Competiton Law Assgnmemt

Articde on Tie in Arrangements anod Compethon.

Name Bharti Ramnani
class LL.8. (3 Yrs) Sem- N,
RoI no 27

Tie in Arrangements anod Compeihon

Wit idespread economic reforms n

wih year 199/
h e year

and conse uent adoptron o ee maxket

pinuples in Hhe econD my_ he Old Hhen prevarln2
competit on lao -e. the Monopolhsthe
and
a nd

Restictive Traole Practic Act MIRTP) was

CompetHon_Act, 2002
Teplaced t h he ne
The Tepeal o he MRTP Act waL on hne
gDunds h a t t h e a c t oas not Suted a t
all to oleau with ssues com petiho) +hat may
bus)neLs
be expected to s e _i n h e neLo Libexa
envirdnMent

Tn he MRTPAct Te - u sales weNE dealt

under Res tictHve Traale Practics

consiolexed as aprachce which had ho eeet
p e ventinq dutrha Oy resmctin ampe-+itoo
OYas a _practice ohich tends o obsuct +hee
he
louo
oo -
lapital oY resouN ceS mo the sreamm
Dfpmaluction

Onder the
Compethon ACt Tie in aríangemerts
IS deat Loithundex
+ the head Vexticad Anti'-
competihve Agreement A e in arranement
wndex tiis act_is
isnot_illegal_per se
 aduexse
eduerse
ee
e t
appreciable
appreciable
in
tie in
an
an
no have
hanod

oes One disiMnah

aisaimin
pce
n heLompethon.
in
ses ult m
market_
a r k e t

may i n the
Hhe pndu
artange m e n t s in
e ntry
entry ae
n nd
d ty
b a r n e r to new he
the
H
H e
e d
d 0_arangement
s
a r r a n g e m e n t

sah'on e H
ee--0 prouolu'ng
mono poli other
ofher
hand
h and
by_
and
on the
h e Lonsumexs aa b u n a !ee
bunoll
ond he in
in
benet sexuices louwe
may
them w i t h q0ods
9oods or pmu
l o u w e z _ p n i e

and a t S
suuc
ch
reaured
o h i c ha r e O v e x a u p e t s p e L t t v e ii s that
hat

an
aolvexkel e
_Qcvexke e az
Howeve kely
Oould oh
to he
e
benepiua
benefiual
han being
axrangemenu

beng
economy
the
the
compan
Compehhon

secthon 3 (4) o the C o m p e i i o n

AAc olelned
in inic
nleu
luoll
eess an
any
a r r a n g e m e d

Act ie in Pwx chas e r 90oas

90ads
reguinna 2 Puxchas e
Qongement o_ pwrchase
Auch purchase
aLondition o
as poduct o eUice requirrs
anDthe_qoools The
s called he tying pool uct
by the buyee _poadluct hat is_orcec
o

OY cerviee anod he
Hed product or
he
h e buyex sCaued the
would
Service The basic objechion h a t
ayise rom he pojnt vieo buyee IS
hat he is requir ed by compulsion +0 buy b
a_prodet or sexice hat he oloes not neea
need

and o koT ced to incw unnecess axy Cost

Cost

Prom he poind t vieu 0 the laus_pmteet pntectr

Lompethiho0 in the mayket his uoould be

Dbjer table on the qounds that 4 redu es
Competih on tn heSupply o tied prnduC
pnducts
 in Case here the Hed being sol4
prooduet is
But in
at
or a t he same Pne
a a ouoerpmce
in the market or
which it_js available
se
he Hed_pmoluct is Teguifed by he_purcha
he
Cann ot be a i d
te- in arrang mens
hen such
anti- competihive is o reason hat
to
to be n the
n _oryangem ents
CaLes are olecided
e
basis rule reas on a f t e taking into

onsj olerah on the bene ano dei ments f

market.
Hhe arrangcment on the

Nohexn PacifieRajlway: o. V. Uniteo stater

In dbseued hat hey He -jn
the Lourt
arrangements)deny compeh tors free acces to

h e maykets D he +ied_pmolucts not

because
he pauty_Jmpos ng the tying
has_a Leuex pmdud_ o r
a lowe
reirements
pnce but because e hu_po w e_ areverage
j n an0he market he
the Same Hme
orced o Porqo thei free_choice
buyexs a
betoeen lompe hng_p oolucts.

Cons umer Onlineounda tr on V.

In h e case
Ors + as caid by thee
Jata sky Lto
directors Genexal h a t DTH sexvite paDUilers

or Lin the Lonsu mexs to get ito a

tie in aranqement with +hem They reguure
h e purch aser
the he DTH SCMUTee to a o

poDcw ed by hen.
buytake on rent the STB
As thehour DTH sexurce p/oviolexs Contaolled
more thon 8o% e the marke this s e
cleax Case tie jo_arrangements Cohich
 **
PageNa:
Date

hao a siqnifiant adluexse e e c t on eompethto

compehto
On Fusthee Stuoly a ound hat n
ir ect +ie n arsagements whieh restmct or
koTce he LonLu mei tD entex jnt his is
hexe in the agreement beween DTH papviode
and Cs tomex Howevex oue to Lack
auwaeness anod avai la bil+y the Coneumers
end om Hhe Seauce ponoles
up buying
The Sale e set compnsing S78, Smakt
CaKd and Dish Antenna is not vaslab le
n Open market inolepenolent each Othex
Thu ultimately Ter ults in he in
arrangement
lo he DTHpovialers