This document discusses predatory pricing, including defining it as when a dominant firm reduces prices below cost to eliminate competition. It outlines factors like dominance, barriers to entry, and excess capacity that enable predatory pricing. Various tests for identifying predatory pricing are described, including comparing prices to average variable cost. Indian competition law considers below-cost pricing with intent to reduce competition as an abuse of dominance. While the full theory of predatory pricing is complex, elements of it can still harm markets.
This presentation discusses cartels in India under the Competition Act 2002. It defines cartels and outlines their treatment in Sections 2 and 3 of the Act. Notable cases where cartels were found include those in the soda ash and cement industries. Joint ventures are exempt if they improve efficiency. Suggestions include better detecting small cartels through more regulatory units. In conclusion, the Competition Commission of India has stronger powers than its predecessor to address anticompetitive cartels.
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.
A PRESENTATION ON COMPETITION ACT, 2002 WITH RECENT AMENDEMENTS. PRESENTED BY MADHUSUDAN NARAYA, STUDENT OF MBA AT NATIONAL INSTITUTE OF TECHNOLOGY, DUGAPUR, WEST BENGAL.
THIS TOPIC IS NECESSARY FOR MARKETING PEOPLE AND THE SLIDE CONTAINS THE CASES ALSO !!
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.
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
Competition Act 2002, Monopolies and Restrictive Trade Practices Act, 1969, Anti Competitive Agreement, Abuse of Dominant Position, Combination, Competition Commission of India
Intelectual property right and Passing OffPARTH PATEL
This document discusses trademarks and the law of passing off under Indian trademark law. It defines a trademark as a distinctive sign that identifies the source of goods/services. Indian law provides statutory protection under the Trademark Act of 1999 and common law protection under passing off. Passing off is a tort that protects goodwill from misrepresentation that causes damage. To succeed in a passing off claim, the plaintiff must prove reputation of goods, possibility of deception, and likelihood of damages. The key elements and tests for passing off are discussed, along with factors courts consider and differences between passing off and trademark infringement.
This presentation discusses cartels in India under the Competition Act 2002. It defines cartels and outlines their treatment in Sections 2 and 3 of the Act. Notable cases where cartels were found include those in the soda ash and cement industries. Joint ventures are exempt if they improve efficiency. Suggestions include better detecting small cartels through more regulatory units. In conclusion, the Competition Commission of India has stronger powers than its predecessor to address anticompetitive cartels.
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.
A PRESENTATION ON COMPETITION ACT, 2002 WITH RECENT AMENDEMENTS. PRESENTED BY MADHUSUDAN NARAYA, STUDENT OF MBA AT NATIONAL INSTITUTE OF TECHNOLOGY, DUGAPUR, WEST BENGAL.
THIS TOPIC IS NECESSARY FOR MARKETING PEOPLE AND THE SLIDE CONTAINS THE CASES ALSO !!
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.
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
Competition Act 2002, Monopolies and Restrictive Trade Practices Act, 1969, Anti Competitive Agreement, Abuse of Dominant Position, Combination, Competition Commission of India
Intelectual property right and Passing OffPARTH PATEL
This document discusses trademarks and the law of passing off under Indian trademark law. It defines a trademark as a distinctive sign that identifies the source of goods/services. Indian law provides statutory protection under the Trademark Act of 1999 and common law protection under passing off. Passing off is a tort that protects goodwill from misrepresentation that causes damage. To succeed in a passing off claim, the plaintiff must prove reputation of goods, possibility of deception, and likelihood of damages. The key elements and tests for passing off are discussed, along with factors courts consider and differences between passing off and trademark infringement.
Compare the judgements of Bhatia and Balco and Secondly what in your opinion ...Suneeta Mohapatra
This document provides a summary and comparison of two important cases related to international commercial arbitration in India - Bhatia International v Bulk Trading S.A. and Bharat Aluminium Company v Kaiser Aluminium Technical Service. It summarizes the key issues and findings in Bhatia International, which held that Part I of the Indian Arbitration and Conciliation Act applies to arbitrations seated outside India. It then summarizes the counter arguments and findings in BALCO, which overruled Bhatia International and held that Part I does not apply to arbitrations seated outside India. The document compares the reasoning provided in the two cases and analyzes how BALCO addressed the issues raised in Bhatia International.
Doctrine of indoor management and piercing of corporate veilGurpreet Chahal
The document summarizes the doctrines of indoor management and piercing the corporate veil under Indian law. It provides details on:
1) The doctrine of indoor management states that anyone contracting with a company can refer to its memorandum and articles, which are public documents. It protects outsiders unless they have notice of any irregularities.
2) Piercing the corporate veil allows courts to make individuals behind a company liable for its debts if it is used for fraudulent purposes.
