ASSIGNMENT OF LEGAL ENVIRONMENT OF BUSINESS

ON

 Cyber Laws Application of Information

Technology Act.
 Competition Law in India

SUBMITTED TO: SUBMITTED BY:

Prof.( Dr.) Deepti Kiren Kratika Srivastava

MBA 3rd Semester

18BSPDD01C0095
Competition Law in India, 2002
In the wake of liberalization and privatization that was triggered in India in early nineties, a
realization gathered momentum that the existing Monopolistic and Restrictive Trade Practices
Act, 1969 ("MRTP Act") was not equipped adequately enough to tackle the competition aspect
of the Indian economy. With starting of the globalization process, Indian enterprises started
facing the heat of competition from domestic players as well as from global giants, which called
for level playing field and investor-friendly environment. Hence, need arose with regard to
competition laws to shift the focus from curbing monopolies to encouraging companies to invest
and grow, thereby promoting competition while preventing any abuse of market power.

Competition: meaning and benefits

Competition is a situation in market, in which sellers independently strive for buyer’s patronage
to achieve business objectives. Competition and liberalization, together unleash the
entrepreneurial forces in the economy. Competition offers wide array of choices to consumers at
reasonable prices, stimulates innovation and productivity, and leads to optimum allocation of
resources.

Abuse of market and need for new law

In an open market economy, some enterprises may undermine the market by resorting to anti-
competitive practices for short-term gains. These practices can completely nullify the benefits of
competition. It is for this reason that, while countries across the globe are increasingly embracing
market economy, they are also re-inforcing their economies through the enactment of
competition law and setting up competition regulatory authority.

In line with the international trend and to cope up with the changing realities India, consequently,
enacted the Competition Act, 2002 (hereinafter referred to as "the Act"). Designed as an
omnibus code to deal with matters relating to the existence and regulation of competition and
monopolies, the Act is intended to supersede and replace the MRTP Act. It is procedure
intensive and is structured in an uncomplicated manner that renders it more flexible and
compliance-oriented. Though the Act is not exclusivist and operates in tandem with other laws,
the provisions shall have effect notwithstanding anything inconsistent therewith contained in any
other law.

Three stage transition

The Act provides for three-staged transition, spanning the first three years from the date of
notification of the Act, wherein the Competition Commission of India (hereinafter, referred to
as "CCI") would replace the MRTP Commission.

First year

 At the onset of first year, MRTP Commission will cease to exist and CCI would assume
the role of an advisory body.
  The pending cases in the MRTP Commission relating to unfair trade practices would be
transferred to the concerned consumer courts under the Consumer Protection Act, 1986.

 The pending cases relating to monopolistic and restrictive trade practices have to be taken
up for adjudication by CCI.

Second year

 During the second year, CCI would scrutinize the anti-competitive practices.

Third year

 During the third year, CCI would begin regulating the mergers and acquisitions that will
have adverse impact on competition.

Departure from the MRTP Act

In a significant departure from the letter and spirit of the MRTP Act, the Act hinges on the
"Effect Theory" and does not categorically decry or condemn the existence of a monopoly in the
relevant market, rather the use of the monopoly status such that it operates to the detriment of the
potential and actual competitors is sought to be curbed.

 The earlier legislation, considered draconian in the changed scenario, was based on size
as a factor, while the new law is based on structure as a factor, aimed at bringing relief
to the players in the market.

 The Act empowers CCI to impose penalty on delinquent enterprises, whereas in the
MRTP Act there were no provisions regarding such enterprises

 MRTP Act could only pass "cease and desist" orders and did not have any other powers
to prevent or punish while the new law contains punitive provisions.

 MRTP Act was applicable to Private and Public sector undertakings only, whereas, the
new Act extends its reach to governmental departments engaged in business activities.

 As regards agreements, compulsory registration has been done away with.

 The most path-breaking chapter in the Act has been the emphasis on Competition
Advocacy that was not at all contemplated by the MRTP Act.

OBJECTS TO BE ACHIEVED

I. To check anti-competitive practices

II. To prohibit abuse of dominance

III. Regulation of combinations.

IV. To provide for the establishment of CCI, a quasi-judicial body to perform below mentioned
duties:

 Prevent practices having adverse impact on competition

 Promote and sustain competition in the market

 Protect consumer interests at large

 Ensure freedom of trade carried on by other participants in the market

 Look into matters connected therewith or incidental thereto.

