COMPETITION LAW…..

Competition
• Is “a situation in a market in which firms or
sellers independently strive for the buyers’
patronage in order to achieve a particular
business objective for example, profits, sales
or market share” (World Bank, 1999)
 Competition Law
• It is a tool to implement and enforce competition
policy and to prevent and punish anti-competitive
business practices by firms and unnecessary
Government interference in the market.

• Competition Law generally covers 3 areas:

– Anti - Competitive Agreements, e.g., cartels,

– Abuse of Dominant Position by
enterprises, e.g., predatory pricing,
barriers to entry and

– Regulation of Mergers and Acquisitions

(M&As).
 The Competition Act,
The MRTP Act.
The MRTP Act is still the extant competition law
in India, as The Competition Act has not yet been
fully implemented.

MRTP Act was designed to ensure that the

operation of economic system doesn't result in
the concentration of economic power to the
common detriment and to prohibit such
monopolistic and restrictive trade practices
prejudicial to public interest.
 Competition Act
Under the Competition Act :
– No provision for Unfair Trade Practices
– Only Consumer Courts will have jurisdiction
– Pending cases will be continued by MRTPC for 2
years
– After 2 years :
• All cases (except Disparagement Cases) will be
transferred to National Commission under CPA
• All Disparagement Cases will be transferred to
Competition Commission of India.
 What are the functions of CCI?

• CCI shall prohibit anti-competitive agreements and abuse

of dominance, and regulate combinations (merger or
amalgamation or acquisition) through a process of
enquiry.
• It shall give opinion on competition issues on a reference
received from an authority established under any law
(statutory authority)/Central Government.
• CCI is also mandated to undertake competition
advocacy, create public awareness and impart training
on competition issues.
 Salient Features of the New
Competition Regime
• The Competition Act has been designed as an
omnibus code to deal with matters relating to the
existence and regulation of competition and
monopolies.
• Its objects are lofty, and include the promotion
and sustenance of competition in markets.
• Protection of consumer interests and ensuring
freedom of trade of other participants in the
market, all against the backdrop of the economic
development of the country .
 Anti-Competitive Agreements

 agreement to limit production & supply

 agreement to allocate markets
agreement to fix price
bid rigging or collusive bidding
exclusive supply
 resale price maintenance
 refusal to deal
 Powers of Competition
Commission as Regards
Agreements
• Penalty equal to three times the amount of profit made out of
such agreement or 10% of average turnover of the cartel for
preceding three years whichever is higher.
– direct parties to discontinue the agreement

– prohibit parties from re-entering such agreement

– direct modification of the agreement

 Conclusion
It is a question of time before the Competition
Act replaces the MRTP Act. The efficacy of the act
will be seen in its implementation. But is the
Competition Act truly reflective of the changing
economic milieu of our country? In an economic
situation, which can be best described as a mixed
economy; only time will tell whether the
Competition Act addresses the ground realities
that exist today. However, the new Act is
definitely a step in the right direction by
harmonizing the competition policy with
international trade and policy.
THANK YOU……