3) Statutes and courts may pierce the veil to enforce revenue laws, prevent fraud or improper conduct, or determine an enemy character during war.
1. Competition between organizations provides benefits like promoting growth, advancing civilization, and forcing creativity, but can also lead to anti-competitive practices.
2. The Competition Act of 2002 was established to prevent anti-competitive agreements and abuse of dominant market positions in India.
3. The Act prohibits anti-competitive horizontal agreements between competitors to fix prices or limit production, as well as abuse of dominant market positions by single companies.
The Competition Commission of India (CCI) adjudicates disputes involving allegations of abuse of dominance. Section 4 of the Competition Act prohibits abuse of a dominant position in the market. The CCI considers factors like imposing unfair conditions, limiting production, restricting market access, and leveraging dominance between markets. The CCI assesses dominance based on an enterprise's market share and impact on competitors and consumers in the properly defined relevant market. While dominance alone is not prohibited, the CCI has ruled that abuse of a dominant position violates the Competition Act.
The mischief rule is used to determine the intention of Parliament when enacting legislation. It looks at the problem or defect that the law was meant to address, known as the "mischief." Heydon's Case established four questions to determine the mischief: 1) what was the common law prior to the Act, 2) what issue was the common law not addressing, 3) how does the Act aim to remedy this, and 4) what was the purpose of the remedy. Later cases like Smith v Hughes and Elliott v Grey applied the mischief rule broadly to find defendants guilty in order to suppress the mischief, even when a literal reading may have found otherwise. The mischief rule aims to achieve Parliament's intent but
The document provides definitions and explanations of key concepts from the Competition Act 2002 in India. It defines terms like agreement, enterprise, consumer, abuse of dominance, anti-competitive agreements, combinations, and horizontal and vertical agreements. It explains provisions around prohibition of anti-competitive agreements and abuse of dominant position. It also summarizes rules around combinations, including notification requirements and waiting periods.
Case presentation on anti competitive agreementsGaurav Singh
The document summarizes an Indian Competition Commission case regarding alleged anti-competitive practices in the automobile industry. The Commission found that original equipment manufacturers (OEMs) dominate three separate relevant markets: car sales, spare parts sales, and repair/maintenance. It ruled that OEMs' agreements restricting independent suppliers' and dealers' sales of spare parts amounted to abuse of dominance and anti-competitive vertical agreements. The Commission imposed fines and ordered OEMs to allow open spare parts markets and independent repairers access to parts/tools.
Ppt on Competition Act, 2002 presented on 17th May 2015 at Chinmay Tutorials by CS Professional Students Abhishek Agarwal, Aditya Rana, Sakshi Gupta, Shreya Chaturvedi, Shipra Pareek
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 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.
The document discusses competition law in India. It provides background on the Monopolies and Restrictive Trade Practices Act of 1969, which was India's first competition law. This was replaced by the landmark Competition Act of 2002, which established the Competition Commission of India to promote competition and prevent anti-competitive practices. The Act prohibits anti-competitive agreements between enterprises, abuse of dominant market positions, and regulates mergers and acquisitions. It aims to protect consumer welfare and ensure freedom of trade.
1) The doctrine of constructive notice states that any person dealing with a company is assumed to be aware of the contents of the company's memorandum and articles of association, even if they have not actually read them.
2) The doctrine of indoor management protects outsiders dealing with a company in good faith from internal irregularities, as long as the dealings are consistent with the documents available to the public.
3) There are exceptions to the doctrine of indoor management, such as when the outsider had knowledge of irregularities, did not read the company's articles, acted negligently, or where forgery or illegality was involved.
WHAT IS INSIDER TRADING???
Insider trading is dealing in securities of a listed company by any person who has knowledge of material “inside” information which is not known to the general public.
WHO IS INSIDER???
Insider is the person who is “connected” with the company , who could have the unpublished price sensitive information or receive the information from somebody in the company.
CONNECTED PERSON WITH DETAILED CLARIFICATION
Any person who is or has been associated with company, in any manner, during the six months prior to the concerned act:
An immediate relative to the connected person.
A banker of the company.
An official of stock Exchange or of clearing corporation.
A holding/associate/subsidiary company.
WHAT INCLUDES TRADING ?
WHO ARE INSIDER TRADERS?
Corporate officers, directors ,and employees who traded the corporations securities after learning of significant, confidential corporate developments.
Friends, business associates, family members and employees of law, banking and brokerage firms who were given such information to provide services to the corporation whose securities they traded.
GOVERNING REGULATIONS
Securities & Exchange Board Of India Act,1992
SEBI (Insider Trading) Regulations,1992
SEBI (PIT) (Amendment) Regulations,2002
SEBI (PIT) (Amendment) Regulations,2003
SEBI (PIT) (Amendment) Regulations,2008
SEBI (PIT) (Amendment) Regulations,2011
HISTORY BEHIND INSIDER TRADING IN INDIA
Insider trading in India was unhindered in its 130 year old stock market till about 1970.
