Competition Law awareness and enforcement are increasing day by day. Long-term, sustainable growth of big organization, corporation and companies warrants attention to competition law while strategising their growth.

1. COMPETITION LAW
By Hitesh Kumar Singh

2. EVOLUTION OF COMPETITION ACT
2009
2002
1991
1969
1950
2011
Directive Principles of State Policy – Articles 38 and 39
Monopolies and Restrictive
trade Practices Act
Economic Liberalization
Competition Act
MRTP ACT is replaced.
Certain Sections notified.
Competition Act is completely effective

3. CCI Imposing Heavy Penalties for Enforcement
Penalty of Rs.6,715
crore on 11 cement
companies
Penalty of Rs.2,554
crore on 14 car
companies
Penalty of Rs.257.91
crore on three of
India’s largest airlines
Penalty of Rs.72.96
crore on Lupin
Penalty of Rs.1,773
crore on Coal India
Penalty of Rs.630
crore on DLF
Penalty of Rs.420
crore on Hyundai
http://www.livemint.com/Politics/28q9vf3FP7bU8JaIPpX0pL/Seven-large-penalties-imposed-by-CCI.html

4. Competition Law is codification of rules designed to
promote and sustain market competition
What is Competition
What is Competition Law
It is the “invisible hand” of competition that steers
markets towards efficient equilibriums

5. Freedom of Trade and
Prevent anti-competitive behaviour
 Preclude practices that could drive companies out of busin
 Efficient allocation and utilization of resources
Protect Consumer Interest
 choice of quality
 lowest possible prices
Promote & sustain competition
 Level playing field
 inclusive growth
CCI
Objectives

6. Anti-Competitive Agreements
Combinations
Abuse of Dominance

7. What type of agreements could be anti-competitive
exclusive dealing
joint sell/purchase with competitors
Tie-in arrangements
Resale price maintenance
Territorial allocation
Cartel one type of anti- Competitive arrangement

8. Anti-Competitive Agreements
Formal
Informal
Explicit
Written
Oral
Implied
Meeting of
Minds

9. Agreement definition in Act
Wide and Inclusive
Need not to be
enforceable by
law
Even a wink or
nod can be
construed as an
agreement

10. Dominant Companies have a special
responsibility to behave responsibly
Attracts Scrutiny
Company is in a
‘Dominant Position’
in
the ‘relevant market
It has ‘abused’ the
position of
‘dominance

11. operate
independent of
competitive
forces
prevailing in the
relevant market
position of
strength,
enjoyed by an
enterprise, in
the
relevant market
affect its
competitors or
consumers or
the relevant
market in its
favour
Dominant Position

12. What is Abuse?
Exploitative
Practices
Exclusionary
Practicesdirectly or indirectly, imposes
(i) condition in purchase or
sale of goods or service; or
(ii) price in purchase or sale
including predatory price
limits or restrict production
of goods or provision of
services or market or uses
one market to protect
another market etc.

13. Power of CCI
Enjoys powers of
Civil Court
Enquire into allegations of “anti-
competitive agreement” or
“abuse of dominant position
Autonomy to regulate its
own procedure
Direct discontinuance of anti-competitive
practice/s; direct modification of
agreements; impose penalties.

14.  Penalty upto 10% of average turnover of preceding 3
years.
 In cases of cartel agreements, penalty is higher of
• 10% of the turnover or
• 3 times the profit made during the cartel period;
 In the event of default, recovery through Income Tax
Department as Tax arrears.
 Additional penalty of ten crores may be
imposed if the order of the Commission
are not complied with. If not complied
even then, punishable with imprisonment
upto 3 year or fine of 25 Cr.
 Individual who fails to comply with the
orders of commission to produce
evidence/ records etc can be punished
with fine @ Rs. 1 lac per day of default,
upto 1Cr.
 Furnishing false information, destruction
or suppression of information can attract
fine upto 1 Cr.
Impact of
non-
compliance
 Additional penalty of 10 crores may be imposed
If the order of the Commission are not complied with.
 If not complied even then, punishable with
imprisonment upto 3 year or fine of 25 Cr.
 Individual who fails to comply with the orders of
commission to produce evidence/ records etc can be
punished with fine @ Rs. 1 lac per day of default, upto 1Cr.
 Furnishing false information, destruction or suppression of
information can attract fine upto 1 Cr.

15. HITESH KUMAR SINGH
LinkedIn: https://in.linkedin.com/in/lawyerhitesh
Twitter: @hiteshkrsingh
Thank You
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