COMPETITION ADVOCACY IN
INDIA
By
Prof. Asmita Mishra (asmita.lawm59@gmail.com)
&
Prof. Navinya Kamble (navinyakamble1999@gmail.com)
©
ASMITA & NAVINYA
AGENDA:-
WHY COMPETITION LAW?
COMPETITION ACT, 2002.
WHAT IS COMPETITION
ADVOCACY?
COMPETITION ADVOCACY
AND COMPETITION ACT,
2002.
01
02
03
04
WHY
COMPETITION
LAW?
01
COMPETITION LAW GENERALLY AIMS
AT PREVENTING
PRIVATE RESTRICTIVE BUSINESS
PRACTICES THAT SIGNIFICANTLY
LESSEN COMPETITION, REDUCE
WELFARE, AND RESULT IN
INEFFICIENT USE OF RESOURCES.
COMPETITION ACT, 2002.
02
COMPETITION ACT
(HISTORICAL FOOTPRINT):-
THE MONOPOLIES AND
RESTRICTIVE TRADE
PRACTICES ACT, 1969
[MRTP ACT] WAS
REPEALED AND
REPLACED BY THE
COMPETITION ACT, 2002.
THE MRTP
COMMISSION WAS
REPLACED BY THE
COMPETITION
COMMISSION OF
INDIA.
THE
COMMENCEMENT
OF THE
COMPETITION ACT,
2002
2009 2003
KEY PROVISIONS OF THE COMPETITION ACT, 2002.
SECTION 3:
ANTI-COMPETITIVE
AGREEMENTS
SECTION 4:
ABUSE OF
DOMINANCE
SECTION 5 & 6:
COMBINATIONS
SECTION 21 & 21A:
ADVISORY
SECTION 49:
COMPETITION
ADVOCACY
— MOTTO OF THE COMPETITION ACT, 2002.
“FAIR COMPETITION FOR GREATER GOOD..”
LOCATIONS:-
BRAZIL
RUSSIA
EGYPT
01
02
03
04
05
SOUTH
AFRICA
INDIA
WHAT IS
COMPETITION
ADVOCACY?
03
COMPETITION ADVOCACY DEFINED:-
Competition advocacy connotes all the activities, endeavors undertaken by an antitrust agency to reach out to
stakeholders in order to establish a robust competition culture through dissemination of information about extant
competition laws, benefits of competition and implications of resorting to anticompetitive practices.
It refers to those activities conducted by a competition authority with the ultimate objective of promotion of culture of
compliance in all spheres of economy, by means of non-enforcements.
Competition advocacy can also be looked at as enforcement of law without intervention.
It yields maximum positive impact to the concern stakeholders with least intervention and an effective way to garner
support to attain competition policy objectives.
01
02
03
04
COMPETITION ADVOCACY:
“COMPETITION ADVOCACY” MEANS
THOSE ACTIVITIES WHICH ARE
CONDUCTED TO PROMOTE A
COMPETITIVE ENVIRONMENT FOR
ECONOMIC ACTIVITIES.
ADVOCACY IS THE ACT OF
INFLUENCING OR
SUPPORTING A
PARTICULAR IDEA OR
POLICY.
RAISING THE LEVEL OF
AWARENESS AMONG THE
PUBLIC IS AN IMPORTANT STEP
TOWARDS CREATING A
COMPETITION CULTURE WITHIN
THE COUNTRY.
EFFECTIVE IMPLEMENTATION OF ANY
POLICY AND LAW LARGELY DEPENDS UPON
THE WILLINGNESS OF THE PEOPLE TO
ACCEPT THE LAW. IN THAT SENSE
ADVOCACY ALWAYS PLAYS A VITAL ROLE IN
SECURING THE WILLINGNESS AND
ACCEPTABILITY OF ANY POLICY AND LAW.
THE COMPETITION COMMISSION
OF INDIA (CCI) IS OBLIGED TO
TAKE CHARGE OF COMPETITION
ADVOCACY IN INDIA.
RAGHVAN COMMITTEE REPORT:-
SVS RAGHAVAN COMMITTEE (2015).
The role of CCI is not merely enforcing the Competition Law.