In 1979,the Sachar Committee recommended amendments to the companies Act,1956 to restrict prohibit the dealings of employees. Penalties were also suggested to prevent the insider trading.
In 1989 the Abid Hussain Committee recommended that the insider trading activities may be penalized by civil and criminal proceedings and also suggested the SEBI formulate the regulations and governing codes to prevent unfair dealings.
UNPUBLISHED PRICE SENSITIVE INFORMATION
REGULATORY ASPECTS OF PROHIBITION OF INSIDER TRADING
SEBI prohibition of Insider Trading regulation 1995.
Section 11(2) E of companies act 1956 prohibits the insider trading.
WHY THERE IS NEED FOR PROHIBITION OF INSIDER TRADING???
As per SEBI the Prohibition of Insider Trading is required to make securities market:
Fair and Transparent.
To have a Level Playing Field for all the participants in the market.
For free flow of information and avoid information asymmetry.
CASE STUDY
HLL – BBLIL MERGER CASE
HLL-BROOKBOND LIPTON INDIA LTD
The case primarily involves 4 pa
Casus omissus, interpretation of statutespoonamraj2010
The document discusses the legal concept of "casus omissus" which refers to a situation not provided for in the language of a statute. It notes that courts cannot supply omissions or legislate, they can only interpret the law. It provides examples from case law where courts have both refused to supply omissions due to clear legislative intent, and in other cases have supplied omitted words to avoid making a statute null. The document outlines principles from cases related to supplying omissions and harmonious construction of statutes.
The document discusses the "Doctrine of Indoor Management" or "Turquand rule", which states that an outsider dealing with a company can assume that internal procedures were followed correctly, based on what is stated in the company's Memorandum and Articles. However, there are exceptions if the outsider was negligent, ignored the Articles, or had knowledge of any irregularities in how the company followed its internal processes. The rule also does not apply if forgery was involved or if the circumstances around the transaction were suspicious enough to require further inquiry.
This document summarizes John Austin's analytical positivism school of jurisprudence. It outlines that Austin viewed law as the command of the sovereign, with three key aspects: 1) commands are general rules for a community backed by sanctions, 2) a sovereign is the ultimate human source of law, and 3) law and morality are separate, with law defined by its coercive power rather than moral content. The document also notes chief legal philosophers of this school and some criticisms of Austin's theory.
This document discusses the definitions and differences between conditions and warranties in a sale of goods contract under the Sale of Goods Act 1930. A condition is an essential term that if breached allows the innocent party to terminate the contract. A warranty is a collateral term, where a breach only permits damages but not termination. Breach of a condition can be treated as breach of warranty in some situations like if the buyer waives the right to terminate. The key difference is conditions are essential to the purpose of the contract while warranties are collateral additions.
OLA was accused of abusing its dominant position and entering into anti-competitive agreements in the Delhi-NCR radio taxi market. Mega Cabs alleged that OLA used predatory pricing, discounts, and incentives to eliminate competition. However, the CCI ruled in favor of OLA, finding that OLA did not abuse its dominant position or enter into anti-competitive agreements in violation of the Competition Act.
The concept of Marriage under Private International Lawcarolineelias239
Marriage is a broad concept under Private international law. Many new rules had been laid down in various decisions, which had developed the international matrimonial law. The relevancy of monogamous or polygamous marriages. And the validity matters like formal validity and essential validity is also discussed here
RESEARCH Opinion - Predatory Pricing - Shourya BariShourya Bari
The document discusses predatory pricing and establishes cause of action against a respondent. It analyzes several factors:
1) The respondent quoted an unrealistically low price to gain entry into the market for supplying wagons to Indian Railways, indicating possible predatory pricing.
2) Two tests for predatory pricing are examined - pricing below cost and the ability to recoup losses through later monopoly profits. Barriers to entry and market share trends are also considered.
3) The appropriate measure of cost is analyzed, including average variable cost, average avoidable cost, and long-run average incremental cost.
Compare the judgements of Bhatia and Balco and Secondly what in your opinion ...Suneeta Mohapatra
This document provides a summary and comparison of two important cases related to international commercial arbitration in India - Bhatia International v Bulk Trading S.A. and Bharat Aluminium Company v Kaiser Aluminium Technical Service. It summarizes the key issues and findings in Bhatia International, which held that Part I of the Indian Arbitration and Conciliation Act applies to arbitrations seated outside India. It then summarizes the counter arguments and findings in BALCO, which overruled Bhatia International and held that Part I does not apply to arbitrations seated outside India. The document compares the reasoning provided in the two cases and analyzes how BALCO addressed the issues raised in Bhatia International.
