JUNE/JULY 2015

COMPETITION LAW

1. “Competition means a struggle or contention for superiority in the

commercial world”. Elucidate.
2. Explain the constitutional provisions governing the trade and commerce
under competition law.
3. “Dominance per se is not illegal, but the abuse of the position of
dominance is illegal”. Discuss.
4. Mention the powers of Federal Trade Commission (FTC), constituted
under the Federal Trade Commission Act, 1914. What are the offences
recognized and penalties prescribed under the Act?
5. What are the salient features of the Consumer Protection Act, 1986? How
does the Act owe its relevance to the spirit of competition?
6. Discuss the provisions relating to the establishment functions of the
Competition Commission of India (CCI). Mention the procedure of
conducting inquiries by the CCI.
7. How is Director General (Investigation) appointed? What are the
contraventions under the Competition Act, 2002 that he can investigate?
8. Write short note on any two of the following:
a. Price Fixing.
b. Doctrine of appreciable adverse effect on competition.
c. ‘Cease and desist’ order.
9. Solve any two of the following problems:
a. In recent years, the state governments in India have launched the
programme of issuing Ration Cards for Below Poverty Line (BPL) to a
certain category of economically poorer sections of the society. One
Barsal Ali of the State of the West Bengal was one of the Beneficiaries
to get the BPL Ration Card under the Public Distribution System
(PDS). As a consumer, he had purchased edible oil from a fair price
depot as his family quota. He and his family members have suffered
 paralysis strokes on their lower limbs. The Food Laboratory Test
revealed that edible oil was adulterated with rapeseed oil, due to
which the entire family suffered paralysis strokes. Advise Barsal Ali.
Also quote decided case law under the Consumer Protection Act,
1986.
b. A ‘Cartel’ which was formed on January 20, 2003 within the definition
of Section-2 (c) of the Competition Act, 2002, continued to be in
existence till May 21, 2009. It entered into Anticompetition Agreement
with other entities on January 20, 2003 and caused appreciable
adverse effect on competition. Can the Competition Commission of
India which was established on October 19, 2003 but came into force
w.e.f. May 15, 2009 take action against the Cartel? Decide with
reasons vis-à-vis legal issues under the Competition Act, 2002 with
amendments thereof.
c. Mr. Sonam Sharma has furnished information to the Competition
Commission of India (CCI) alleging that APPLE International
Corporation has entered into Tie-in-agreement secretly with
VODAFONE and AIRTEL for sale of iphone in India in order to get
exclusive right. iphones were compulsorily locked so that they could
work on their own network to the exclusion of other networks. Mr.
Sonam Sharma has also alleged that such an activity resulted in
limiting and controlling iphone market by creating entry barriers for
other competitors in India. Based on the investigation report of the
Director General, CCI has ordered for closure of the matter. Against
the orders of CCI, an appeal was preferred before the Supreme Court
of India for various violations under the Competition Act, 2002.
Decide with reasons and the decided case law.
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