The document discusses European Union competition law regarding mergers. It defines different types of mergers like horizontal, vertical, and conglomerate mergers. It explains the purpose of merger control is to maintain competition and prevent the formation of monopolies that could harm consumer welfare. Merger control evaluates whether a merger could allow the merging companies to unilaterally exercise power over the market and reduce competition. Theories of potential competitive harm from mergers include unilateral or non-coordinated effects where competition between the merging companies' products is eliminated.
Comparative law involves the study of differences and similarities between legal systems of different countries. It examines major types of legal systems including common law, civil law, and socialist law. A key aspect of comparative law is understanding how legal systems shape politics, economics, and society while also protecting basic human rights that all people share. Studying comparative law is important for understanding how legal institutions evolve over time and for navigating an increasingly globalized and interconnected world.
The Agreement on Trade-Related Investment Measures (TRIMs) aims to promote trade liberalization while ensuring competition. It recognizes that certain investment measures can distort trade. The TRIMs Agreement clarifies that GATT Articles III (national treatment) and XI (prohibition of quantitative restrictions) apply to investment measures related to trade in goods. It includes an illustrative list of measures inconsistent with these articles, such as local content requirements and import/export balancing requirements. The agreement establishes notification requirements for members and transition periods for eliminating inconsistent measures. It focuses on limiting investment measures' impact on trade in goods and does not regulate foreign investment or services.
The document discusses several theories of international trade:
1. Mercantilism held that a nation's wealth depended on accumulating gold and silver through trade surpluses. It advocated subsidies for exports and tariffs/quotas on imports.
2. Adam Smith's absolute advantage theory argued that countries should specialize in goods they produce most efficiently and trade for other goods. Both countries can benefit through specialization and trade.
3. David Ricardo's comparative advantage theory extended this, showing that trade can benefit both sides even if one country is more efficient overall. Countries should import goods they have a comparative - not absolute - disadvantage in.
4. Later theories examined factors like differences in factor endowments
This chapter discusses secured transactions under Article 9 of the Uniform Commercial Code. It defines secured and unsecured debt, outlines the scope of Article 9, and describes how a security interest is created and perfected. Key concepts covered include floating liens, priority issues between secured parties and other creditors, the rights and duties of secured parties and debtors upon default, and remedies available to debtors. The chapter aims to help readers understand secured transactions and how to properly create, perfect, and enforce security interests.
Alternative dipsute resolution system is informal method of resolving conflicts. there are different modes of ADR viz., negotiations, mediation , conciliation and arbitration etc.
Companies can be classified in several ways, including by incorporation, liability of members, ownership, and control. There are two main types of companies - statutory companies formed by special acts of parliament, and registered companies formed under the Indian Companies Act. Registered companies are further divided into companies limited by shares, where member liability is limited to unpaid shares; companies limited by guarantee, where member liability is limited to a guaranteed contribution in the event of winding up; and unlimited companies with no limit on member liability. Private and public companies are also distinguished, with private companies having fewer than 200 members and lower minimum capital. Government companies are at least 51% owned by the government, while non-government companies are foreign companies registered outside of India.
Comparative law involves the study of differences and similarities between legal systems of different countries. It examines major types of legal systems including common law, civil law, and socialist law. A key aspect of comparative law is understanding how legal systems shape politics, economics, and society while also protecting basic human rights that all people share. Studying comparative law is important for understanding how legal institutions evolve over time and for navigating an increasingly globalized and interconnected world.
The Agreement on Trade-Related Investment Measures (TRIMs) aims to promote trade liberalization while ensuring competition. It recognizes that certain investment measures can distort trade. The TRIMs Agreement clarifies that GATT Articles III (national treatment) and XI (prohibition of quantitative restrictions) apply to investment measures related to trade in goods. It includes an illustrative list of measures inconsistent with these articles, such as local content requirements and import/export balancing requirements. The agreement establishes notification requirements for members and transition periods for eliminating inconsistent measures. It focuses on limiting investment measures' impact on trade in goods and does not regulate foreign investment or services.
The document discusses several theories of international trade:
1. Mercantilism held that a nation's wealth depended on accumulating gold and silver through trade surpluses. It advocated subsidies for exports and tariffs/quotas on imports.
2. Adam Smith's absolute advantage theory argued that countries should specialize in goods they produce most efficiently and trade for other goods. Both countries can benefit through specialization and trade.
3. David Ricardo's comparative advantage theory extended this, showing that trade can benefit both sides even if one country is more efficient overall. Countries should import goods they have a comparative - not absolute - disadvantage in.
4. Later theories examined factors like differences in factor endowments
This chapter discusses secured transactions under Article 9 of the Uniform Commercial Code. It defines secured and unsecured debt, outlines the scope of Article 9, and describes how a security interest is created and perfected. Key concepts covered include floating liens, priority issues between secured parties and other creditors, the rights and duties of secured parties and debtors upon default, and remedies available to debtors. The chapter aims to help readers understand secured transactions and how to properly create, perfect, and enforce security interests.
Alternative dipsute resolution system is informal method of resolving conflicts. there are different modes of ADR viz., negotiations, mediation , conciliation and arbitration etc.
Companies can be classified in several ways, including by incorporation, liability of members, ownership, and control. There are two main types of companies - statutory companies formed by special acts of parliament, and registered companies formed under the Indian Companies Act. Registered companies are further divided into companies limited by shares, where member liability is limited to unpaid shares; companies limited by guarantee, where member liability is limited to a guaranteed contribution in the event of winding up; and unlimited companies with no limit on member liability. Private and public companies are also distinguished, with private companies having fewer than 200 members and lower minimum capital. Government companies are at least 51% owned by the government, while non-government companies are foreign companies registered outside of India.