Doctrine of indoor management and piercing of corporate veilGurpreet Chahal
The document summarizes the doctrines of indoor management and piercing the corporate veil under Indian law. It provides details on:
1) The doctrine of indoor management states that anyone contracting with a company can refer to its memorandum and articles, which are public documents. It protects outsiders unless they have notice of any irregularities.
2) Piercing the corporate veil allows courts to make individuals behind a company liable for its debts if it is used for fraudulent purposes.
3) Statutes and courts may pierce the veil to enforce revenue laws, prevent fraud or improper conduct, or determine an enemy character during war.
1. Competition between organizations provides benefits like promoting growth, advancing civilization, and forcing creativity, but can also lead to anti-competitive practices.
2. The Competition Act of 2002 was established to prevent anti-competitive agreements and abuse of dominant market positions in India.
3. The Act prohibits anti-competitive horizontal agreements between competitors to fix prices or limit production, as well as abuse of dominant market positions by single companies.
The Competition Commission of India (CCI) adjudicates disputes involving allegations of abuse of dominance. Section 4 of the Competition Act prohibits abuse of a dominant position in the market. The CCI considers factors like imposing unfair conditions, limiting production, restricting market access, and leveraging dominance between markets. The CCI assesses dominance based on an enterprise's market share and impact on competitors and consumers in the properly defined relevant market. While dominance alone is not prohibited, the CCI has ruled that abuse of a dominant position violates the Competition Act.
The mischief rule is used to determine the intention of Parliament when enacting legislation. It looks at the problem or defect that the law was meant to address, known as the "mischief." Heydon's Case established four questions to determine the mischief: 1) what was the common law prior to the Act, 2) what issue was the common law not addressing, 3) how does the Act aim to remedy this, and 4) what was the purpose of the remedy. Later cases like Smith v Hughes and Elliott v Grey applied the mischief rule broadly to find defendants guilty in order to suppress the mischief, even when a literal reading may have found otherwise. The mischief rule aims to achieve Parliament's intent but
The document provides definitions and explanations of key concepts from the Competition Act 2002 in India. It defines terms like agreement, enterprise, consumer, abuse of dominance, anti-competitive agreements, combinations, and horizontal and vertical agreements. It explains provisions around prohibition of anti-competitive agreements and abuse of dominant position. It also summarizes rules around combinations, including notification requirements and waiting periods.
Case presentation on anti competitive agreementsGaurav Singh
The document summarizes an Indian Competition Commission case regarding alleged anti-competitive practices in the automobile industry. The Commission found that original equipment manufacturers (OEMs) dominate three separate relevant markets: car sales, spare parts sales, and repair/maintenance. It ruled that OEMs' agreements restricting independent suppliers' and dealers' sales of spare parts amounted to abuse of dominance and anti-competitive vertical agreements. The Commission imposed fines and ordered OEMs to allow open spare parts markets and independent repairers access to parts/tools.
Ppt on Competition Act, 2002 presented on 17th May 2015 at Chinmay Tutorials by CS Professional Students Abhishek Agarwal, Aditya Rana, Sakshi Gupta, Shreya Chaturvedi, Shipra Pareek
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 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.
The document discusses competition law in India. It provides background on the Monopolies and Restrictive Trade Practices Act of 1969, which was India's first competition law. This was replaced by the landmark Competition Act of 2002, which established the Competition Commission of India to promote competition and prevent anti-competitive practices. The Act prohibits anti-competitive agreements between enterprises, abuse of dominant market positions, and regulates mergers and acquisitions. It aims to protect consumer welfare and ensure freedom of trade.
1) The doctrine of constructive notice states that any person dealing with a company is assumed to be aware of the contents of the company's memorandum and articles of association, even if they have not actually read them.
2) The doctrine of indoor management protects outsiders dealing with a company in good faith from internal irregularities, as long as the dealings are consistent with the documents available to the public.
3) There are exceptions to the doctrine of indoor management, such as when the outsider had knowledge of irregularities, did not read the company's articles, acted negligently, or where forgery or illegality was involved.
WHAT IS INSIDER TRADING???
Insider trading is dealing in securities of a listed company by any person who has knowledge of material “inside” information which is not known to the general public.
WHO IS INSIDER???
Insider is the person who is “connected” with the company , who could have the unpublished price sensitive information or receive the information from somebody in the company.
CONNECTED PERSON WITH DETAILED CLARIFICATION
Any person who is or has been associated with company, in any manner, during the six months prior to the concerned act:
An immediate relative to the connected person.
A banker of the company.
An official of stock Exchange or of clearing corporation.
A holding/associate/subsidiary company.
WHAT INCLUDES TRADING ?
WHO ARE INSIDER TRADERS?
Corporate officers, directors ,and employees who traded the corporations securities after learning of significant, confidential corporate developments.