Commission has to act the role of a competition advocate also to bring
about Government policies that lower down the barriers to entry,
promote de-regulation and trade liberalization and promote
competition in the market place.
Aim of competition is to lead more competitive market structure
without the direct intervention of the CCI.
To make successful competition advocacy programme, CCI has to
develop relationship with the Ministries and Departments of the
Government, regulatory agencies and other bodies to formulate
and administer policies CCI has to encourage debate on competition
and promote a better and more informed economic decision making.
Competition advocacy must be open and transparent to ensure
safeguard the integrity and capability of the CCI.
By establishing good media relations and explaining the role and
importance of Competition Policy/Law as an integral part of the
Government’s economic framework CCI can enhance the competition
advocacy.
KEY
STAKEHOLDERS
OF COMPETITION
ADVOCACY
CENTRAL &
STATE
GOVERNMENTS
AND PUBLIC
SECTOR
ORGANIZATIONS.
BUSINESS AND
TRADE
ASSOCIATIONS
.
PROFESSIONA
L INSTITUTES:-
ICAI, ICSI,
ICMAI.
ACADEMIA-
STUDENTS,
UNIVERSITIES,
LAW SCHOOLS
ETC.
KEY STAKEHOLDERS OF COMPETITION ADVOCACY:-
• CUSTOMISED
ADVOCACY
PROGRAMMES WITH
REGIONAL CHAPTERS.
• FOCUSED WORKSHOPS
WITH REGIONAL AND
SECTOR
ASSOCIATIONS
• COMPETITION
ASSESSMENT
• MEETINGS,
WORKSHOPS WITH
CENTRAL AND STATE
GOVERNMENTS
• THEMATIC LECTURES
• SPONSORING MOOT
COURTS ON
COMPETITION LAW
• INTERNSHIPS BY CCI
UNIVERSITIES AND
OTHER EDUCATIONAL
INSTITUTIONS.
CENTRAL & STATE
GOVERNMENTS AND
PUBLIC SECTOR
ORGANIZATIONS.
PROFESSIONAL
INSTITUTES VIZ ICAI,
ICSI, ICMAI
TRADE
ASSOCIATIONS AND
BUSINESS
CONSULTANCIES
TARGETED OUT REACH FOR COMPETITION ADVOCACY:-
PICTORIAL EXAMPLES OF CERTAIN ANTI-COMPETITIVE
PRACTICES FOR PROMOTING COMPETITION
ADVOCACY:-
THE SAME SUPPLIER IS OFTEN THE LOWEST BIDDER:-
PICTORIAL REPRESENTATION FOR ‘ABUSE OF DOMINANT POSITION’:-
PICTORIAL REPRESENTATION OF ‘ RESALE PRICE MAINTENANCE’:-
PICTORIAL REPRESENTATION OF ‘REFUSAL TO DEAL’:-
COMPETITION ADVOCACY
AND COMPETITION ACT,
2002.
04
“The Commission Shall Take Suitable Measures For The
Promotion Of Competition Advocacy,
Creating Awareness And Imparting
Training About Sector/Industry Specific
Competition Issues.”
-: SECTION 49(3)
THE COMPETITION ACT, 2002.
COMPETITION ADVOCACY IN INDIA
Importance given to competition advocacy in India can be gauged from the fact that it is only the Competition
Act, amongst all the statutes, which has a specific provision under section 49 for advocacy.
Section 49(3) of the Act envisages taking suitable measures for the promotion of competition advocacy,
creating awareness and imparting training about sector/industry specific competition issues.
In this pursuit, the Commission proactively engages with various stakeholders through well-structured
customized advocacy programes. This, while creating awareness about competition law resolves
doubts/queries harbored by target stakeholders group on one hand, it also supplements Commission’s
enforcement efforts on the other.
01
02
03
COMPETITION ADVOCACY INITIATIVES IN INDIA ARE PRIMARILY
FOCUSED:-
 To help enterprises to pre-empt violation of law.
 To supplement and lend credibility to the enforcement.
 To enhance acceptability of law.
 To garner support from government industry and other stakeholders.
 To facilitate establishment of sustainable competition culture.
