Professional Documents
Culture Documents
Competition Act
Competition Act
GROUP 8
Feroze Ahmed (415) Vibhav Upadhyay (453) Tarun Gupta (460) Harsh Mehta (431) Jigyasa Nabh (434) Aayush Mahajan (430) Visha Chauhan (455)
CONTENTS
1. Developments leading to MRTP 2. The MRTP Act, 1969 3. The Competition Act, 2002 I) II) III) IV)
Benefits of Competition
Companies Efficiency, cost-saving operations, better utilization of resources The Consumer Wider choice of goods at competitive prices The Government Generates higher revenue
Perfect Competition
It is an ideal situation which exists only on paper. It implies: A large number of Sellers A large number of Buyers Free entry Free exit Manufacturers are price-takers and not price-makers No single manufacturer can influence the market
Exceptions to MRTP
Unless the Central Government otherwise directs, this act shall not apply to:
Any undertaking owned or controlled by the Government Any undertaking owned or controlled by a corporation established by or under any Central, Provincial or State Act Any trade union or other association of workmen or employees formed for their own reasonable protection
Contd..
Any undertaking engaged in an industry, the management of which has been taken over by any person or body of persons under powers by the Central Government Any undertaking owned by a co-operative society formed and registered under any Central, Provincial or state Act Any financial institution
Post 1991
Many economic reforms were introduced in 1991 MRTP Act lost its relevance in the new liberalized and global competitive scenario Shift of focus from curbing monopolies to promoting competition The government thus appointed the Raghavan Committee to examine the whole issue.
II. Prohibits abuse of Dominant Position (Section 4) III. Provides for Regulation of Combinations (Section 5,6) IV. Enjoins Competition Advocacy (Section 49)
Contd..
CAT shall adjudicate claims on compensation and passing of orders for the recovery of compensation for loss or damages suffered due to any contravention of the provisions of the Act Imposition of penalty by the Commission for contravention of its orders which may extend to Rs 25 crores or imprisonment which may extend to 3 years or with both Filing appeal against orders of the CAT shall be to the Supreme Court MRTP Commission will continue up to 2 years after constitution of CCI for trying pending cases
Investigations/Proceedings
With effect from 1 September 2009, all pending investigations and proceedings by the Director General relating to Monopolistic/Restrictive trade practices will be transferred to the CCI Unfair trade practices will be transferred to the National Commission under the Consumer Protection Act 1986 Cases giving false or misleading facts disparaging the goods, services or trade of another person will be transferred to the CCI.