Friends, business associates, family members and employees of law, banking and brokerage firms who were given such information to provide services to the corporation whose securities they traded.
GOVERNING REGULATIONS
Securities & Exchange Board Of India Act,1992
SEBI (Insider Trading) Regulations,1992
SEBI (PIT) (Amendment) Regulations,2002
SEBI (PIT) (Amendment) Regulations,2003
SEBI (PIT) (Amendment) Regulations,2008
SEBI (PIT) (Amendment) Regulations,2011
HISTORY BEHIND INSIDER TRADING IN INDIA
Insider trading in India was unhindered in its 130 year old stock market till about 1970.
In 1979,the Sachar Committee recommended amendments to the companies Act,1956 to restrict prohibit the dealings of employees. Penalties were also suggested to prevent the insider trading.
In 1989 the Abid Hussain Committee recommended that the insider trading activities may be penalized by civil and criminal proceedings and also suggested the SEBI formulate the regulations and governing codes to prevent unfair dealings.
UNPUBLISHED PRICE SENSITIVE INFORMATION
REGULATORY ASPECTS OF PROHIBITION OF INSIDER TRADING
SEBI prohibition of Insider Trading regulation 1995.
Section 11(2) E of companies act 1956 prohibits the insider trading.
WHY THERE IS NEED FOR PROHIBITION OF INSIDER TRADING???
As per SEBI the Prohibition of Insider Trading is required to make securities market:
Fair and Transparent.
To have a Level Playing Field for all the participants in the market.
For free flow of information and avoid information asymmetry.
CASE STUDY
HLL – BBLIL MERGER CASE
HLL-BROOKBOND LIPTON INDIA LTD
The case primarily involves 4 pa
Casus omissus, interpretation of statutespoonamraj2010
The document discusses the legal concept of "casus omissus" which refers to a situation not provided for in the language of a statute. It notes that courts cannot supply omissions or legislate, they can only interpret the law. It provides examples from case law where courts have both refused to supply omissions due to clear legislative intent, and in other cases have supplied omitted words to avoid making a statute null. The document outlines principles from cases related to supplying omissions and harmonious construction of statutes.
The document discusses the "Doctrine of Indoor Management" or "Turquand rule", which states that an outsider dealing with a company can assume that internal procedures were followed correctly, based on what is stated in the company's Memorandum and Articles. However, there are exceptions if the outsider was negligent, ignored the Articles, or had knowledge of any irregularities in how the company followed its internal processes. The rule also does not apply if forgery was involved or if the circumstances around the transaction were suspicious enough to require further inquiry.
This document summarizes John Austin's analytical positivism school of jurisprudence. It outlines that Austin viewed law as the command of the sovereign, with three key aspects: 1) commands are general rules for a community backed by sanctions, 2) a sovereign is the ultimate human source of law, and 3) law and morality are separate, with law defined by its coercive power rather than moral content. The document also notes chief legal philosophers of this school and some criticisms of Austin's theory.
This document discusses the definitions and differences between conditions and warranties in a sale of goods contract under the Sale of Goods Act 1930. A condition is an essential term that if breached allows the innocent party to terminate the contract. A warranty is a collateral term, where a breach only permits damages but not termination. Breach of a condition can be treated as breach of warranty in some situations like if the buyer waives the right to terminate. The key difference is conditions are essential to the purpose of the contract while warranties are collateral additions.
OLA was accused of abusing its dominant position and entering into anti-competitive agreements in the Delhi-NCR radio taxi market. Mega Cabs alleged that OLA used predatory pricing, discounts, and incentives to eliminate competition. However, the CCI ruled in favor of OLA, finding that OLA did not abuse its dominant position or enter into anti-competitive agreements in violation of the Competition Act.
The concept of Marriage under Private International Lawcarolineelias239
Marriage is a broad concept under Private international law. Many new rules had been laid down in various decisions, which had developed the international matrimonial law. The relevancy of monogamous or polygamous marriages. And the validity matters like formal validity and essential validity is also discussed here
RESEARCH Opinion - Predatory Pricing - Shourya BariShourya Bari
The document discusses predatory pricing and establishes cause of action against a respondent. It analyzes several factors:
1) The respondent quoted an unrealistically low price to gain entry into the market for supplying wagons to Indian Railways, indicating possible predatory pricing.
2) Two tests for predatory pricing are examined - pricing below cost and the ability to recoup losses through later monopoly profits. Barriers to entry and market share trends are also considered.
3) The appropriate measure of cost is analyzed, including average variable cost, average avoidable cost, and long-run average incremental cost.