COMPETITION ADVOCACY AND COMPETITION ACT, 2002:-
THE POLICY MAKERS
(CENTRAL AND
STATE
GOVERNMENTS)
THE SECTORAL
REGULATORS
THE PUBLIC AT
LARGE.
THE CENTRAL GOVERNMENT AS WELL AS STATE GOVERNMENTS
HAVE TO MAKE REFERENCE TO CCI FOR ITS OPINION. HOWEVER, CCI
CAN GIVE ITS OPINION ON COMPETITION POLICY ON ITS OWN TO
GOVERNMENT, NO REFERENCE IS REQUIRED.
THE ACT SPECIFICALLY PROVIDES FOR COMPETITION ADVOCACY
FOR CREATING AWARENESS AND IMPARTING TRAINING ABOUT
COMPETITION ISSUES AMONGST VARIOUS STAKE-HOLDERS.
THE ROLE OF OTHER STAKEHOLDERS LIKE CONSUMER
ORGANIZATIONS, INDUSTRY BODIES, TRADE ASSOCIATIONS,
PROFESSIONAL BODIES, RESEARCH INSTITUTIONS AND OTHER CIVIL
SOCIETY ORGANIZATIONS IS EQUALLY IMPORTANT TO CREATE A
CULTURE OF COMPETITION IN THE COUNTRY. THEY ARE
ENCOURAGED TO SUPPLEMENT THE EFFORTS OF THE CCI.
Section -178, Indian Company Act ,2013
Competition is the best means of ensuring that the ‘Common Man’ or ‘Aam Aadmi’ has
access to the broadest range of goods and services at the most competitive prices. With
increased competition, producers will have maximum incentive to innovate and
specialize. This would result in reduced costs and wider choice to consumers. A fair
competition in market is essential to achieve this objective. Our goal is to create and
sustain fair competition in the economy that will provide a ‘level playing field’ to the
producers and make the markets work for the welfare of the consumers.
OBJECTIVE OF CCI:-
The objectives of the Act are sought to be achieved
through the Competition Commission of India, which has
been established by the Central Government with effect
from 14th October 2003. CCI consists of a Chairperson
and 6 Members appointed by the Central Government.
It is the duty of the Commission to eliminate
practices having adverse effect on competition,
promote and sustain competition, protect the
interests of consumers and ensure freedom of
trade in the markets of India.
The Commission is also required to give opinion on
competition issues on a reference received from a
statutory authority established under any law and to
undertake competition advocacy, create public
awareness and impart training on competition issues.
ROLE OF CCI :-
Seminars And
Workshops Are
Effective Tools.
Published Brochures,
Guidelines, Articles
And Posting Them On
Website Are Able To
Carry The Message
Far And Wide. Competition
Authorities May
Give Opinion On
Proposed
Legislation And
Public Policy.
CCI Should Carry Out
Market Studies To
Understand The State
Of Competition In
Various Sectors In
Order To Advise The
Concerned Authorities
To Make Necessary
Changes.
It Is Imperative To CCI
To Formulate, Publish
And Post In The Public
Domain Guidelines
Covering Various
Dimensions Related To
Competition Law For
Enhancing
Public Awareness.
There Is An Urgent Need To
Increase The Level Of
Awareness About The
Benefits Of Competition
And The Contribution Of
The
Competition Law Amongst
The Public, More
Particularly Amongst The
Business Community.
COMPETITION LAW AND CCI CAN HELP GOVERNMENT AND
GOVERNMENT BODIES BY:-
Creating awareness among various levels of Government Officers to harmful effects of anti-competitive measures adopted by suppliers, manufacturers etc.
Planning Commission (2006), “Towards Faster and more Inclusive Growth – An Approach to the
Eleventh Five Year Plan, “Government of India.
Helping identifying areas where bid-rigging, cartelization or abuse of dominance may be taking place more often.
Reference by State Governments is proposed in the Competition (Amendment) Bill, 2006.
Helping in protection of small enterprises, self-employed and micro-retailers against abuse of dominance by bigger enterprises.
Report of the High Level Committee on Competition Policy and Law, 2000 Para 6.4.8
Creating positive effect on wages, working conditions and workers' welfare as a result of increase in allocative efficiencies arising in labour market.
Familiarizing with the legal remedies available in competition law.
Helping them develop competition compliance programs.