Presentation on The competition act(2002)satya pal
The document summarizes the key aspects of the Competition Act of 2002 in India. It discusses the objectives of eliminating anti-competitive practices and promoting fair competition. The main features covered are the prohibition of anti-competitive agreements such as cartels, abuse of dominant market positions, and regulations governing mergers and acquisitions. Enforcement is carried out by the Competition Commission of India through investigations and imposition of penalties. The act aims to protect consumer welfare and ensure fair competition in the market.
This document discusses international trade law and theories of international trade. It begins by defining international trade and outlining the key developments that led to its growth, such as the industrial revolution, imperialism, and advances in transportation and technology. It then lists several advantages and disadvantages of international trade. The main body of the document outlines six economic theories of international trade law: Mercantilist Theory, Classical Theory (including Absolute and Comparative Cost Advantage), Heckscher-Ohlin Theory, and several New Trade Theories including Neo-Technological, Intra-Industry, and Strategic Trade Policy models. Each theory is concisely described.
Convention on the Recognition and Enforcement of Foreign Arbitral Awards Joyce Williams
The document provides an overview of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. It notes that the convention was adopted in 1958 and has 156 signatories including Ghana. The key provisions discussed include that arbitration agreements must be in writing, the convention defines five grounds for refusing enforcement of an award, and courts can also refuse enforcement based on arbitrability and public policy concerns. The convention aims to encourage broad enforcement of international arbitration awards.
Trade related investment measures {trims}suyash gunjal
The document discusses the Agreement on Trade-Related Investment Measures (TRIMs) of the WTO. It provides background on TRIMs, including that they prohibit certain trade-related investment measures imposed by countries that discriminate against foreign investment or violate WTO principles. It summarizes a dispute between the US, EU and India involving India's local content requirements and trade balancing requirements in its automotive sector, which were found to be inconsistent with TRIMs. It also notes developing countries' concerns that TRIMs limit their policy space for industrialization.
Anti competitive agreements under the competition actAltacit Global
The document discusses anti-competitive agreements under the Competition Act in India. It covers what the Act prohibits, including anti-competitive arrangements between businesses like cartels that fix prices or allocate markets. Horizontal agreements between competitors like price fixing are prohibited. Vertical agreements between businesses at different levels can also restrict competition. The Indian Contract Act also addresses restrictive agreements but has exceptions for reasonable restraints like non-compete clauses for outgoing business partners. The Competition Act aims to promote fair competition for consumer welfare while preventing monopolies formed through anti-competitive collusion.
This presentation depicts the evolution of International Trade Law and major steps taken to formulate the specialized forum dealing solely on international trade negotiations, it further enumerates the significance of World Trade Organizatio
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
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).
This document discusses dumping and the conditions for imposing anti-dumping duties. It defines dumping as exporting a product at a lower price in a foreign market than in the domestic market. Dumping can have advantages like penetrating new markets, but also disadvantages like retaliation. Anti-dumping measures aim to counter the trade-distorting effects of dumping and include tariffs and import quotas. For a country to impose anti-dumping duties, there must be evidence of dumping, injury to a domestic industry, and a causal link between the dumping and injury. The effects of anti-dumping laws can be both positive in protecting domestic industries, and negative in creating trade barriers.
WTO Agreement on Subsidies and Countervailing MeasuresEvgeny Pustovalov
The document discusses key aspects of the WTO Agreement on Subsidies and Countervailing Measures (SCM Agreement). It outlines the different types of subsidies - prohibited, actionable, and non-actionable - and the rules governing each. Prohibited subsidies include export subsidies and import substitution subsidies. Actionable subsidies are those that cause adverse effects like injury to domestic industry. Non-actionable subsidies are those that are non-specific. The agreement also provides special and differential treatment for developing countries in areas like de minimis subsidy levels and volume thresholds for countervailing investigations. Remedies under the agreement include withdrawal of subsidies or imposition of countervailing duties.
This document discusses various economic theories of international trade and foreign direct investment. It begins by explaining the theories of absolute and comparative advantage in trade. It then introduces several modern firm-based theories that help explain intraindustry trade, including country similarity theory, product life cycle theory, and theories about sustaining competitive advantage. The document also discusses Porter's diamond of national competitive advantage and different types of international investment.
What is international dispute? What are the various ways of settling the international dispute? Explain Pacific means of settling the dispute. Explain the coercive method of solving the dispute. In this ppt we deal with all these question that will be helpful for law exams.
Foreign direct investment (FDI) in India has played an important role in the development of the Indian economy. FDI in India has - in a lot of ways - enabled India to achieve a certain degree of financial stability, growth and development. This money has allowed India to focus on the areas that may have needed economic attention, and address the various problems that continue to challenge the country.
The document presents information on competition law in India. It discusses the need for competition laws, objectives of the MRTP Act of 1969, key features of the Competition Act 2002 including prohibiting anti-competitive agreements and abuse of dominant position. It also describes types of monopolistic trade practices, restrictive trade practices, unfair trade practices and differences between horizontal and vertical agreements. Some important international cartel cases involving graphite electrodes, lysine and vitamins are also summarized.
The document discusses the Competition Act of 2002 in India. It provides an overview of the Act's key features including regulations around anti-competitive practices, abuse of dominance, and mergers and acquisitions. It also describes the role of Competition Advocacy and the initiatives taken by the Competition Commission of India to promote awareness. Finally, it outlines 4 case studies that the Commission has reviewed related to alleged violations of the Act, such as a hospital accused of restricting patient choice or bid rigging among manufacturers.
This document provides an overview of international commercial arbitration. It begins by defining international commercial arbitration and explaining its key characteristics: it is a mechanism for private dispute settlement based on party consent that results in a final decision. The document then discusses the history of international commercial arbitration and how it has grown since the 1920s. It also outlines the legal framework for international commercial arbitration, including the New York Convention, national arbitration laws, arbitration rules, and practice. The document provides this information to give context and background on international commercial arbitration as a dispute resolution process.
