COMPETITION ACT -2002

INTRODUCTION
Because of globalization ,India
opened up its economy removing
controls and resorting to
liberalization. The MRTP Act 1969 has
become obsolete and there is need
for new competition law.

SALIANT FEATURES OF THE

ACT
PROHIBITION OF ANTI COMPETITIVE
AGREEMENTS.
PROHIBITION OF ABUSE OF
DOMINANCE.
REGULATION OF COMBINATIONS.
ESTABLISHMENT OF COMPITITION
COMMISSION OF INDIA AND
FUNCTIONS AND POWERS OF CCI.

 PROHIBITION OF ANTI COMPETITIVE

AGREEMENTS.

The competition bill deals with those agreements

between enterprises which have an appreciable
adverse effect on competition. This means that all
restrictive agreement are not held to be Anti
competitive. The agreements which have
appreciable adverse effect on competition areIf it directly or indirectly determines purchase or
sale prices
Limits or controls production ,supply, markets,
technical development, investment or provision of
services.
Shares the market or source of production.
Directly or indirectly results in collusive bidding.

PROHIBITION OF ABUSE OF
DOMINANT POSITION
The competition bill regulates all agreements,
which could result in abuse of dominance.
The expression dominant position means a position
of strength enjoyed by an enterprise in the relevant
market and also appreciably affect the relevant
market competition and consumers by its actions.
ABUSE would include agreements charging or
paying unfair prices , restriction of quantities,
markets and technical development. It includes
discriminatory behavior, predatory prices and any
exercise of market power leading to the prevention
and restriction of competition.

REGULATION OF
COMBINATIONS
The acquisition of one or more enterprises by
one or
more persons or merger
amalgamation of enterprises shall be a
combination of such enterprises and persons.
Sec( 6) of the competition Act provides that
combinations that cause or likely to cause
appreciable adverse impact on competition with
in the relevant market are void.
Sec6(2) makes it voluntary for the parties to
notify there proposed agreement or combination
to the competition commission of India.

Competition commission of India

Definition Sec-7- The commission shall be a body corporate by the aforesaid name having
perpetual succession and a common seal with power to acquire, hold and dispose of property.
The place of head office of the commission shall be decided by the central govt.
Composition Sec 8- The commission shall consist of a chairperson and not less than two and
not more than ten other members appointed by central govt.
A person who is qualified to be a judge of a high court or is having special knowledge of
international trade, economics,business,commerce,law, shall be eligible for appointment as a
chairperson or as a member.

DUTIES , POWERS AND FUNCTIONS

OF CCI
DUTIES
To eliminate practices having adverse
effect on competition.
Promote and sustain competition.
Protect the interest of the consumer
Ensure freedom of trade carried on by
other participants in market.

POWERS OF COMMISSION
Section 19 empowers the commission to conduct an inquiry
either on its own or on receipt of complaint from any
person, consumer, trade association, central govt, state
govt or a statutory authority in relation to an agreement
having appreciable adverse effect on competition, whether
an enterprise enjoys the dominant position or whether a
market constitute a relevant market.
Sec 33 empowers the commission to grant interim relief by
way of temporary injunction. In other words during an
inquiry before the commission if it is proved to the
satisfaction of the comm that an act of contravention has
been committed commission can grant a temporary
injunction restraining any party from carrying on such act
until the conclusion of such inquiry is reached.

 Section 34 empowers the commission to deal with

applications made to it by any applicant for recovery of
compensation from any enterprise for any loss or damage
suffered by him as a result of any contravention of the
provisions and to award compensation to such applicant.
Section 36 confers powers upon the commission to
regulate its own procedures while conducting inquires. The
commission shall not be bound by the procedure laid down
by the code of civil procedure 1908 but shall be guided by
the principle of natural justice.
Every order passed by the commission under the Act shall
be enforced by the commission in the same manner as if it
is a order made by a high court or the principal civil court.

PENALTIES AND OFFENCES

OFFENCE
Failure to comply with
directions given by the
commission or the
director general.
Making false statement or
omission to furnish
material information.
Failure to furnish any
particulars ,documents or
information ,willfully alters
,suppresses or destroy
any document

PENALTY
Rupees one lakh for
each day during
which such failure
continues.
Rupees fifty lakhs or
rupees one crore , as
may be determined
by the commission.
Rupees ten lakhs.

PENALTIES AND OFFENCES

Where any person
contravenes the
order of the
commission or any
condition or any
restriction subject
to which any
approval
sanctioned or
failure to pay the
penalty imposed

Imprisonment for a
term up to one
year or penalty in
lakhs.

IMPORTANT DEFINITIONS
ACQUISITION-It means directly or indirectly
acquiring or agreeing to acquire Shares, voting rights or assets of any enterprise
Control over management or control over assets
of any enterprise.
CARTEL-It includes an association of producers,
sellers,distributers ,traders or service
producers,who,by agreements amongst
themselves,limit,control or attempt to control
the production,distribution,sale or price of
goods and services.

DEFINITIONS
ENTERPRISE-It means a person or department of
govt.who or which is, or has been, engaged in any
activity, relating to the production, storage,supply,
distribution or control of articles or goods or the
provision of acquiring, holding, underwriting or dealing
with shares, debentures or other securities of any other
body corporate, either directly or through one or more
of its units located at same place or different places.
RELEVANT MARKET-It means the market which may be
determined by the commission with reference to the
relevant product market.
.