1. ANTI-COMPETITIVE AGREEMENTS

The departure is reflected in section 3 of the Act, which states that enterprises, persons or
associations of enterprises or persons, including cartels, shall not enter into agreements in
respect of production, supply, distribution, storage, acquisition or control of goods or provision
of services, which cause or are likely to cause an "appreciable adverse impact" on competition
in India. Such agreements would consequently be considered void.

The species of agreement which would be considered to have an ‘appreciable adverse impact"
would be those agreements which:

 Directly or indirectly determine sale or purchase prices;

 Limit or control production, supply, markets, technical development, investment or

provision of services;

 Share the market or source of production or provision of services by allocation of inter

alia geographical area of market, nature of goods or number of customers or any other
similar way

 Directly or indirectly result in bid rigging or collusive bidding.

Further, the agreements, which are entered into in respect of various intellectual property rights
and which recognize the proprietary rights of one party over the other in respect of trademarks,
patents, copyrights, geographical indicators, industrial designs and semiconductors have been
withdrawn from the purview of "anti-competitive agreements". The inherently monopolistic
rights created in favor of bona fide holders of various forms of intellectual property have been
treated as sacrosanct.
2. ABUSE OF DOMINANT POSITION

Section 4 of the Act enjoins, "no enterprise shall abuse its dominant position". Dominant
position is the position of strength enjoyed by an enterprise in the relevant market, which enables
it to operate independently of competitive forces prevailing market, or affect it’s competitors or
consumers or the relevant market in it’s favour. There shall be an abuse of dominant position if
an enterprise indulges into the below mentioned activities:

 Directly or indirectly imposing discriminatory conditions in the purchase or sale of goods

or service, or setting prices in the purchase or sale (including predatory pricing) of
goods or services;

 Limiting or restricting the production of goods or provision of services or market

therefore; or limiting technical or scientific development relating to goods or services to
the prejudice of customers;

 Indulging in practice or practices resulting in the denial of market access

 Making conclusion of contracts subject to acceptance by other parties of supplementary

obligations, which has no connection with the subject of such contract;

 Utilization of the dominant position in one relevant market to enter into, or protect,
another relevant market.

3. COMBINATIONS

The Act is designed to regulate the operation and activities of "combinations", a term, which
contemplates acquisition, mergers or amalgamations. Combination that exceeds the threshold
limits specified in the Act in terms of assets or turnover, which causes or is likely to cause an
appreciable adverse impact on competition within the relevant market in India, can be scrutinized
by the Commission.

Threshold limits that would invite the scrutiny are specified below:

For acquisition:

 Combined assets of the firm more than Rs 3,000 crore (these limits are US $ 500 millions
in case one of the firms is situated outside India).

 The limits are more than Rs 4,000 crore or 12,000 crore and US $ 2 billion and 6 billion
in case acquirer is a group in India or outside India respectively.

For mergers:
  Assets of the merged/amalgamated entity more than Rs 1,000 crore or turnover more than
Rs 3,000 crore (these limits are US $ 500 millions and 1,500 millions in case one of the
firms is situated outside India).

 These limits are more than Rs 4,000 crore or Rs 12,000 crore and US $ 2 billions and 6
billions in case merged/amalgamated entity belongs to a group in India or outside India
respectively.

Further, such combination, which causes or is likely to cause "appreciable adverse impact" on
competition, would be treated as void.

A system is provided under the Act wherein at the option of the person or enterprise proposing
to enter into a combination may give notice to the Competition Commission of India of such
intention providing details of the combination. The Commission after due deliberation, would
give its opinion on the proposed combination to approach the Commission for this purpose.
However, public financial institutions, foreign institutional investors, banks or venture capital
funds which are contemplating share subscription financing or acquisition pursuant to any
specific stipulation in a loan agreement or investor agreement are not required to approach the
CCI for this purpose.

4. COMPETITION COMMISSION OF INDIA

CCI, entrusted with eliminating prohibited practices, is a body corporate and independent entity
possessing a common seal with the power to enter into contracts and to sue in its name. It is to
consist of a chairperson, who is to be assisted by a minimum of two, and a maximum of ten,
other members.

Acts taking place outside India

CCI has the power to enquire into unfair agreements or abuse of dominant position or
combinations taking place outside India but having adverse effect on competition in India,
provided that any of the below mentioned circumstances exists:

 An agreement has been executed outside India

 Any contracting party resides outside India

 Any enterprise abusing dominant position is outside India

 A combination has been established outside India

 A party to a combination is located abroad.