This document discusses oppression and mismanagement under the Companies Act 2013 in India. It defines oppression as unjust exercise of power that harms shareholders' legitimate expectations. Mismanagement refers to incompetent or dishonest management, like serious conflicts, illegal boards, or asset diversion. The Act allows shareholders to apply to the tribunal for relief from oppression or mismanagement. The tribunal can order remedies like regulating company affairs, removing directors, or modifying agreements. The requirements to file such applications and the limitation period are also discussed. The document explains class action suits allow shareholders to seek compensation for fraudulent conduct.
Enforcement of foreign arbitral awards Dechen Gurung
The document discusses international commercial arbitration and the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. It provides an overview of key aspects of the Convention, including that it establishes rules for recognizing and enforcing arbitral awards internationally. The Convention has 159 member states and aims to ensure arbitral awards are recognized and enforced similarly to domestic awards. The summary also outlines grounds for refusing recognition or enforcement of an award under the Convention.
The document discusses the legal system in England and Wales. It describes that England has a common law system where judicial precedents are binding, unlike most European countries which follow a civil law system of codified laws. The highest court in the UK is the Supreme Court, and it was previously called the House of Lords. Lower courts include magistrates' courts which handle less serious criminal matters and county courts which handle civil cases. More serious criminal cases are handled in the Crown Court before a judge and jury.
The document discusses competition law and policy in India. It defines competition and outlines the benefits of competition for companies, consumers, and the government. However, it notes that these benefits are lost without fair competition or if a monopoly exists. It then discusses key aspects of competition law and policy in India such as the objectives to promote economic efficiency and protect consumers, types of anti-competitive agreements and abuse of dominance, the role and powers of the Competition Commission of India, and penalties for anti-competitive behavior.
The document summarizes India's Competition Act of 2002 and outlines its objectives to promote fair competition in the market. It discusses different anti-competitive practices like cartels and abuse of dominance that the Act prohibits. It also describes the roles and powers of the Competition Commission of India in regulating combinations, enforcing the Act through penalties, and advocating for competitive markets through non-enforcement measures.
Presentation on The competition act(2002)satya pal
The document summarizes the key aspects of the Competition Act of 2002 in India. It discusses the objectives of eliminating anti-competitive practices and promoting fair competition. The main features covered are the prohibition of anti-competitive agreements such as cartels, abuse of dominant market positions, and regulations governing mergers and acquisitions. Enforcement is carried out by the Competition Commission of India through investigations and imposition of penalties. The act aims to protect consumer welfare and ensure fair competition in the market.
This document discusses international trade law and theories of international trade. It begins by defining international trade and outlining the key developments that led to its growth, such as the industrial revolution, imperialism, and advances in transportation and technology. It then lists several advantages and disadvantages of international trade. The main body of the document outlines six economic theories of international trade law: Mercantilist Theory, Classical Theory (including Absolute and Comparative Cost Advantage), Heckscher-Ohlin Theory, and several New Trade Theories including Neo-Technological, Intra-Industry, and Strategic Trade Policy models. Each theory is concisely described.
Convention on the Recognition and Enforcement of Foreign Arbitral Awards Joyce Williams
The document provides an overview of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. It notes that the convention was adopted in 1958 and has 156 signatories including Ghana. The key provisions discussed include that arbitration agreements must be in writing, the convention defines five grounds for refusing enforcement of an award, and courts can also refuse enforcement based on arbitrability and public policy concerns. The convention aims to encourage broad enforcement of international arbitration awards.
Trade related investment measures {trims}suyash gunjal
The document discusses the Agreement on Trade-Related Investment Measures (TRIMs) of the WTO. It provides background on TRIMs, including that they prohibit certain trade-related investment measures imposed by countries that discriminate against foreign investment or violate WTO principles. It summarizes a dispute between the US, EU and India involving India's local content requirements and trade balancing requirements in its automotive sector, which were found to be inconsistent with TRIMs. It also notes developing countries' concerns that TRIMs limit their policy space for industrialization.
Anti competitive agreements under the competition actAltacit Global
The document discusses anti-competitive agreements under the Competition Act in India. It covers what the Act prohibits, including anti-competitive arrangements between businesses like cartels that fix prices or allocate markets. Horizontal agreements between competitors like price fixing are prohibited. Vertical agreements between businesses at different levels can also restrict competition. The Indian Contract Act also addresses restrictive agreements but has exceptions for reasonable restraints like non-compete clauses for outgoing business partners. The Competition Act aims to promote fair competition for consumer welfare while preventing monopolies formed through anti-competitive collusion.
This presentation depicts the evolution of International Trade Law and major steps taken to formulate the specialized forum dealing solely on international trade negotiations, it further enumerates the significance of World Trade Organizatio
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
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).
This document discusses dumping and the conditions for imposing anti-dumping duties. It defines dumping as exporting a product at a lower price in a foreign market than in the domestic market. Dumping can have advantages like penetrating new markets, but also disadvantages like retaliation. Anti-dumping measures aim to counter the trade-distorting effects of dumping and include tariffs and import quotas. For a country to impose anti-dumping duties, there must be evidence of dumping, injury to a domestic industry, and a causal link between the dumping and injury. The effects of anti-dumping laws can be both positive in protecting domestic industries, and negative in creating trade barriers.
WTO Agreement on Subsidies and Countervailing MeasuresEvgeny Pustovalov
The document discusses key aspects of the WTO Agreement on Subsidies and Countervailing Measures (SCM Agreement). It outlines the different types of subsidies - prohibited, actionable, and non-actionable - and the rules governing each. Prohibited subsidies include export subsidies and import substitution subsidies. Actionable subsidies are those that cause adverse effects like injury to domestic industry. Non-actionable subsidies are those that are non-specific. The agreement also provides special and differential treatment for developing countries in areas like de minimis subsidy levels and volume thresholds for countervailing investigations. Remedies under the agreement include withdrawal of subsidies or imposition of countervailing duties.
