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Competition Act, 2002


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Competition Act, 2002

  1. 1. Competition Act, 2002 AFTERSCHO ☺ OL – DEVELOPING CHANGE MAKERS CENTRE FOR SOCIAL ENTREPRENEURSHIP PGPSE PROGRAMME – World’ Most Comprehensive programme in social entrepreneurship & spiritual entrepreneurship OPEN FOR ALL FREE FOR ALL AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
  2. 2. Competition Act, 2002 Dr. T.K. Jain. AFTERSCHO☺OL Centre for social entrepreneurship Bikaner M: 9414430763 [email_address] , AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
  3. 3. Objectives… <ul><li>To promote fair business practices </li></ul><ul><li>To control aspects of anti-competitive agreements, abuse of dominant position and regulation of competitions. </li></ul><ul><li>To prevent monopolies – as private monopolies can be detrimental to national economy </li></ul>
  4. 4. CCI <ul><li>Sec. 7 (1) </li></ul><ul><li>Competition commission of India – will be the apex body to look into the complaints relating to unfair practices, competition, monopoly etc. </li></ul><ul><li>The Commission shall consist of a Chairperson and not less than two and not more than ten other Members to be appointed by the Central Government. Provided that the Central Government shall appoint the Chairperson and a Member during the first year of the establishment of the Commission. [section 8(1)]. </li></ul>
  5. 5. Director General <ul><li>The Director General will investigate the complaints/references on receipt of orders from Commission and then submit his report to Commission. He will also conduct the cases before CCI. The Director General cannot conduct investigation suo motu . DG will be appointed by Central Government. </li></ul>
  6. 6. Working .. <ul><li>(a) Prohibition of anti-competitive agreements </li></ul><ul><li>(b) Prohibition of abuse of dominant position and </li></ul><ul><li>(c) Regulation of combinations. CCI will consist of judicial as well as non-judicial persons, On receipt of complaint or reference, CCI can issue order to Director General to investigate. His report will then be considered by CCI. The CCI will hear the concerned parties and then pass necessary orders </li></ul>
  7. 7. Anti - Competitive agreements void <ul><li>No enterprise or association of enterprises or person or association of persons shall enter into any agreement in respect of production, supply, distribution, storage, acquisition or control of goods or provision of services, which causes or is likely to cause an appreciable adverse effect on competition within India. [section 3(1)]. Any agreement entered into in contravention of the provisions contained in section 3(1) shall be void. [section 3(2)]. </li></ul>
  8. 8. No- misuse of dominant position .. <ul><li>No enterprise shall abuse its dominant position. [section 4(1)]. Note that dominant position‘ itself is not prohibited. What is prohibited is its misuse. ―Dominant position‖ means a position of strength, enjoyed by an enterprise, in the relevant market, in India, which enables it to - ( i ) operate independently of competitive forces prevailing in the relevant market; or ( ii ) affect its competitors or consumers or the relevant market in its favour. [ Explanation (a) to section 4(2)] </li></ul>
  9. 9. Abolition of MRTPC <ul><li>Monopoloy and Restrictive Trade practices Commission (under MRTP Act) has been abolished. [section 66(1)]. Cases pending in respect of Monopolistic Trade Practices or Restrictive Trade Practices will be transferred to Competition Commission. [section 66(3)]. All cases of Unfair Trade Practices (except those relating to disparaging of goods) will be transferred to National Commission constituted under Consumer Protection Act. National Commission can transfer the cases to State Commission. [section 66(4)]. Cases in respect of disparaging of goods [section 36A(1)(x) of MRTP Act] will be transferred to Competition Commission. [section 66(5)]. Investigation pending with Director General of Investigation and Registration [DGIR] will be transferred to Competition Commission/National Commission </li></ul>
  10. 10. What is combination? <ul><li>Take over is one of the ways of increasing market dominance. The acquisition of one or more enterprises by one or more persons or merger or amalgamation of enterprises shall be treated as combination‘ of such enterprises and persons or enterprises in prescribed cases. Broadly, combination‘ can be either by acquisition or merger in one enterprise or an enterprise which belongs to a group </li></ul>
  11. 11. Stop misuse of combination <ul><li>No person or enterprise shall enter into a combination which causes or is likely to cause an appreciable adverse effect on competition within the relevant market in India and such a combination shall be void. [section 6(1)]. The definition and heading of the section itself means that it is regulation of combination‘. Thus, combination in itself is not prohibited. It will be held void only if it adversely affects competition . </li></ul>
  12. 12. Anti competitive practices… <ul><li>( a ) tie-in arrangement ( b ) exclusive supply agreement ( c ) exclusive distribution agreement ( d ) refusal to deal ( e ) re-sale price maintenance, - shall be an agreement in contravention of section 3(1), if such agreement causes or is likely to cause an appreciable adverse effect on competition in India. [section 3(4)]. Thus, there is no presumption that the act is adversely affecting competition. In other words, burden is on complainant to prove that the action / agreement is adversely affecting competition </li></ul>
  13. 13. About AFTERSCHO☺OL <ul><li>PGPSE - World’s most comprehensive programme on social entrepreneurship – after class 12 th </li></ul><ul><li>Flexible – fast changing to meet the requirements </li></ul><ul><li>Admission open throughout the year </li></ul><ul><li>Complete support from beginning to the end – from idea generation to making the project viable. </li></ul>
  14. 14. Branches of AFTERSCHO☺OL <ul><li>PGPSE programme is open all over the world as free online programme. </li></ul><ul><li>Those who complete PSPSE have the freedom to start branches of AFTERSCHO☺OL </li></ul><ul><li>A few branches have already started - one such branch is at KOTA (Rajasthan). </li></ul>
  15. 15. Workshop on social entrepreneurship <ul><li>We conduct workshop on social entrepreneurship – all over India and out of India also - in school, college, club, association or any such place - just send us a call and we will come to conduct the workshop on social entrepreeurship. </li></ul><ul><li>These workshops are great moments of learning, sharing, and commitments. </li></ul>
  16. 16. FREE ONLINE PROGRAMME <ul><li>AFTERSCHO☺OL is absolutely free programme available online – any person can join it. The programme has four components : </li></ul><ul><li>1. case studies – writing and analysing – using latest tools of management </li></ul><ul><li>2. articles / reports writing & presentation of them in conferences / seminars </li></ul><ul><li>3. Study material / books / ebooks / audio / audio visual material to support the study </li></ul><ul><li>4. business plan preparation and presentations of those plans in conferences / seminars </li></ul>
  17. 17. 100% placement / entrepreneurship <ul><li>AFTERSCHO☺OL has the record of 100% placement / entrepreneurship till date </li></ul><ul><li>Be assured of a bright career – if you join AFTERSCHO☺OL </li></ul>
  18. 18. Pursue professional courses along with PGPSE <ul><li>AFTERSCHO☺OL permits you to pursue distance education based professional / vocational courses and gives you support for that also. Many students are doing CA / CS/ ICWA / CMA / FRM / CFP / CFA and other courses along with PGPSE. </li></ul><ul><li>Come and join AFTERSCHO☺OL </li></ul>