Providing competition advice in framing policies which are competition compliant.
Creating a healthy image of country's economic and commercial policies to the world.
Competition Is Not An End In Itself, But An
Instrument Designed To Achieve A Certain
Public Interest Objective, Consumer Welfare.
THANK YOU
.............
ASMITA & NAVINYA ©

Competition advocacy in India Final.pptx

  • 1.
    COMPETITION ADVOCACY IN INDIA By Prof.Asmita Mishra (asmita.lawm59@gmail.com) & Prof. Navinya Kamble (navinyakamble1999@gmail.com) © ASMITA & NAVINYA
  • 2.
    AGENDA:- WHY COMPETITION LAW? COMPETITIONACT, 2002. WHAT IS COMPETITION ADVOCACY? COMPETITION ADVOCACY AND COMPETITION ACT, 2002. 01 02 03 04
  • 3.
  • 4.
    COMPETITION LAW GENERALLYAIMS AT PREVENTING PRIVATE RESTRICTIVE BUSINESS PRACTICES THAT SIGNIFICANTLY LESSEN COMPETITION, REDUCE WELFARE, AND RESULT IN INEFFICIENT USE OF RESOURCES.
  • 5.
  • 6.
    COMPETITION ACT (HISTORICAL FOOTPRINT):- THEMONOPOLIES AND RESTRICTIVE TRADE PRACTICES ACT, 1969 [MRTP ACT] WAS REPEALED AND REPLACED BY THE COMPETITION ACT, 2002. THE MRTP COMMISSION WAS REPLACED BY THE COMPETITION COMMISSION OF INDIA. THE COMMENCEMENT OF THE COMPETITION ACT, 2002 2009 2003
  • 7.
    KEY PROVISIONS OFTHE COMPETITION ACT, 2002. SECTION 3: ANTI-COMPETITIVE AGREEMENTS SECTION 4: ABUSE OF DOMINANCE SECTION 5 & 6: COMBINATIONS SECTION 21 & 21A: ADVISORY SECTION 49: COMPETITION ADVOCACY
  • 8.
    — MOTTO OFTHE COMPETITION ACT, 2002. “FAIR COMPETITION FOR GREATER GOOD..”
  • 9.
  • 10.
  • 11.
    COMPETITION ADVOCACY DEFINED:- Competitionadvocacy connotes all the activities, endeavors undertaken by an antitrust agency to reach out to stakeholders in order to establish a robust competition culture through dissemination of information about extant competition laws, benefits of competition and implications of resorting to anticompetitive practices. It refers to those activities conducted by a competition authority with the ultimate objective of promotion of culture of compliance in all spheres of economy, by means of non-enforcements. Competition advocacy can also be looked at as enforcement of law without intervention. It yields maximum positive impact to the concern stakeholders with least intervention and an effective way to garner support to attain competition policy objectives. 01 02 03 04
  • 12.
    COMPETITION ADVOCACY: “COMPETITION ADVOCACY”MEANS THOSE ACTIVITIES WHICH ARE CONDUCTED TO PROMOTE A COMPETITIVE ENVIRONMENT FOR ECONOMIC ACTIVITIES. ADVOCACY IS THE ACT OF INFLUENCING OR SUPPORTING A PARTICULAR IDEA OR POLICY. RAISING THE LEVEL OF AWARENESS AMONG THE PUBLIC IS AN IMPORTANT STEP TOWARDS CREATING A COMPETITION CULTURE WITHIN THE COUNTRY. EFFECTIVE IMPLEMENTATION OF ANY POLICY AND LAW LARGELY DEPENDS UPON THE WILLINGNESS OF THE PEOPLE TO ACCEPT THE LAW. IN THAT SENSE ADVOCACY ALWAYS PLAYS A VITAL ROLE IN SECURING THE WILLINGNESS AND ACCEPTABILITY OF ANY POLICY AND LAW. THE COMPETITION COMMISSION OF INDIA (CCI) IS OBLIGED TO TAKE CHARGE OF COMPETITION ADVOCACY IN INDIA.
  • 13.