This document discusses various economic theories of international trade and foreign direct investment. It begins by explaining the theories of absolute and comparative advantage in trade. It then introduces several modern firm-based theories that help explain intraindustry trade, including country similarity theory, product life cycle theory, and theories about sustaining competitive advantage. The document also discusses Porter's diamond of national competitive advantage and different types of international investment.
What is international dispute? What are the various ways of settling the international dispute? Explain Pacific means of settling the dispute. Explain the coercive method of solving the dispute. In this ppt we deal with all these question that will be helpful for law exams.
Foreign direct investment (FDI) in India has played an important role in the development of the Indian economy. FDI in India has - in a lot of ways - enabled India to achieve a certain degree of financial stability, growth and development. This money has allowed India to focus on the areas that may have needed economic attention, and address the various problems that continue to challenge the country.
The document presents information on competition law in India. It discusses the need for competition laws, objectives of the MRTP Act of 1969, key features of the Competition Act 2002 including prohibiting anti-competitive agreements and abuse of dominant position. It also describes types of monopolistic trade practices, restrictive trade practices, unfair trade practices and differences between horizontal and vertical agreements. Some important international cartel cases involving graphite electrodes, lysine and vitamins are also summarized.
The document discusses the Competition Act of 2002 in India. It provides an overview of the Act's key features including regulations around anti-competitive practices, abuse of dominance, and mergers and acquisitions. It also describes the role of Competition Advocacy and the initiatives taken by the Competition Commission of India to promote awareness. Finally, it outlines 4 case studies that the Commission has reviewed related to alleged violations of the Act, such as a hospital accused of restricting patient choice or bid rigging among manufacturers.
This document provides an overview of international commercial arbitration. It begins by defining international commercial arbitration and explaining its key characteristics: it is a mechanism for private dispute settlement based on party consent that results in a final decision. The document then discusses the history of international commercial arbitration and how it has grown since the 1920s. It also outlines the legal framework for international commercial arbitration, including the New York Convention, national arbitration laws, arbitration rules, and practice. The document provides this information to give context and background on international commercial arbitration as a dispute resolution process.
This document discusses oppression and mismanagement under the Companies Act 2013 in India. It defines oppression as unjust exercise of power that harms shareholders' legitimate expectations. Mismanagement refers to incompetent or dishonest management, like serious conflicts, illegal boards, or asset diversion. The Act allows shareholders to apply to the tribunal for relief from oppression or mismanagement. The tribunal can order remedies like regulating company affairs, removing directors, or modifying agreements. The requirements to file such applications and the limitation period are also discussed. The document explains class action suits allow shareholders to seek compensation for fraudulent conduct.
Enforcement of foreign arbitral awards Dechen Gurung
The document discusses international commercial arbitration and the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. It provides an overview of key aspects of the Convention, including that it establishes rules for recognizing and enforcing arbitral awards internationally. The Convention has 159 member states and aims to ensure arbitral awards are recognized and enforced similarly to domestic awards. The summary also outlines grounds for refusing recognition or enforcement of an award under the Convention.
The document discusses the legal system in England and Wales. It describes that England has a common law system where judicial precedents are binding, unlike most European countries which follow a civil law system of codified laws. The highest court in the UK is the Supreme Court, and it was previously called the House of Lords. Lower courts include magistrates' courts which handle less serious criminal matters and county courts which handle civil cases. More serious criminal cases are handled in the Crown Court before a judge and jury.
The document discusses competition law and policy in India. It defines competition and outlines the benefits of competition for companies, consumers, and the government. However, it notes that these benefits are lost without fair competition or if a monopoly exists. It then discusses key aspects of competition law and policy in India such as the objectives to promote economic efficiency and protect consumers, types of anti-competitive agreements and abuse of dominance, the role and powers of the Competition Commission of India, and penalties for anti-competitive behavior.
The document summarizes India's Competition Act of 2002 and outlines its objectives to promote fair competition in the market. It discusses different anti-competitive practices like cartels and abuse of dominance that the Act prohibits. It also describes the roles and powers of the Competition Commission of India in regulating combinations, enforcing the Act through penalties, and advocating for competitive markets through non-enforcement measures.
The document summarizes India's Competition Act of 2002. The Act aims to promote fair competition in the market and protect consumer interests. It prohibits anti-competitive agreements between businesses like price fixing. It also prevents abuse of dominant market positions. The Act regulates mergers and acquisitions that could reduce competition. Review of combinations is subject to thresholds based on company turnover to encourage business growth. The Competition Commission of India enforces the Act and ensures open competition.
The document discusses competition law and policy in India. It provides definitions of key concepts like competition and dominant position. It describes the objectives of competition law as promoting economic efficiency and consumer welfare. The Competition Act 2002 aims to prevent anti-competitive practices by firms like cartels, abuse of dominance, and regulate mergers and acquisitions. It established the Competition Commission of India as a regulatory body with quasi-judicial powers.
The document discusses the conditions of perfect competition in markets. It explains that perfect competition requires: many small businesses with similar products; low barriers to entry and exit; perfect information; and buyers and sellers that are price takers. However, most industries exhibit imperfect competition instead, with market structures like monopoly, oligopoly, and monopolistic competition that have some control over prices. The benefits of perfect competition are economic efficiency and prices that benefit both consumers and businesses.
The document discusses perfect competition and its five conditions: many buyers and sellers, similar products, easy market entry and exit, perfect information, and price-taking behavior. It provides examples of industries that approach perfect competition like agriculture. Perfect competition maximizes economic efficiency but is rare to achieve. Most industries exhibit imperfect competition characterized by monopoly, oligopoly, or monopolistic competition.
