Overview
Freedom of Trade
Competition
Commission
of India
Protect Interest of
Consumers
Prevent &
Eliminate AntiCompetitive
Practices
enterprises/persons[Section 3]
o Abuse of dominance by enterprises [Section 4]
Approval for major mergers and acquisitions (ex-ante) [Section 5
& 6]
Advisory functions [Sections 49(1), 21]
Advocacy functions[Section 49 (3)]
Legislative functions [Section 64]
Anti-competitive Agreements
Agreement: Defined under Section 2(b) of the Competition Act,
2002, which includes any :
Arrangement
Understanding or
Action in concert
Whether or not
in writing;
intended to be legally enforceable
Agreements having Appreciable Adverse Effect on Competition
(AAEC) within India prohibited [Section 3 (1)]
Anti-competitive Agreements
Agreements are of two types: Horizontal and Vertical
Agreements
Horizontal Agreements - Firms in same business (competitors)
agreeing not to compete
Includes cartel which are prohibited:
Bid rigging
Output restrictions
Price fixing
Market allocation
Vertical agreements involve firms enjoying a supplier customer
relationship
Exclusive supply/purchase agreements
Tie-in arrangements
Resale price maintenance
dominant;
o market share; size and resources/ importance of the enterprise/ competitors; dependence
Regulation of Combinations
Sections 5 & 6 deals with Regulation of Combinations.
Objective: to examine the potential effect of a combination (mergers and
Remedies
Cease and desist order
Penalty upto 10% of average turnover for last three
Conclusion
Fair and Efficient Competition is good for the economy
for many reasons. It enables More choice to consumers
Better quality of products and services
Low prices for all
Innovation and R&D
Best value for money in Procurements
Sub serve the Constitutional goal