    RAGHVAN COMMITTEE REPORT:- SVSRAGHAVAN COMMITTEE (2015). The role of CCI is not merely enforcing the Competition Law. Commission has to act the role of a competition advocate also to bring about Government policies that lower down the barriers to entry, promote de-regulation and trade liberalization and promote competition in the market place. Aim of competition is to lead more competitive market structure without the direct intervention of the CCI. To make successful competition advocacy programme, CCI has to develop relationship with the Ministries and Departments of the Government, regulatory agencies and other bodies to formulate and administer policies CCI has to encourage debate on competition and promote a better and more informed economic decision making. Competition advocacy must be open and transparent to ensure safeguard the integrity and capability of the CCI. By establishing good media relations and explaining the role and importance of Competition Policy/Law as an integral part of the Government’s economic framework CCI can enhance the competition advocacy.
  • 14.
    KEY STAKEHOLDERS OF COMPETITION ADVOCACY CENTRAL & STATE GOVERNMENTS ANDPUBLIC SECTOR ORGANIZATIONS. BUSINESS AND TRADE ASSOCIATIONS . PROFESSIONA L INSTITUTES:- ICAI, ICSI, ICMAI. ACADEMIA- STUDENTS, UNIVERSITIES, LAW SCHOOLS ETC. KEY STAKEHOLDERS OF COMPETITION ADVOCACY:-
  • 15.
    • CUSTOMISED ADVOCACY PROGRAMMES WITH REGIONALCHAPTERS. • FOCUSED WORKSHOPS WITH REGIONAL AND SECTOR ASSOCIATIONS • COMPETITION ASSESSMENT • MEETINGS, WORKSHOPS WITH CENTRAL AND STATE GOVERNMENTS • THEMATIC LECTURES • SPONSORING MOOT COURTS ON COMPETITION LAW • INTERNSHIPS BY CCI UNIVERSITIES AND OTHER EDUCATIONAL INSTITUTIONS. CENTRAL & STATE GOVERNMENTS AND PUBLIC SECTOR ORGANIZATIONS. PROFESSIONAL INSTITUTES VIZ ICAI, ICSI, ICMAI TRADE ASSOCIATIONS AND BUSINESS CONSULTANCIES TARGETED OUT REACH FOR COMPETITION ADVOCACY:-
  • 16.
    PICTORIAL EXAMPLES OFCERTAIN ANTI-COMPETITIVE PRACTICES FOR PROMOTING COMPETITION ADVOCACY:-
  • 17.
    THE SAME SUPPLIERIS OFTEN THE LOWEST BIDDER:-
  • 18.
    PICTORIAL REPRESENTATION FOR‘ABUSE OF DOMINANT POSITION’:-
  • 19.
    PICTORIAL REPRESENTATION OF‘ RESALE PRICE MAINTENANCE’:-
  • 20.
    PICTORIAL REPRESENTATION OF‘REFUSAL TO DEAL’:-
  • 21.
  • 22.
    “The Commission ShallTake Suitable Measures For The Promotion Of Competition Advocacy, Creating Awareness And Imparting Training About Sector/Industry Specific Competition Issues.” -: SECTION 49(3) THE COMPETITION ACT, 2002.
  • 23.
    COMPETITION ADVOCACY ININDIA Importance given to competition advocacy in India can be gauged from the fact that it is only the Competition Act, amongst all the statutes, which has a specific provision under section 49 for advocacy. Section 49(3) of the Act envisages taking suitable measures for the promotion of competition advocacy, creating awareness and imparting training about sector/industry specific competition issues. In this pursuit, the Commission proactively engages with various stakeholders through well-structured customized advocacy programes. This, while creating awareness about competition law resolves doubts/queries harbored by target stakeholders group on one hand, it also supplements Commission’s enforcement efforts on the other. 01 02 03
  • 24.
    COMPETITION ADVOCACY INITIATIVESIN INDIA ARE PRIMARILY FOCUSED:-  To help enterprises to pre-empt violation of law.  To supplement and lend credibility to the enforcement.  To enhance acceptability of law.  To garner support from government industry and other stakeholders.  To facilitate establishment of sustainable competition culture.
  • 25.
