Professional Documents
Culture Documents
GENERAL OVERVIEW TO
COMPETITION
LAW
11/07/23 12/07/23 13/07/23 17/07/23 3/07/23
ATTENDANCE
4/07/23 5/07/23
Introduction
Nodal Body —- CCI —— after the 2017 amendment the appeal goes to NCLAT
—— prior to 2017 the appeal would go to COMPAT —— next court of appeal in
SC (S. 53T)
Definitions
quality
R&D
pricing fairness
cheaper goods
variety
Markets
A market is a place where the buyers and sellers can meet to facilitate the
exchange or transaction of goods and services.
Features of Markets—- buying and selling transactions for goods , goods &
services, Buyers and sellers, Price differentiation, geographical Area/digital,
demand and supply
Types of Markets:
homogenous products
no transportation costs
2. Imperfect Competition
a. Monopoly
b. Oligopoly
c. Monopolistic
many sellers
example—-clothing lines
competition law policy envisages that all laws and policies enacted pertaining to
other sectors have to be competition law compliant.
History
MRTP Act, 1969 —- monopolies and restrictive trade practices act ——aims of
the act—— first to ensure that the economic system does not result in the
concentration of economic power—-second to provide for control of monopolies
—- third to prohibit monopolistic, restrictive and unfair trade practices
US - Sherman Act, 1890; Clayton Act, 1914; Federal Trade Commission Act,
1914
5. Extraterritorial Jurisdiction/Application
absent in MRTP
present in s. 32 of CA
the CCI has the jurisdiction to take cognizance of matters outside India if they
affect the Indian Market
6. MRTP Act the agreement need to be registered whereas the agreement need
not be registered under CA —-the comprehensive definition of agreement under
CA is to ensure that cartelization can be prevented and mere a tacit
understanding that is anti-competitive can be brought under the purview of the
Act.
Preamble
Art. 38,39,19(1)(g)
Definitions
Section 2(f) consumer —— under the CA act the consumer includes person
buying goods/services for personal and commercial purpose —— the
consumer protection act, 2019 under section 2(7) explicitly excludes person
who obtains such goods for resale or for any commercial purpose.
[After 2023 Amendment —— the term economic activity has been inserted under
section 2(h) definition of enterprises]
Read only ——section 2(r) —-“relevant market” means the market which may
be determined by the Commission with reference to the relevant product
market or the relevant geographic market or with reference to both the
markets
Relevant market ——- to file a case under the act it is essential to ascertain the
relevant market
Section 2 (t) r/w s. 19(7) "relevant product market" means a market comprising
of all those products or services—
(i) which are regarded as inter-changeable or substitutable by the consumer, by
reason of
characteristics of the products or services, their prices and intended use; or
(ii) the production or supply of, which are regarded as interchangeable or
[After amendment the relevant product market from the perspective of supplier is
also considered]
not necessary to demarcate the relevant market for violation u/s 3 —- CCI v.
Coordination Committee of Artists and Technicians of W.B. Film & Television,
price distortion
After 2023 Amendment —— Hub and Spoke Cartel—- although not part of
cartel such persons that facilitate will also fall under the ambit of CA post the
amendment —— https://www.mondaq.com/india/cartels-
monopolies/963074/uber-and-ola-win-antitrust-case-in-india---no-hub-and-
spoke-cartel-with-drivers--nclat-dismisses-appeal-on-grounds-of-lack-of-locus-
standi
AAEC
section 3(1) r/w Section 19(3) ——— to establish AAEC —-guiding factors
to determine if competition is affected——- CCI while determining whether
an agreement has an appreciable adverse effect on competition shall have
due regard to——
(a) creation of barriers to new entrants in the market; [entry barriers]
(b) driving existing competitors out of the market;
(c) foreclosure of competition
(d) [benefits or harm] to consumers;
(e) improvements in production or distribution of goods or provision of
services;
if positives exceed the negatives then CCI will allow otherwise not
[11 cement companies —- June 2012 a 6000 crore penalty ——- the
builders association alleged that there was price increment after
every meeting of the CMA——section 3 —-anti-competitive
agreement and section 4 - abuse of dominance ——- evidence —-
email communications , visible pattern of price increment —-held that
the direct evidence not required —circumstantial evidence obtained
during the investigation was sufficient evidence of cartelization
diff b/w section 3(3) and 3(4) ———-under section 3(3) “shall be
presumed”—-per se rule will be applicable whereas the burden of proof is
on the accused —-as cartels are gravest form of violation under the CA —-
under 3(4) there is no direct rule of presumption and the burden of proof is
on the complainant.
(a) tie-in arrangement—— tying in the product that is in less demand with a
product that is in higher demand —— Bundling and Tying —-has to be proven
that the competition has to be affected —not every tie-in arrangement is anti-
competitive
Para No. 69 —
Generally, the following
conditions are necessary and essential in respect of anti-competitive
tying:
[In a first major Order passed under section 3(4) of the Competition
Act,2002, CCI had imposed penalty of more than Rs.2500 Crores
upon 14 major car manufacturers for violating a the Act. It was held
that all the major auto manufactures were not allowing its spare parts
and diagnostic tools to be sold in the open car market and forcing the
consumers to buy it from their authorized dealers/distribution
channels —- affecting the freedom to trade of independent traders
——- exclusive supply agreement ; exclusive distribution
agreement ; refusal to deal were made out in this case ——
section 3(4) (b), (c) (d)—- fixed channel of sourcing
(d) refusal to deal —- in most cases where there is exclusive dealing and
exclusive distribute it is presumed that refusal to deal exists
(e) resale price maintenance ——- fixing the price of resale —- ex. by
restricting discounts
Q.
SM Dugar
Varsha Vahini
Abir Roy
[Section 19 ——- Suo Moto when the CCI takes cognizance itself
when the govt. refers then [Ref. Case No.]
when the informant files [Case No.]
[Project Topic——-