This document provides an overview of business combinations, including:
- Business combinations involve two or more independent business entities joining together for specific purposes like mergers, acquisitions, or pools.
- They are common due to factors like avoiding wasteful competition, achieving economies of scale, gaining monopoly power, and business cycles.
- There are different types of business combinations including vertical, horizontal, lateral, and circular combinations. Pools and cartels are also forms of business combinations that aim to regulate prices and production among member firms.
- Governments may encourage or require certain combinations to promote efficiency or social interests.
The document discusses competition and competition policy in India. It defines competition as situations in markets where sellers strive for buyers to achieve business goals. Competition policy aims to promote efficiency and maximize welfare. The Competition Act of 2002 established a commission to prevent anti-competitive practices, promote competition, protect consumers, and ensure freedom of trade. The Act prohibits anti-competitive agreements and abuse of dominant positions. It regulates combinations and promotes competition advocacy. The Commission has powers like issuing cease/desist orders and imposing penalties.
This document summarizes Article 102 of the Treaty on the Functioning of the European Union, which prohibits the abuse of a dominant market position. It defines key terms like "undertakings", "dominant position", and "substantial part of the internal market". It discusses types of competitors including actual competitors based on market share, and potential competitors. It also outlines factors that can influence competition such as barriers to entry, countervailing buyer power, and the degree of market power held by a dominant undertaking.
Lecture on Competition Law_Unit 1 AS ON 03.02.2023.pdfYashwantMishra13
This document provides an introduction to competition law. It discusses how early Indian industrial policies from 1948-1956 promoted a regulated economy with state control over key industries and imports/exports. This led to inefficiencies as there was no competition. The 1991 economic reforms aimed to liberalize and increase competition. Competition brings benefits like innovation, efficiency and lower prices, while abuse of monopoly power allows firms to raise prices and restrict output. For these reasons, competition law is needed to curb unfair trade practices like predation, mergers that reduce competition, and cartelization in order to promote a truly competitive economy.
The document discusses competition law and policy in India, noting that competition law aims to promote economic efficiency and consumer welfare by preventing anti-competitive practices like cartels and abuse of dominance, and regulating mergers and acquisitions. It also explains how various government policies around sectors like trade, industry and economic regulation should be reformed to promote more competition. The Competition Commission of India is established as the primary regulator to enforce competition law and investigate anti-competitive agreements, abuse of dominance, and mergers and acquisitions.
This document provides definitions for various business economics concepts. Some key points include:
- Abnormal profit refers to profits above normal levels due to barriers to entry preventing competition.
- Oligopoly is a market structure with a small number of producers where each considers the actions of others.
- Economies of scale refer to lower long-run average costs from increased output, while diseconomies are higher costs from outputs beyond the optimal scale.
- Barriers to entry protect incumbent firms by making entry difficult for new competitors.
Competition law and policy aims to promote fair competition in markets. The Competition Act of 2002 established the Competition Commission of India (CCI) to prevent anti-competitive practices. The CCI prohibits anti-competitive agreements between companies, abuse of dominant market positions, and regulates mergers and acquisitions. It investigates complaints and makes orders to protect competition and consumers. The objectives of the Act are to prevent anti-competitive behavior and practices, promote fair competition, protect consumer interests and ensure freedom of trade in India.
Here is an analysis of the proposed merger between United Insurance Company and Shama Pl:
Valuation Process:
- Determine the pre-merger value of each company using standard valuation methods like DCF, comparable company analysis, precedent transaction analysis etc.
- Estimate synergies from the merger like cost savings, revenue enhancements, tax benefits etc. Quantify the net present value of synergies.
- Allocate synergies between the combining companies based on relative size, synergies realized from each function etc.
- Add allocated synergies to the pre-merger value of each company to arrive at post-merger value.
- Determine exchange ratio for the merger based on post-merger values.
An oligopoly is a market structure with few dominant firms. Firms in an oligopoly are interdependent and must consider competitors' reactions when setting prices or strategies. While competition can occur, oligopolies sometimes engage in collusive behavior such as tacitly setting prices to maximize profits, restricting output. Examples include industries like airlines, banking, and brewing.
This document discusses coordinated effects that can arise from horizontal mergers. It defines coordinated effects as occurring when a merger makes tacit collusion between firms more likely or effective. It analyzes coordinated effects using the Airtours criteria for sustainable tacit collusion and the European Commission's checklist approach. The checklist approach involves assessing whether the merger would allow firms to reach tacit agreements, whether market characteristics would allow any agreements to be sustained, and whether the merger would make coordination more likely or effective. It also differentiates coordinated effects from unilateral effects that can arise without tacit agreements between firms.
The document discusses different market structures including perfect competition, monopolistic competition, oligopoly, and monopoly. It examines factors that determine market structure such as the number of firms, product differentiation, control over price, and barriers to entry/exit. Market structure influences firms' pricing and output decisions. The document also explores topics like non-price competition, government regulation, and balancing private vs public interests.
This document discusses consolidation and concentration in the agribusiness sector. It notes the trend toward fewer and larger firms across food and agriculture businesses. Extensive consolidation can result in economic concentration where one or a few large firms have the power to influence prices. The document examines different types of consolidation like horizontal and vertical. It also outlines concerns that consolidation raises for farmers like facing market power from large firms, loss of price discovery, and environmental impacts. Finally, it discusses potential measures to address issues stemming from consolidation like affecting industry structure, increasing bargaining power, and regulating market behavior.
The document discusses the progression from the MRTP Act to the Competition Act in India. It provides definitions for key terms related to monopolistic trade practices, restrictive trade practices, unfair trade practices, and combinations. It outlines the objectives of the Competition Act to eliminate anti-competitive practices and protect consumer interests. The Competition Commission of India was established to enforce the Competition Act and assumes the role of competition advocacy.