 Any other matter or practice or action arising out of such agreement or dominant position
or combination is outside India.
To deal with cross border issues, CCI is empowered to enter into any Memorandum of
Understanding or arrangement with any foreign agency of any foreign country with the prior
approval of Central Government.

Benches

For the execution of duties, the Act contemplates the exercise of the jurisdiction, powers and
authority of CCI by number of Benches. If necessary, a Bench would be constituted by the
chairperson of at least two members; it being mandated that at least one member of each Bench
would be a "Judicial Member". The Bench over which the chairperson presides is to be known as
the Principal Bench and the other Benches known as Additional Benches. However, the Act
further empowers the chairperson to further constitute one or more Benches known as Mergers
Benches exclusively to deal with combination and the regulation of combinations.

Extension of the executive powers

The Act contemplates the extension of the executive powers of CCI by the appointment of a
Director General and as many other persons for the purpose of assisting it in conducting
enquiries into contraventions of the provisions of the Act as well as conducting cases before the
Commission.

CCI is empowered to conduct enquiries into:

1. "Certain agreements and dominant position of enterprise"

2. "Combinations"

CCI, either on its own motion, on receipt of a complaint or on a reference made to it by the
Centre or State Government may enquire into any alleged contravention regarding the nature of
the agreement, which is suspected to be inherently anti-competitive, or the abuse of dominant
position. Any person, consumer, consumer association or trade association can make a
complaint.

An enquiry into a combination, existing or proposed, may be initiated upon the knowledge or
information in the possession of CCI or upon notice of the person or entity proposing to enter
into a combination or upon a reference made by a statutory authority. Limitation of time for
initiation of enquiry is one year from the date on which the combination has taken effect when
CCI conducts such enquiry.

Jurisdiction

An enquiry or complaint could be initiated or filed before the Bench of CCI if within the local
limits of its jurisdiction the respondent\s actually or voluntarily resides, carries on business or
works for personal gain, or where the cause of action wholly or in part arises.

CCI has been vested with the powers of a civil court including those provided under
sections 240 and 240A of the Companies Act, 1956 on an "Inspector of Investigation" while
trying a suit, including the power to summon and examine any person on oath, requiring the
discovery and production of documents and receiving evidence on affidavits. CCI is also vested
with certain powers of affirmative action to act in an expedited manner. Civil courts or any
other equivalent authority will not have any jurisdiction to entertain any suit or proceeding or
provide injunction with regard to any matter which would ordinarily fall within the ambit of CCI.

PROCEDURE OF INVESTIGATION AND ORDER THEREOF

If a prima facie case exists with respect to anti-competitive agreements and abuse of
dominant position, CCI is empowered to direct the Director General to conduct an investigation
in the matter.

In determining the nature of agreements, the following factors are to be taken into account:

 Barriers to new entrants in the market

 Driving existing competitors out of the market

 Foreclosure of competition by hindering entry into the market

 Accrual of benefits of consumers

 Improvements in production or distribution of goods or provision of services

 Promotion of technical, scientific and economic development.

In determining the nature of the dominant position enjoyed by an enterprise, following factors
are to taken into account:

 Market share of the enterprise and market structure and size

 Size and resources of the enterprise

 Economic power of the enterprise including commercial advantages over the competitors

 Size and importance of the competitors

 Dependence of consumers on the enterprise

 The extent of vertical integration and consumer dependence

 Whether the monopoly was gained by reason of statute or otherwise

 Entry barriers including barriers such as regulatory barriers, financial risk, high capital
cost of entry, market entry barriers, technical entry barriers, economies of scale
  "Countervailing buying power" and "social obligations and costs"

 Any other factor which CCI may consider relevant for the enquiry

The Director General would submit his report with recommendations. If CCI is of the view that
there are no merits to the case, the complaint would be dismissed, with costs. However, during
the course of enquiry, CCI may grant interim relief by way of temporary injunctions
restraining a party from continuing with the ant-competitive agreements or abuse of dominant
position.

An order of CCI subsequent to an enquiry, could consist of:

 Directing the persons or entities ruled against to desist from abusing a dominant position
or discontinuing acting upon anti-competitive agreements

 Imposing penalty to the maximum extent of ten percent of the average turnover for the
last preceding three financial years upon each person or entity party to the abuse

 Award compensation

 Modify agreements

 Recommend the division of the dominant enterprise to the Centre, which has the ultimate
authority to decide the fate of a dominant enterprise

 Recovery of compensation from any enterprise for any loss or damage shown to have
suffered by the other party.

