AGREEMENTS CAUSING ADVERSE

EFFECTS
•Exchange of information and collusion amongst
firms can have a significant impact on the market
structure.
•When big firms come together to fix prices and
supply levels they command a greater degree of
power.This leads to parallel pricing.
• While doing business in India, parties are prohibited from executing anti-
competitive agreements. Generally, the agreements which cause or are likely to
cause appreciable adverse effect on competition ("AAEC") are anti-competitive
agreements. Such agreements may be horizontal or vertical.
• The Competition Commission of India ("CCI") has been given the authority to
direct any enterprise or person to modify, discontinue and not re-enter into anti-
competitive agreement and impose penalty, which can be 10% of the average of
the turnover for the last three years.