The document discusses competition law and policy in India. It provides definitions of key concepts like competition and anti-competitive practices. It summarizes the Competition Act of 2002, which established the Competition Commission of India. The Commission regulates anti-competitive agreements and mergers/acquisitions. The document also discusses advocacy efforts to promote competition.
The document discusses the CENVAT Credit Rules of 2017 in India. It aims to reduce the tax burden on customers by allowing manufacturers to claim credits for taxes paid on inputs. This ensures smooth flow of duties without additional costs and reduces double taxation. The rules impose conditions for credits and allow refunds for exports. Non-compliance can result in penalties or confiscation of goods.
An endorsement agreement is a contract between a company and a celebrity or athlete to promote the company's products or services. The agreement specifies the obligations of both parties, such as public appearances the celebrity must make or compensation for the celebrity. Key clauses address the term of the agreement, indemnification, dispute resolution, termination conditions, intellectual property rights, and consequences for violating the agreement. Endorsement agreements benefit companies by building brand credibility, but they come at a high cost to hire famous endorsers. Both parties must fully understand the agreement before signing.
This document provides an overview of the Foreign Exchange Management Act (FEMA) of 1999 in India. It defines capital account transactions as those that alter assets or liabilities outside of India, and current account transactions as other payments like those related to trade, services, interest, travel expenses. FEMA restricts unauthorized dealing in foreign exchange. Exports must be declared with accurate value information. There are penalties for violations, and an appeal structure is outlined. The key differences between the old FERA and new FEMA are that FEMA aims to promote foreign trade and reserves with a more flexible approach, using residency rules of over 182 days rather than citizenship alone.
The document summarizes the Foreign Exchange Management Act of 1999 (FEMA) in India. FEMA replaced the older Foreign Exchange Regulation Act of 1973 (FERA) to liberalize foreign exchange controls and remove harsh penalties. FEMA aims to simplify external trade, promote a healthy foreign exchange market, control non-resident business/investment, and effectively utilize foreign exchange resources. It applies to individuals, companies, and organizations in India or owned/controlled by Indian residents. Authorized persons under FEMA can facilitate foreign exchange transactions and include authorized dealers, money changers, offshore banking units, and others approved by the Reserve Bank of India.
1. Conspiracy can be considered a tort as well as a criminal offense. Under tort law, conspiracy involves an unlawful agreement between two or more persons to harm another or use unlawful means against a claimant.
2. There are three main types of conspiracy under tort: general conspiracy which aims to harm others, conspiracy to injure where the sole purpose is to damage someone, and unlawful means conspiracy which involves using illegal actions against a claimant.
3. While conspiracy under tort is recognized in India, it remains an underdeveloped area of law, and proving conspiracy against a group is challenging if all members cannot be shown to be complicit. Further legal reforms are needed.
Know your rights protection against facial recognition software.Diganth Raj Sehgal
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2. Introduction
● Merger is a legal agreement between two or more existing companies to get together and form
a company. In other words, it’s a combination of two companies to form one legal entity.
Mergers and acquisitions come under competition law. In some countries, it’s also called
Antitrust laws. For example - The U.S. European competition law regulates and controls the
activities within the European Union.
● The objective of European Union competition law is to maintain the competition within the
European single market. It does by regulating anti-competitive conduct by companies, to
ensure that they do not create cartels and monopolies as it would damage the interest of the
others. Under European Union, there is a treaty called The Treaty On The Functioning Of The
European Union (TFEU). This treaty is the basis of European Union law. It sets the scope of
the EU’s authority to legislate in those areas where the EU operates
3. Terminology
The meaning of ‘merger’ and ‘concentration’
Merger -
Merger is a voluntary activity by two companies to get together and set up one legal entity. Companies which merge together
are usually equal in terms of size, customers, scale of operations, etc. Generally companies merger to increase their market
share, reduce their production and operating costs, expand their territories, unite common products, grow revenues and
increase their overall profits
Concentration -
Under EU competition law, a concentration arises when there is a change in the control of an entity engaged in economic
activity, which the EC calls an undertaking, on a lasting basis. It either involves:
● The merger of two or more previously independent undertakings;
● The acquisition of direct or indirect control of an undertaking; or
● The acquisition of joint control over a “full-function joint venture”.
4. The horizontal, vertical and conglomerate mergers
Horizontal Merger -
When two companies operating in the same type of industry mutually agree and merges together to form one legal entity is known as a
horizontal merger. It’s a part of consolidation between two competitors offering the same kind of products or services. The goal of the
merger is to have a large business, large market share and large scale of economies. The synergy formed by the merger enhances the
efficiency of the business performance and financial gains. The cost-efficiency also leads to increased margins of the company. For
example - The merger of Daimler-Benz and Chrysler.
Vertical Merger -
A vertical merger is a merger between companies that have an actual Supplier-customer relationship. It’s a merger between players that
are complementary to each other. Vertical mergers also have their effects but are different from horizontal mergers. Examples of
vertical mergers are - Producer and retailer, car parts producer and car producer, cement producer and concrete producer.
Conglomerate Merger -
Conglomerate merger is a merger which is neither horizontal nor vertical. It is a different kind of merger. It is a merger between the
firms which are non-competitive in nature. The firms may operate in different industries or geographical regions. For example - Walt
Disney Company and The American Broadcasting Company
5. Merger Activity
❖ As stated above, companies combining with each other is known as merger or merger activity. Merger activity helps
to expand markets, bring benefits to them and to the economy, but some combinations may reduce competition.
Merger activity further helps to develop new products more efficiently and to reduce production and distribution
costs. Through the increased efficiency the market may become more competitive and consumers may benefit from
higher quality goods at fair prices.