Chapter 8 pricing strategies for firms with market powerskceducation
This chapter discusses pricing strategies for firms with market power. It introduces concepts such as monopoly pricing rules, price discrimination strategies including first, second and third degree discrimination. The chapter also covers pricing for monopolistic competition and discusses strategies for intense price competition between oligopolies such as price matching and inducing brand loyalty. Special pricing considerations like cross-subsidies, transfer pricing, and double marginalization are also addressed.
There are several methods that oligopolistic firms use to set prices. Cost-based pricing sets price based on average costs, with some markup added. Competition-based pricing matches prices of similar products already on the market. Demand-based pricing considers how demand responds to price changes, allowing for perceived-value pricing and price discrimination between market segments. Strategy-based pricing for new products involves either price skimming to extract high prices from early adopters or penetration pricing at low initial prices to gain market share. Firms typically combine multiple pricing methods rather than relying on just one.
Monopolistic competition is a market structure with many small businesses that produce differentiated products. Each business has some control over price due to product differentiation but faces competition from substitutable products. Key features include differentiated but substitutable products, many sellers and buyers, free entry and exit, and profit maximization through product differentiation and non-price competition like advertising. In long run equilibrium, firms earn only normal profits as entry by new firms eliminates excess profits. Output is lower and prices higher under monopolistic competition compared to perfect competition.
This document provides an overview of dominant position and abuse of dominance under EU competition law. It defines dominance as substantial market power over a period of time. Market shares above 30-50% are generally considered dominant but entry conditions also factor in. Abuses can be exclusionary, aimed at foreclosing rivals, or exploitative of customers. Specific abuses discussed include excessive pricing, loyalty rebates, tying and bundling, margin squeezes, and predatory pricing. The legal tests for these abuses generally examine whether conduct would exclude an equally efficient competitor or harm competition.
There are three major influences on pricing decisions: customers, competitors, and costs. Short-run pricing decisions have a time horizon of less than one year and consider relevant variable costs, while long-run decisions consider fixed costs and aim to earn a reasonable return on investment. Target costing sets a target price and derives the maximum allowable cost, while cost-plus pricing adds a markup to total costs to determine price.
The document discusses various pricing methods and objectives that companies consider when setting prices. It identifies the key steps in determining pricing objectives, which include considering financial, marketing and strategic company objectives as well as consumer factors. Some common pricing objectives mentioned are maximizing profit, increasing sales or market share. The document then outlines different methods for setting prices, including based on costs, competition, demand as well as strategic approaches like price skimming, penetration pricing, bundled pricing and cross-subsidization.
These slides by the OECD Competition Division introduce the OECD background note presented during the discussion on "Price discrimination" held during the 126th meeting of the OECD Competition Committee on 30 November 2016. More papers and presentations on the topic can be found out at www.oecd.org/daf/competition/price-discrimination.htm
Companies must consider laws governing fair pricing practices when setting prices. These laws address issues like price fixing, predatory pricing, and unfair discrimination within and across distribution channels. Price fixing involves competitors agreeing on prices, while predatory pricing undercuts rivals. Unfair discrimination occurs when sellers charge different prices to similar customers. Laws also regulate requiring retail prices and deceptive advertising of price savings.
Moving Beyond Reverse Auctions for Scalable, Sustainable ValueEmptoris, Inc
Learn how companies are stepping back from the one-size fits-all application of the reverse auction and leveraging more advanced sourcing solution that better support their sourcing strategies to generate sustainable savings of 7% in categories repeatedly sourced year after year.
For more information, please visit:
Emptoris website: http://www.emptoris.com/
Emptoris blog: http://emptorisinc.blogspot.com/
YouTube channel : http://www.youtube.com/emptoris
Be chap7 pricing strategies for firms with market powerfadzliskc
This document discusses pricing strategies for firms with market power. It explains how firms can maximize profits by setting price where marginal revenue equals marginal cost. The document also discusses different pricing strategies firms can use such as price discrimination, cross subsidies, transfer pricing, and price matching which allow firms to increase profits or mitigate competition. Special pricing rules are needed to address issues like double marginalization. Overall, the document provides an overview of various pricing concepts and strategies firms can employ when they have some market power.
This presentation by Kenya was made during the break-out Session 3, “Techniques and evidence for assessing predatory pricing, margin squeeze and exploitative abuses” in the discussion “Economic analysis and evidence in abuse cases” held at the 20th meeting of the OECD Global Forum on Competition on 7 December 2021. More papers and presentations on the topic can be found out at oe.cd/eac.
This document discusses pricing strategies for firms with market power. It explains how firms can maximize profits by setting price where marginal revenue equals marginal cost. The document also discusses various pricing strategies including price discrimination, cross subsidies, transfer pricing, and strategies to mitigate intense price competition. Firms can extract consumer surplus through these various pricing strategies.
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Predatory pricing as an abuse of dominant position
1. What is Pricing ?
• A method, companies use to price their
product or service.
