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.

1. Sumbitted by:-
Aastha Garg
Priyanka Yadav
Anjali Mishra

2. Is“asituation in amarket in which
firmsor sellersindependently strive
for thebuyers’ patronagein order to
achieveaparticular business
objectivefor example, profits, sales
or market share”

3. An Act to provide, keeping in view of theeconomic
development of thecountry, for the
establishment of aCommission to prevent practiceshaving
adverseeffect on
competition, to promoteand sustain competition in markets,
to protect theinterestsof
consumersand to ensurefreedom of tradecarried on by
other participantsin markets,
in India, and for mattersconnected therewith or incidental
thereto.

4.  Competition act, 2002 passed in january2003
 Competition commission of india established
under act in october,2003 with one member/ acting
chairman
 Enforcement provision not notified due to legal
challenge leading to process of amendments
 Competition act,2007 passed in october2007-stage
set for full activation of commission

7.  Is foundation of efficiently working market
system:
 Maximizes consumer welfare. Lower prices, wider
choice and better services.
 Accelerates economic growth; higher efficiency/
productivity.
 Generates innovation; dynamic efficiency.
 For enterprises provides level playing field ,
redressal against anti competitive practices.

9. These are agreements which cause or are likely
to cause an appreciable adverse effect on
competition within India:
Horizontal Agreements:
These are between and among competitors who are at the
same stage of production, supply, distribution, etc.
These are presumed to be illegal
Examples: cartels, bid rigging, collusive bidding, sharing
of markets, etc.

10. Vertical Agreements:
• Vertical Agreements are between parties at different stages of
production, supply, distribution, etc.
• These are not presumed illegal; are subject to rule of reason.
Examples:
tie-in arrangements, exclusive supply/distribution
agreements, refusal to deal.

14.  Combinations, in terms of the meaning given to
them in the Act, include mergers and acquisition,
acquiring of control and acquisition of shares ,
voting right, assets.
 in order to establish whether the higher
concentration in the market resulting from the
merger will increase the possibility of collusive or
unilaterally harmful behavior, it must first be
established as to what the relevant market is

15.  Notification of Combination to Commission is
voluntary.
 If notified, Commission to take a decision within
90 days on the combination. Decision may allow,
disallow, modify, etc. the combination.
 Combination assessed on rule of reason based on
14 factors.
 Combination can take suo motu action within
1year after combination.

16.  Commission is expected to regulate “Combinations”,
i.e., large mergers, acquisitions, etc. likely to have
appreciable adverse effect on competition.
• Threshold:
For single enterprise
 – Assets > Rs.1000 crores
 – Turnover > Rs.3000 crores

17. Threshold:
For group of enterprises
 – Assets > Rs.4000 crores
 – Turnover > Rs.12000 crores
Similarly, threshold is provided for overseas groups

18.  FTC,US successfully opposed (1997) Mergers
Between Staples and Office Depot- Two Office
Supplies Super Stores:
 Court accepted “office supplies super stores” as
relevant market used economic tool e.g. CR, HHI,
“Brown Shoe” indices
 Court recognized benefits to consumers by firms. But
found reasonable probability that proposed merger
may substantially lessen competition ; rejected
efficiency argument
 Issues involves predicting future structure/conduct
factors

20.  The Competition Commission of India, in terms of
advocacy provisions in the Act, is enabled to
participate in the formulation of the country’s
economic policies and to participate in the reviewing
of laws related to competition at the instance of the
Central Government.
 Commission is required to take measures for
promotion of Competition Advocacy, creating
Awareness and imparting Training about competition
issues [Section 49(3)]

21.  Advocacy means competition promotion through non-
enforcement measures
 For promotion of competition advocacy and creation of
awareness about competition issues, the Commission
may:-
i) Undertake appropriate programmes / activities etc.;
ii) Encourage and interact with the organizations of
stakeholders, academic community etc. to undertake
activities, programmes, studies, research work, etc. on
competition issues;