The procedure for investigation of combinations is somewhat different, as the Act

contemplates direct investigation to be conducted by CCI rather than by resorting to the via
media of the Directorate General. It may call upon any party to furnish all relevant information
with regard to their business operation to come to a conclusion as to the nature of the
combination.

While the factors to be taken into account are similar to the parameters to be applied while
examining anti-competitive agreements and abuse of dominant position the CCI shall also have
due regard to the following factors:

 Actual and potential level of competition through imports in the market

 Extent of effective competition likely to sustain in the market

 Likelihood that the competition would result in the removal of a vigorous and effective
competitor or competitors in the market.

 Possibility of a failing business

  Nature and extent of innovation

 Relative advantage, by way of the contribution to the economic development

 Whether the benefits of the combination outweigh the adverse impact of the combination
if any

In case of combination, CCI may pass following orders:

 Approval of the combination if no appreciable adverse effect on competition is found

 Disapproval of the combination in case of adverse effect

 It may propose suitable modification as accepted by the parties

 During enquiry grant interim relief by way of temporary injunctions

 Award compensation

Penalties

In case of failure to comply with the directions of CCI and Director General or false
representation of facts by parties, penalties ranging from Rs 1lac to Rs 1 crore may be imposed
as the case may be.

Execution of the order

So far the execution of the order is concerned, it is the responsibility CCI. However, in the event
of its inability to execute it, CCI may send such order for execution to the High Court or the
principal civil court, as the case may be.

POST-DECISIONAL OPTIONS

The aggrieved person may apply to CCI for review of the order within thirty days from the date
of the order, provided that the below mentioned conditions are fulfilled:

 An appeal is allowed by this Act

 No appeal has been preferred

Provision has been made for an appeal against any order or decision of CCI by any aggrieved
person. An application for this purpose has to be made to the Supreme Court within sixty days
from the date of communication of the decision or order.
COMPETITION ADVOCACY

Perhaps one of the most crucial components of the Act is competition advocacy. Intention is
to help evolve competition law through review of policy, promotion of competition advocacy,
creating awareness and imparting training about competition issues. For this purpose
Government may, in its discretion, make a reference to CCI for its opinion thereon but is not
bound by it. The power of the Centre to issue directions to CCI is inherent, and such directions
would bind it.

CONCLUSION

Non-issuance of notification till date by the Government regarding the Act, has taken the wind
out of the new competition policy. As a result, the proposed CCI has not become functional and
the matters are still looked into by the obsolete MRTP Commission.

The act is comprehensive enough and meticulously carved out to meet the requirements of the
new era of market economy, which has dawned upon the horizon of Indian economic system. It
is in synchronization with other set of policies such as liberalized trade policy, relaxed FDI
norms, FEMA, deregulation etc, that would ensure uniformity in overall competition policy. It’s
just a matter of time when the Act is made effective and CCI becomes functional, which would,
in turn, help realize our aspiration to catch up with the global economy. However, the Act is truly
reflective of changing economic milieu of our country and is well equipped to promote fair
competition and take care of impinging market practices, facilitate domestic players vis-à-vis
outsiders, safeguard the interests of consumers and thus, ensure vibrancy and stability in the
Indian market.

Cyber Laws Application of Information Technology Act.

Cyberspace
Cyberspace can be defined as an intricate environment that involves interactions between people,
software, and services. It is maintained by the worldwide distribution of information and
communication technology devices and networks.
With the benefits carried by the technological advancements, the cyberspace today has become a
common pool used by citizens, businesses, critical information infrastructure, military and
governments in a fashion that makes it hard to induce clear boundaries among these different
groups. The cyberspace is anticipated to become even more complex in the upcoming years, with
the increase in networks and devices connected to it.

Cyber security
Cybersecurity denotes the technologies and procedures intended to safeguard computers, networks,
and data from unlawful admittance, weaknesses, and attacks transported through the Internet by
cyber delinquents.
ISO 27001 (ISO27001) is the international Cybersecurity Standard that delivers a model for
creating, applying, functioning, monitoring, reviewing, preserving, and improving an Information
Security Management System.
The Ministry of Communication and Information Technology under the government of India
provides a strategy outline called the National Cybersecurity Policy. The purpose of this
government body is to protect the public and private infrastructure from cyber-attacks.