❖ As mentioned above, some mergers may reduce the competition in the market by creating a dominant player in the
market. This is likely to harm the consumers as it will give the companies the right to exploit consumers by charging
high prices and reducing the consumer’s choice. Mergers are capable of increasing competition in the European
industry, improving the conditions of growth and raising the standard of European Union (EU). Reorganisations or
mergers are welcome but they should not violate competition laws and should not impede the fair competition.
6. The Proliferation of Systems of Merger Control
❖ The proliferation of merger review around the world has given rise to a broad number of commercial
and strategic issues. These issues are for those parties who intend to engage in merger activities. The
process of merger at an international level has added significant layers of complexity and has made
the merger process very bewildering and expensive.
❖ A large number of jurisdictions are now involved in the merger review process. The thresholds for
merger filings are many, the timing of merger review is different and it is subject to different levels
of procedural complexity.
7. Why do firms merge?
Economics of scale and scope
Economies of scale are the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output
decreasing with increasing scale. The merger will help the company to increase the scale of operations and economies of large scale can
be achieved A merged company will have more resources as compared to an indiviual company.. A large economy can occur because of
intensive utilisation of production facilities, distribution network, research and development facilities
Other efficiencies
Mergers help the firms to increase their efficiency in different ways. They help to expand research and development opportunities or
more robust manufacturing operations. Sometimes companies may want to combine to leverage costly manufacture operations. By
merging, companies complement a current product or service. Two firms may be able to combine their products and services to gain a
competitive edge over the others in the market.
National champions
National champion is a government policy in which large organisations seek profits and advance the interests of the nation. They
usually set the policies which favour these organisations. By giving an unfair advantage against market competition, the policy
promotes economic nationalism domestically and global pre-eminence abroad contrary to the free market. This policy is mostly
practised in every country’s sector.
8. Greed, vanity, fear and drugs
Sometimes mergers are fuelled by the speculative greed of individuals or companies or the personal vanity of a particular
swashbuckling senior executive. Some mergers seem to be motivated by fear. If an undertaking in a particular sector appears to be
involved in mergers, it may be considered important not to be left behind in the process of industry consolidation. For some
individuals, the deal-making process can be the same as the feet of mood-changing drugs, altogether more exciting than the mundane
task of managing a firm well.
Increasing market power
One of the reasons behind the merger is increasing market power. By merging the companies they eliminate competition, increase their
market share, control over demand and supply and raise prices according to their own wish. These kinds of mergers tends to reduce
competition in the market. It usually emerges as a monopolist agenda from the combinations of powerful enterprises, along with the
unemployment which has a very adverse effect on the economy of the country. As the competition is reduced, it gives companies the
power to fix prices as per their wish. They can charger unnecessary higher prices from the consumers. Therefore, these kinds of
mergers are often scrutinised.
9. What is the purpose of merger control?
The fundamental question arises here that why there is a need to control the mergers in the market.
There are many reasons why governments, shareholders, consumers, and firms may object to these
mergers. A government may not like the merger of a foreign firm with the native firm, or a merger
may not fit with the industrial policy of the government, or if a merger leads to unemployment the
government may not approve that. A firm may object to the merger because it can become a target
of a hostile bid, or a merger can give an edge to the other firms. Shareholders may think that the
merger may have an effect on the value of their shares. These are individual interests of different
entities but the competition law focuses on maintaining the competition with the aim of
maximizing consumer welfare.
10. Is merger control necessary
The article 102 under TFEU strongly forbids the abuse of market power. The article not only focuses on simply
preventing future abuses but it talks about maintaining competitive market structures which leads to better outcomes
for consumers.
Therefore, Article 102 of the TFEU says that -
Any abuse by one or more undertakings of a dominant position within the internal market or in a substantial part of it
shall be prohibited as incompatible with the internal market in so far as it may affect trade between Member States.
Such abuse may, in particular, consist in:
(a) directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions;
(b) limiting production, markets or technical development to the prejudice of consumers;
(c) applying dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a
competitive disadvantage;
(d) making the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which,
by their nature or according to commercial usage, have no connection with the subject of such contracts.
11. Theories of competitive harm
Unilateral or non-coordinated effects
Unilateral effects are also known as non-coordinated effects. These arise when the competition between the products of the merging
firms is eliminated. It allows the entity to unilaterally exercise power over the market like a dominant entity. It can raise the price of the
one or both merging parties’ products.
Coordinated effects
Coordination does not require a written or explicit agreement. It is an implied understanding among the market participants.
Coordinated effects talks about whether the merger will make it more likely for a group of firms to coordinate and raise prices or not.
There are a number of factors whether the participants are able to:
● Align their incentives and reach a common understanding
● Collectively raise market prices
● Monitor and detect deviations
● Punish deviations from the common understanding or agreement.
Vertical effects
In microeconomics and management vertical merger is an arrangement in which a supply chain of a company is owned by that
company. Each member of the chain supplies a different product and combine it to satisfy a common need. Consider this example - if a
car manufacturer purchases tires from a particular shop who further supplies to many car manufacturers. Eventually, that car
manufacturer purchases the shop or merges with the tire supplier. Then, the car manufacturer may control the supply of tires to the
market and may destroy fair competition
12. Conglomerate effects
Conglomerate merger is a merger in which firms are involved in totally unrelated business activities. These types of mergers
have several effects. They lead to diversification, an expanded customer base, and increased efficiency. As the companies
diversifies the risk of loss also lessens.
For example - if one business unit performs poor or not up to the mark, other units of the company can compensate for
losses. For example - if A company is specialised in radio and merges with company B specialised in manufacturing watches
to form company C, company C will then have access to a large customer base to which it can sell its different products
The counterfactual
The counterfactual method can be used to assess the effects of an actual event. It has always played an important role in EU
competition law. Counterfactuals are discussed under Article 101 guidelines and Article 102 guidance paper of TFEU. The
term counterfactual refers to the hypothetical situation in which merger could not take place. If the commission finds the
counterfactual to be significantly more pro-competitive than the merger situation, it would oppose the transaction unless
the parties offer adequate remedies. Because EU merger control takes place prior to the implementation of the merger, the
counterfactual in merger cases is usually the status quo ante (previously existing state of affairs). However, in certain
circumstances, the commission has adopted a more dynamic interpretation of the counterfactual.
