2002
22
23. Combination Covers:-
◘ Acquisition of shares, voting rights, assets etc.
◘ Mergers
◘ Amalgamations
◘ Acquiring control over another enterprise in the same line
of business.
24. ◘ Proper information about the combination must be
provided within 30days of approval by the board of
directors.
◘ Filing should be done within 7 days of Acquisition
◘ The combination provides a post filing review period of
210 days during which no combination must come into
effect.
25. The current thresholds for the combined assets/turnover of the combining
parties are as follows:
IN INDIA
APPLICABLE TO ASSETS TURNOVER
INDIVIDUAL Rs.1500 Crores Rs.4500 Crores
GROUP Rs.6000 Crores Rs.18000 Crores
IN INDIA
AND
OUTSIDE
ASSETS TURNOVER
TOTAL Minimum
Indian
component
TOTAL Minimum Indian
component out
of TOTAL
INDIVIDUAL PARTY $750 mn Rs.750cr $2250 mn Rs.2250cr
GROUP $3bn Rs.750cr $9.billion Rs.2250cr
26. ◘ An acquisition of shares or voting rights in another
enterprise- only investment no control
◘ Transfer from joint control to sole control (50%)
◘ An acquisition of stock–in-trade, raw materials, stores and
spares in the ordinary course of business.
27. ◘ An acquisition of current assets
◘ Any acquisition of shares or voting rights by a person acting
as a securities underwriter or a registered stock broker.
◘ An acquisition taking place outside India with insignificant
effect in markets in India.
28. ◘ A company which owns >25% but <50% of shares or voting rights
in another enterprise, can acquire 5% more in a financial year
without giving any notice to CCI.
◘ Any acquisition that results in more than 25% voting rights
requires a notice to be given to CCI.
◘ An exception of "enterprise jointly controlled by enterprises that
are not part of the same group" has been added.
29. Establishment
◘ March 2009
◘ perpetual succession and a common seal
◘ Head office –decided by Central Government
Composition
◘ Chairperson & Minimum 2 and maximum 6 other Members appointed by
the Central Government.
◘ Eligibility
◘ whole-time Members.
Extension of the executive powers
◘ Appointment Director General / others for assisting in conducting
enquiries.
30. Penalties For :
Non compliance with the orders
Non compliance with the orders / non payment of fine
Non-furnishing of information on combinations
Making false statement or omission to furnish material
information
Power to impose lesser penalty
Crediting sums realised by way of penalties to
Consolidated Fund of India
31. ADVOCACY PROVISIONS IN THE
COMPETITION ACT:
• Under Section 49 (1), Central Govt. or State Govt.
while formulating a law or policy may make a
reference to the Commission.
• Under Section 49 (3), The Commission is mandated
to take suitable measures for the promotion of
competition advocacy, creating awareness and
imparting training about the competition issues.
31
32. CCI assumes the role of competition advocacy
foster conditions leading to competitive market
Develop relationship with the Ministries and Departments of the
Government
Encourage debate on competition and promote a better and more
informed economic decision making
Be open and transparent
Competition advocacy: Enhanced by establishing good media
relations
33. Undertake programs and activites for promotion
of competition advocacy and create awareness
in India as well as abroad
Constitute Advocacy Advisory Committee(s)
Develop and disseminate advocacy literature
34. 34
Proactive Interactions with with the Central and State
Governments, civil society – concerned with competition
matters
The Commission may undertake studies and market
research
May encourage academic and professional institutions to
include competition law and policy
35. FACTORS MRTP COMETITION
1] Time Pre Reforms Post Reforms
2] Objective Prevent concentration of
economic powers
Prevent practices having an
adverse effect on
competition
3] Offences recognized Lists out 14 offences Lists out 4
4] Powers Cease and Desist orders Prevent and punish
5] Fund Did not provide for the
formation of fund
Provides competition fund
6] Entity Status Status of dominant position
is considered bad
Status of abuse of dominant
position is considered bad
7] Registration General registration is
mandatory
No such requirement
36. FACTORS MRTP COMPETITION
8] Role of the
commission
Only Advisory Can initiate suomotu
and levy penalties
9] Focus Consumer Interest Public
10] Appointment of
Chairman
Central Government Committee consisting
of retired judiciary,
person with
professional expertise
etc.
38. World Not A Single Platform For
Trade And Commerce
World Trade Organization (WTO) promotes global multilateral free
trade
Trade Barriers: tariffs, quotas, and nontariff barriers and Trading
Blocks exist.
Hamper open Free Trade, curb competition and try to create
monopolies.
Major Trading Blocs
oASEAN (Association of Southeast Asian Nations)
oEuropean Union (EU)
oNAFTA (North American Free Trade Agreement)
oSAARC (South Asian Association for Regional Cooperation)
40. Introduction
Antitrust :
The two central rules set out in Functioning of the European
Union.
First, agreements between two or more independent
market operators which restrict competition are
prohibited.
Second , it prohibits firms holding a dominant
position on a determined market.
41. Cartel :
The leniency policy encourages companies to hand
over inside evidence of cartels to the European
Commission
Mergers :
Harm consumers through higher prices, reduced choice
or less innovation.
The objective - prevent harmful effects on competition.
Examines the mergers if the annual turnover of the
combined businesses exceeds specified thresholds in
terms of global and European sales.
42. Liberalization :
Opening of the services such as transport, energy, postal
services and telecommunications to competition.
Benefits-
lower prices
New/Alternative services (more efficient and consumer-
friendly than before. This helps to make economy more
competitive.)
State Aid :
Prohibited unless it is justified by reasons of general
economic development.
Role of European Commission is of ensuring that
State aid complies with EU rules.
43. International :
The integration of national economies also enables
companies to organize cartels and other anti-competitive
practices on an international or even global basis.
Cooperation with other competition authorities takes place
at two levels:
1. Bilateral
2. Mutilateral
44. US Antitrust Law—aka competition law
Originated from trusts in US in 1800s which were set up in
the US in the late 1800s to control entire markets for
petroleum, transport, banking, rail and other industry sectors.
Trusts undermined free market economics by restricting
competition, and the US antitrust laws were enacted to
redress this issue.
Antitrust laws composed of – widely drafted antitrust
statutes – given meaning through case law.
45. 45
PURPOSE
To promote effective and stable competition and prohibit
anti-competitive monopolists and conspiracies. Following
help understand the importance of protecting ones
company and the significance of managing ones risk
1. Civil antitrust punishments
2. Criminal antitrust punishments
Price-fixing
Horizontal market allocations
Bid-rigging
Other antitrust wrongdoing.
46. 1. Monopolisation
• Monopolisation itself
• Attempted monopolisation
• Conspiracy to monopolise.
2. Conspiracy to restrain trade
• conspiracies to retain trade itself
• “per se” restraints of trade
A third offence, “abuse of dominant position.”
• It is not forbidden under US antitrust laws expressly, it is
nonetheless part of the competition laws of the EU and
Canada and can therefore affect US businesses who function
internationally.
49. CCI imposes Penalty of Rs. 62.31 Crores
on Three Companies for Forming a Cartel
in a Tender for Indian Railways.
The penalty has been imposed after CCI
took up a case of suo motto basis based
on information given by M/s Diesel Loco
Modernisation Works(DLMW), a unit of
Indian Railways at Patiala, Punjab. The
case relates to a DLMW tender wherein
the three vendors quoted identical rates
for feed valves.
49
50. Progression from MRTP to Competition
World is not the single platform for trade
and commerce.
50