Cybersecurity Policy
The cybersecurity policy is a developing mission that caters to the entire field of Information and
Communication Technology (ICT) users and providers. It includes −

 Home users
 Small, medium, and large Enterprises
 Government and non-government entities
It serves as an authority framework that defines and guides the activities associated with the security
of cyberspace. It allows all sectors and organizations in designing suitable cybersecurity policies to
meet their requirements. The policy provides an outline to effectively protect information,
information systems and networks.
It gives an understanding into the Government’s approach and strategy for security of cyber space in
the country. It also sketches some pointers to allow collaborative working across the public and
private sectors to safeguard information and information systems. Therefore, the aim of this policy
is to create a cybersecurity framework, which leads to detailed actions and programs to increase the
security carriage of cyberspace.

Cyber Crime
The Information Technology Act 2000 or any legislation in the Country does not describe or
mention the term Cyber Crime. It can be globally considered as the gloomier face of technology.
The only difference between a traditional crime and a cyber-crime is that the cyber-crime involves
in a crime related to computers. Let us see the following example to understand it better −
Traditional Theft − A thief breaks into Ram’s house and steals an object kept in the house.
Hacking − A Cyber Criminal/Hacker sitting in his own house, through his computer, hacks the
computer of Ram and steals the data saved in Ram’s computer without physically touching the
computer or entering in Ram’s house.

The I.T. Act, 2000 defines the terms −

 access in computer network in section 2(a)
 computer in section 2(i)
  computer network in section (2j)
 data in section 2(0)
 information in section 2(v).
To understand the concept of Cyber Crime, you should know these laws. The object of offence or
target in a cyber-crime are either the computer or the data stored in the computer.

Nature of Threat
Among the most serious challenges of the 21st century are the prevailing and possible threats in the
sphere of cybersecurity. Threats originate from all kinds of sources, and mark themselves in
disruptive activities that target individuals, businesses, national infrastructures, and governments
alike. The effects of these threats transmit significant risk for the following −

 public safety
 security of nations
 stability of the globally linked international community
Malicious use of information technology can easily be concealed. It is difficult to determine the
origin or the identity of the criminal. Even the motivation for the disruption is not an easy task to
find out. Criminals of these activities can only be worked out from the target, the effect, or other
circumstantial evidence. Threat actors can operate with considerable freedom from virtually
anywhere. The motives for disruption can be anything such as −

 simply demonstrating technical prowess

 theft of money or information
 extension of state conflict, etc.
Criminals, terrorists, and sometimes the State themselves act as the source of these threats.
Criminals and hackers use different kinds of malicious tools and approaches. With the criminal
activities taking new shapes every day, the possibility for harmful actions propagates.
Enabling People
The lack of information security awareness among users, who could be a simple school going kid, a
system administrator, a developer, or even a CEO of a company, leads to a variety of cyber
vulnerabilities. The awareness policy classifies the following actions and initiatives for the purpose
of user awareness, education, and training −
 A complete awareness program to be promoted on a national level.
 A comprehensive training program that can cater to the needs of the national information
security (Programs on IT security in schools, colleges, and universities).
 Enhance the effectiveness of the prevailing information security training programs. Plan
domain-specific training programs (e.g., Law Enforcement, Judiciary, E-Governance, etc.)
 Endorse private-sector support for professional information security certifications.

Information Technology Act

The Government of India enacted The Information Technology Act with some major objectives
which are as follows −
 To deliver lawful recognition for transactions through electronic data interchange (EDI) and
other means of electronic communication, commonly referred to as electronic commerce or
E-Commerce. The aim was to use replacements of paper-based methods of communication
and storage of information.
 To facilitate electronic filing of documents with the Government agencies and further to
amend the Indian Penal Code, the Indian Evidence Act, 1872, the Bankers' Books Evidence
Act, 1891 and the Reserve Bank of India Act, 1934 and for matters connected therewith or
incidental thereto.
The Information Technology Act, 2000, was thus passed as the Act No.21 of 2000. The I. T. Act got
the President’s assent on June 9, 2000 and it was made effective from October 17, 2000. By
adopting this Cyber Legislation, India became the 12th nation in the world to adopt a Cyber Law
regime.

Mission and Vision Cyber security Program

Mission
The following mission caters to cybersecurity −
 To safeguard information and information infrastructure in cyberspace.
 To build capabilities to prevent and respond to cyber threats.
  To reduce vulnerabilities and minimize damage from cyber incidents through a combination
of institutional structures, people, processes, technology, and cooperation.

Vision
To build a secure and resilient cyberspace for citizens, businesses, and Government.