• Organically, companies base their price on,
⁺ Production Cost
⁺ Labour cost
⁺ Advertisement expense
⁺ Profit.
3. PREDATORY PRICING AS AN ABUSE
OF DOMINANT POSITION
• Predatory Pricing refers to, the situation where a
dominant firm reduces its price to below cost level
for a period of time during which it will be able to
eliminate or contain a competitive force.
• once the predatory firm deems it safe enough; it
will raise its price to a level above the competitive
price level in order to recoup the losses made
during the reduction period.
• It is the dominant company in such a market which
is likely to have both the inclination and the
resources to finance such strategy and such pricing
can be equally ‘unfair’ to competitors.
4. Now the question that arises is why would a company
practice predatory pricing?
• The answer is simply to create a monopoly market and be the price maker.
Another reason for firms to do predatory pricing may be because it is a better
alternative to mergers.
• To understand the full implication of the concept of predatory pricing, let us first
understand the two terms dominant and abusive.
• A dominant company refers to a company holding a chunk of the share of the
relevant market. Dominant position is a position of strength, enjoyed by an
enterprise, in the relevant market,
• As far as the term abuse is concerned, it is very obvious that in every market there
will be a small number of dominant players and some smaller players. The small
players, individually, do not have the power to affect the market conditions as
such. But the dominant players, simply by virtue of the holding in the market, can
influence the market to a considerable extent. Now, when a dominant player uses
its power to influence the market to benefit itself in some way other than through
fair competition, it is known as an abuse of the dominance. That is, when a
company takes unfair advantage of its dominant position to hinder competition, it
is an abuse.
• Section 4(1) of the Indian Competition Act states that no enterprise shall abuse its
dominant position.
5. FACTORS DETERMINING
PREDATORY PRICING
• DOMINANCE
Since large capital reserves are needed to sustain the losses during
the below cost selling period, hence only a dominant firm would be
able to practice predatory pricing. The dominance of a company
can be analysed with regard to the relevant product and geographic
market by examining the potential demand and substitutability of
the products or services
• BARRIERS TO ENTRY AND RE-ENTRY
Successful predatory pricing requires certain level of entry barriers
to the market. Otherwise other potential rivals would immediately
re-enter the market once the predator raises its prices and by
adding their output to that of the predator drive the prices back to
competitive level.
6. continued
• EXCESS CAPACITY
Excess capacity is a pre-requisite for predatory pricing. The predator must be able to
absorb all the new demand created by its price cuts, and in the case of predation
against existing rivals, the predator must be able to absorb the rival’s sales. If it cannot
do both these, demand will exceed predator’s output and prices will have to rise,
which will take the pressure off the rivals and allow them to survive.
• NON-PRICE PREDATION
Non price predation includes excessive product differentiation, predatory
advertisement and investment, predatory product innovation. The main aim of these
non price predatory pricing is to raise the costs of the rival firms. If cost increase can
be imposed on the rivals, the predatory firm can profit immediately, even if the rivals
remain in business, this is because its margin will increase proportionately with rising
price levels. Another scenario is even if the prices remain constant, the predatory firm
gains market share as rival restricts output.
• OTHER FACTORS
Low price elasticity of demand facilitates recoupment as demand will decline
relatively less when the firm raises the market price. If a predator Journal article by
Greg Le Blanc; Rand Journal of Competition Law, Signalling Strength: Limit Pricing and
Predatory Pricing, Vol. 23, 1992. enjoys greater brand royalty, the less costly a
predatory pricing shall be for the firm. The more efficient the incumbent is to its rivals,
the less expensive it will be to conduct a predatory pricing campaign. Aaron S. Edlin,
“Predatory Pricing” Research Handbook on Economics of Antitrust, Ed. Einer Elhauge,
Edward Elgar, 2010.
7. IDENTIFICATION OF PREDATORY
PRICING
• Price-Cost Tests (PCT):
These tests examine whether the company or firm is incurring some losses for
legitimate reasons or just for Predatory Pricing. These tests look into the
detailed accounts of the firms and compare their costs and their prices to
reach the conclusion. The Price-Cost Tests may be of various types; the most
important among them being the Areeda-Turner test that if the sell price is
below the Short Run Average Variable Cost or the marginal cost, it is a case of
predatory pricing.
• The Two-Tier Test:
The Two-Tier Test of Joskow and Klevorick consists of two-tiers as the name
suggests. The first is the structural test to examine the type of the relevant
market. For example, if the market is a very competitive one with fairly low
entry barriers, then chances of a successful predatory pricing is almost nil.
The second tier is a behavioural test which examines the behaviour of one
particular enterprise in relation with the market to ascertain if there is an
abuse of dominance or not.