    COMPETITION ADVOCACY ANDCOMPETITION ACT, 2002:- THE POLICY MAKERS (CENTRAL AND STATE GOVERNMENTS) THE SECTORAL REGULATORS THE PUBLIC AT LARGE. THE CENTRAL GOVERNMENT AS WELL AS STATE GOVERNMENTS HAVE TO MAKE REFERENCE TO CCI FOR ITS OPINION. HOWEVER, CCI CAN GIVE ITS OPINION ON COMPETITION POLICY ON ITS OWN TO GOVERNMENT, NO REFERENCE IS REQUIRED. THE ACT SPECIFICALLY PROVIDES FOR COMPETITION ADVOCACY FOR CREATING AWARENESS AND IMPARTING TRAINING ABOUT COMPETITION ISSUES AMONGST VARIOUS STAKE-HOLDERS. THE ROLE OF OTHER STAKEHOLDERS LIKE CONSUMER ORGANIZATIONS, INDUSTRY BODIES, TRADE ASSOCIATIONS, PROFESSIONAL BODIES, RESEARCH INSTITUTIONS AND OTHER CIVIL SOCIETY ORGANIZATIONS IS EQUALLY IMPORTANT TO CREATE A CULTURE OF COMPETITION IN THE COUNTRY. THEY ARE ENCOURAGED TO SUPPLEMENT THE EFFORTS OF THE CCI. Section -178, Indian Company Act ,2013
  • 26.
    Competition is thebest means of ensuring that the ‘Common Man’ or ‘Aam Aadmi’ has access to the broadest range of goods and services at the most competitive prices. With increased competition, producers will have maximum incentive to innovate and specialize. This would result in reduced costs and wider choice to consumers. A fair competition in market is essential to achieve this objective. Our goal is to create and sustain fair competition in the economy that will provide a ‘level playing field’ to the producers and make the markets work for the welfare of the consumers. OBJECTIVE OF CCI:-
  • 27.
    The objectives ofthe Act are sought to be achieved through the Competition Commission of India, which has been established by the Central Government with effect from 14th October 2003. CCI consists of a Chairperson and 6 Members appointed by the Central Government. It is the duty of the Commission to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade in the markets of India. The Commission is also required to give opinion on competition issues on a reference received from a statutory authority established under any law and to undertake competition advocacy, create public awareness and impart training on competition issues.
  • 28.
    ROLE OF CCI:- Seminars And Workshops Are Effective Tools. Published Brochures, Guidelines, Articles And Posting Them On Website Are Able To Carry The Message Far And Wide. Competition Authorities May Give Opinion On Proposed Legislation And Public Policy. CCI Should Carry Out Market Studies To Understand The State Of Competition In Various Sectors In Order To Advise The Concerned Authorities To Make Necessary Changes. It Is Imperative To CCI To Formulate, Publish And Post In The Public Domain Guidelines Covering Various Dimensions Related To Competition Law For Enhancing Public Awareness. There Is An Urgent Need To Increase The Level Of Awareness About The Benefits Of Competition And The Contribution Of The Competition Law Amongst The Public, More Particularly Amongst The Business Community.
  • 29.
    COMPETITION LAW ANDCCI CAN HELP GOVERNMENT AND GOVERNMENT BODIES BY:- Creating awareness among various levels of Government Officers to harmful effects of anti-competitive measures adopted by suppliers, manufacturers etc. Planning Commission (2006), “Towards Faster and more Inclusive Growth – An Approach to the Eleventh Five Year Plan, “Government of India. Helping identifying areas where bid-rigging, cartelization or abuse of dominance may be taking place more often. Reference by State Governments is proposed in the Competition (Amendment) Bill, 2006. Helping in protection of small enterprises, self-employed and micro-retailers against abuse of dominance by bigger enterprises. Report of the High Level Committee on Competition Policy and Law, 2000 Para 6.4.8 Creating positive effect on wages, working conditions and workers' welfare as a result of increase in allocative efficiencies arising in labour market. Familiarizing with the legal remedies available in competition law. Helping them develop competition compliance programs. Providing competition advice in framing policies which are competition compliant. Creating a healthy image of country's economic and commercial policies to the world.
  • 30.
    Competition Is NotAn End In Itself, But An Instrument Designed To Achieve A Certain Public Interest Objective, Consumer Welfare. THANK YOU ............. ASMITA & NAVINYA ©