Salient Features of I.T Act

The salient features of the I.T Act are as follows −
 Digital signature has been replaced with electronic signature to make it a more technology
neutral act.
 It elaborates on offenses, penalties, and breaches.
 It outlines the Justice Dispensation Systems for cyber-crimes.
 It defines in a new section that cyber café is any facility from where the access to the internet
is offered by any person in the ordinary course of business to the members of the public.
 It provides for the constitution of the Cyber Regulations Advisory Committee.
 It is based on The Indian Penal Code, 1860, The Indian Evidence Act, 1872, The Bankers'
Books Evidence Act, 1891, The Reserve Bank of India Act, 1934, etc.
 It adds a provision to Section 81, which states that the provisions of the Act shall have
overriding effect. The provision states that nothing contained in the Act shall restrict any
person from exercising any right conferred under the Copyright Act, 1957.

Scheme of I.T Act

The following points define the scheme of the I.T. Act −
 The I.T. Act contains 13 chapters and 90 sections.
 The last four sections namely sections 91 to 94 in the I.T. Act 2000 deals with the
amendments to the Indian Penal Code 1860, The Indian Evidence Act 1872, The Bankers’
Books Evidence Act 1891 and the Reserve Bank of India Act 1934 were deleted.
 It commences with Preliminary aspect in Chapter 1, which deals with the short, title, extent,
commencement and application of the Act in Section 1. Section 2 provides Definition.
 Chapter 2 deals with the authentication of electronic records, digital signatures, electronic
signatures, etc.
 Chapter 11 deals with offences and penalties. A series of offences have been provided along
with punishment in this part of The Act.
 Thereafter the provisions about due diligence, role of intermediaries and some miscellaneous
provisions are been stated.
  The Act is embedded with two schedules. The First Schedule deals with Documents or
Transactions to which the Act shall not apply. The Second Schedule deals with electronic
signature or electronic authentication technique and procedure. The Third and Fourth
Schedule are omitted.

Application of the I.T Act

As per the sub clause (4) of Section 1, nothing in this Act shall apply to documents or transactions
specified in First Schedule. Following are the documents or transactions to which the Act shall not
apply −
 Negotiable Instrument (Other than a cheque) as defined in section 13 of the Negotiable
Instruments Act, 1881;
 A power-of-attorney as defined in section 1A of the Powers-of-Attorney Act, 1882;
 A trust as defined in section 3 of the Indian Trusts Act, 1882;
 A will as defined in clause (h) of section 2 of the Indian Succession Act, 1925 including any
other testamentary disposition;
 Any contract for the sale or conveyance of immovable property or any interest in such
property;
 Any such class of documents or transactions as may be notified by the Central Government.

Amendments Brought in the I.T Act

The I.T. Act has brought amendment in four statutes vide section 91-94. These changes have been
provided in schedule 1-4.
 The first schedule contains the amendments in the Penal Code. It has widened the scope of
the term "document" to bring within its ambit electronic documents.
 The second schedule deals with amendments to the India Evidence Act. It pertains to the
inclusion of electronic document in the definition of evidence.
 The third schedule amends the Banker's Books Evidence Act. This amendment brings about
change in the definition of "Banker's-book". It includes printouts of data stored in a floppy,
disc, tape or any other form of electromagnetic data storage device. Similar change has
been brought about in the expression "Certified-copy" to include such printouts within its
purview.
 The fourth schedule amends the Reserve Bank of India Act. It pertains to the regulation of
fund transfer through electronic means between the banks or between the banks and other
financial institution.

Intermediary Liability
Intermediary, dealing with any specific electronic records, is a person who on behalf of another
person accepts, stores or transmits that record or provides any service with respect to that record.
According to the above mentioned definition, it includes the following −

 Telecom service providers

 Network service providers
 Internet service providers
 Web-hosting service providers
 Search engines
 Online payment sites
 Online auction sites
 Online market places and cyber cafes

Highlights of the Amended Act

The newly amended act came with following highlights −

 It stresses on privacy issues and highlights information security.

 It elaborates Digital Signature.
 It clarifies rational security practices for corporate.
 It focuses on the role of Intermediaries.
 New faces of Cyber Crime were added.

SUMMARY OF CYBER LAW

 Cyber Laws are the sole savior to combat cyber-crime. It is only through stringent laws that
unbreakable security could be provided to the nation’s information. The I.T. Act of India
came up as a special act to tackle the problem of Cyber Crime. The Act was sharpened by
the Amendment Act of 2008.
 Cyber Crime is committed every now and then, but is still hardly reported. The cases of
cyber-crime that reaches to the Court of Law are therefore very few. There are practical
difficulties in collecting, storing and appreciating Digital Evidence. Thus the Act has miles
to go before it can be truly effective.