8. continued
• Test for Predatory Intention:
In India, below cost testing is also accompanied by proving intent, below-cost pricing “with a view to
reduce competition or eliminate the competitors” shall amount as abuse of dominance. In the price
abuse cases, exclusionary intent is very important as is given by the AKZO rule in the EC Competition
Law.
• Case C-62/86, AKZO Chemie BV v. Commission (1991)ECR I-3359
• Above Cost Pricing Test:
The Above-Cost Pricing Test is not a complete test but it says that even though the prices are not below
cost for that enterprise, it may still be Predatory Pricing. However, it brings an idea different from most
other prevalent tests, by its very premise. It applies to alleged predators that are selling at a price above
the costs, and not below but are still predating. To give an example, there may be a very dominant and
large enterprise which by virtue of its large scale of production has very low cost of production in
comparison to the cost incurred by other enterprises and hence may have a predatory effect in the long
run.
• Possibility of Recoupment:
The Possibility of Recoupment Test as the name implies, says that there should be a possibility for the
enterprise to recover its losses of the initial phase of the plan at some point of time. In Brooke Group
Ltd. V. Brown and Williamson Tobacco Corp, the Courts held that to hold an enterprise guilty of
predatory pricing, it must be shown that there is reasonable possibility of recoupment.
9. COST MEASURES ADOPTED IN INDIAN
COMPETITION LAW
• The Indian competition law has adopted Average Variable Cost as the
appropriate measure of cost, which is by and large the measure of cost
adopted in all jurisdictions. There is a presumption in most cases that
where the enterprise sets its sale price below its Average Variable Cost, it
has engaged in a predatory pricing practice. However, prices falling
between the ATC and AVC are also subject to inquiry, but in such case
specific intent would have to be shown. Prices set above the ATC are
unlikely to be challenged. The CCI also has proposed certain regulations
with respect to determining cost in cases of multi-product enterprises,
Joint products and By-products, transfer pricing, and captive consumption.
Once a predatory price allegation is established, the enterprise would be
said to have abused its dominant position. Where after inquiry, the CCI
finds that an enterprise in a dominant position is in contravention of the
provisions of Section 4, it may pass any of the orders specified under
Section 27 of the Act and may further under Section 28 of the Act direct
the division of an enterprise enjoying a dominant position to ensure that
such an enterprise does not abuse its dominant position.
10. INDIA: Test for Predatory Intention:
• In India, below cost testing is also accompanied by proving intent, below-cost pricing “with a view
to reduce competition or eliminate the competitors” shall amount as abuse of dominance. In the
price abuse cases, exclusionary intent is very important as is given by the AKZO rule in the EC
Competition Law.
• India has adopted AVC as the standard to measure price predation. The Commission also has the
discretion of adopting any other cost standard (such as avoidable cost, long run incremental cost, or
market value), if it considers doing so fit.
• In the MCX case in India, MCX alleged that NSE was practicing predatory pricing in the form of
waiver of transcription fee, admission free and data feed fee. The DG found NSE indeed was
abusing its dominance. NSE countered on two grounds- that there was no concrete evidence to
show the intent to do such an act that such low pricing was a promotional policy for the nascent
market and hence not predatory. NSE also claimed that they were offering the zero pricing policy as
its costs were zero.
• The CCI found NSE to be abusing its dominant position because that particular segment of the
market was no longer in the nascent stage; rather it was in its infant stage. Also the DG’s findings
regarding the costs showed that it was not zero.
• However, it is interesting to note that the CCI did not consider the pricing to be ‘predatory’ in the
strict sense of the term. Instead it was considered to be ‘Unfair’ and possible only by virtue of its
deep pockets and could not be sustained by its competitors.
• The Commission further commented that “if even zero pricing by dominant player cannot be
interpreted as unfair, while its competitor is slowly bleeding to death, then this Commission would
never be able to prevent any form of unfair pricing including predatory pricing in future”.
11. Important cases
• AKZO v. Commission [1991]
• Brooke Group Ltd. v. Brown & Williamson
Tobacco Corp.
• Tetra Pak International SA v. Commission
• Deutsch Post AG [2001]
• Matsushita v. Zenith Radio Corp.
12. CONCLUSION
• predatory pricing is a very complex mix of situations, intentions and
accounts. It is impossible to adhere to any one or more of the
practices tests as a conclusive test to prove predatory pricing. In
fact all the tests employed are merely indicative.
• It is true that parts of the existing theory is practical but the entire
theory of predatory pricing including the predation, bankruptcy of
all other firms, obtaining complete monopoly over relevant market,
no re-entry of any of the previous firms or entry of new firms in the
recoupment phase and finally recoupment of all losses is nothing
less than a fantasy, But having said so, it cannot be denied saying
that certain elements of predatory pricing are seen in the market
and have its harmful impacts. So even though the theory is applied
in parts, in its entirety, it is nothing more than a falsity.