13. Guidelines
There are a number of guidelines on the substantive assessment of mergers. Many competition authorities have
published guidelines on substantive assessment. Horizontal guidelines of the US, joint guidelines of the OFT
(Office of fair trading) and competition commission in the EU are some important guidelines. The European
Commission has published guidelines on the assessment of horizontal mergers and guidelines on the assessment
of non-horizontal mergers. Guidelines must strike a balance between providing guidance for firms and their
advisers as to what might be expected of a system of merger control and avoiding too much speculation, which can
lead to a loss of certainty.
A specific problem in systems of merger control is whether a merger which reduces competition but which leads to
gain in efficiency should be permitted or not. In certain circumstances, the European commission’s horizontal
guidelines take efficiencies into account within the overall assessment of a merger. Another issue that sometimes
arises is whether a merger should be allowed in order to save a failing firm even though there will be less
competition in the market after the merger than before. A failing firm defence does exist in US law has been
applied under the EUMR and is recognised in an appropriate case under the guidelines of the Uk competition
authorities.
14. Remedies
It is very common that most aspects of a particular merger gives rise to no competition concerns. However, it can
be possible that there are certain parts of the businesses of A and B that may overlap horizontally. In that case a
competition authority, rather prohibiting the entire transaction, may look for a remedy whereby its competition
concern is relieved and the rest of the deal is allowed to proceed. Some cases may require a complex remedy, for
example, a right of access to an essential facility or the licensing of technology to competitors on reasonable and
non-discriminatory terms. The OECD published Merger remedies in 2004 following roundtable discussions in
which a number of recommendations as to best practice were made. In 2005 the European Commission published
a merger remedies study in which it reviewed the effectiveness of 96 remedies.
15. Loss of efficiency and ‘short-termism’
Some commentators argue that mergers, far from promoting economic efficiency, have a disruptive effect upon the
management of one or both of the merged firms and may be detrimental to their long term projects. This claim is made in
particular of contested takeover bids, where it is possible that the management of the target company will either be removed
by the new shareholders or will resign rather than stay on in the new conditions. Sceptics of the way in which the market for
corporate control functions would argue that it is not inevitable that the decisions of shareholders will produce the best
result in the public interest, although it may yield the best financial deal for the shareholders themselves. In particular,
many would argue that a problem with takeovers is that they are motivated more by short-term profit-taking than by
genuine concern for the long term prospects of the company.
Concentration of wealth
Some may object mergers on the grounds that they lead to firms of such size with such power as to be contrary to a balanced
distribution of wealth. This is a socio-political argument, but one which has become more widely accepted as aggregate
industrial concentration (it is concerned with the measurement of large enterprises) with has increased. In the US the
merger control provisions laws were strengthened at a time when this problem was a dominant concern.
16. Unemployment and regional policy
This is another objection to mergers. Some say that mergers lead to the closure of factories or offices and result in serious
unemployment. Mergers that appear to have no regard for the social problems that may follow attract particular
opprobrium (criticism) from the sceptics of the free market.
Overseas control
Mergers may result in the control of indigenous firms passing to overseas companies, in which case any economic
advantages of the merger may be thought to be outweighed by the desirability of maintaining the decision-making process
and profits at home. Strong opposition was expressed in the US 2006 when the possibility of seaports there coming under
the control of Dubai ports became known. Many Uk firms have expanded abroad, in particular into the US. the case for
intervention against foreign takeovers may be more compelling where there is a lack of reciprocity between the laws of the
two countries: if the law of the country A prevents inward investment, whereas country B permits it, there may be a case for
blocking a takeover by a firm from A of a firm in B.
17. Special sectors
Some sectors of the economy - for example, the electronic and print media - are especially sensitive and this may
mean that concentration of ownership within them requires special consideration. In the UK, as in several other
countries, media mergers are subject to special provisions and mergers in industries such as oil, banking, and
defence may be particularly closely scrutinised; the UK also has a special regime for mergers in the water industry
and the Communications Act, 2003 contains special provision on change of control. Article 21 (4) of the EUMR
specifically recognises that member states may have a legitimate interest in investigating a merger other than the
grounds of harm to competition.
18. Designing a system of merger control
Whenever a country decides as a matter of policy to adopt a system of merger control, a number of issues have to be
addressed. The following are some of the issues that must be confronted while designing a system of merger control.
● Which transactions should be characterised as mergers? How should the acquisition of minority shareholdings and of
assets be dealt with?
● Will joint ventures be considered as a matter of merger control or under the legal provisions that prohibit cartels and
other anti-competitive agreements?
● To what extent should a system of merger control should apply to transactions consummated outside a country but
which have effects within it?
● What should be the time period within which a merger investigation must be completed?
● Who should make decisions in merger cases? A commission, A court, or A minister in the government?
19. Conclusion
As discussed in the article, it can be observed that there are many outcomes of mergers under EU competition law.
There are always a number of reasons behind the mergers. Therefore, it is important to figure out the possible
outcomes, both negative and positive before merging. If not properly examined and evaluated, it may lead to huge
losses.
20. Evaluation of merger decisions
Competition authorities increasingly evaluate the impact of their decisions to clear or modify mergers. This process of self-
evaluation enables authorities to test the accuracy of their predictions about individual mergers and to improve the quality
of future decision making.
Merger control and the public interest
A number of arguments can be made against the mergers that have nothing to do with the maintenance of competitive
markets. It would be possible to conceive a system of merger control that allows intervention for non competition reasons.