Professional Documents
Culture Documents
Competition Policy of India
Competition Policy of India
C O M P E T I T I O N.
is a dynamic concept is an amalgam of factors that stimulate economic rivalry is a tool to mount market pressure to penalise laggards and to reward the enterprising
tition
POLICY - GOALS COMPETITION POLICY - GOALS
FOUR COMPARTMENTS
anti-competition agreements abuse of dominance mergers, amalgamations, acquisitions and take-overs fostering competition
exclusive distribution
refusal to deal resale price maintenance adjudication by rule of reason
ABUSE OF DOMINANCE
dominance not linked to any arithmetic figure of market share dominance means a position of strength enabling an enterprise to operate independently of competitive pressure and to appreciably affect the relevant market , competition and consumers. abuse of dominance arises if an enterprise imposes unfair /discriminatory purchase or sale prices (including predatory prices) limits production, markets or technical development denies market access concludes contracts subject to obligations having no connection with the subject of the contracts. uses dominance to move into or protect other markets
COMBINATIONS
MERGERS/AMALGAMATIONS
pejorative effects reduction in number of players acquisition of enormous economic strength discouragement of new entrants dictation of prices dominance
COMPETITION ADVOCACY
The competition commission of India is enabled to participate in the formulation of policies and reviewing of policies relating to competition at the instance of the government is required to create competition culture is required to act as competition advocate
EXEMPTIONS
government by notification may exempt from the competition law a any class of enterprises in the interest of national security/public interest.
b. any practice/agreement arising out of international treaty/agreement c. any enterprise performing a sovereign function on behalf of government
different provisions from different dates if, need be.
CHAIRPERSON
MEMBERS (Max. Ten) SELECTION BY A COLLEGIUM THIS IS TO MINIMISE POLITICISATION OF APPOINTMENTS
chairperson and members from fields judiciary, economics, law, international trade, business, commerce, industry, finance, accoutancy, management, public affairs, and administration
every bench will have a judicial member
none of the above comments and beliefs is true or has any basis India has exercised its sovereign right to have a new modern competition law
NEW LAW
1. BASED ON POST-1991 LPG 2. PREMISED ON BEHAVIOUR/ CONDUCT 3. RESULT ORIENTED 4. CAN BITE (PUNITIVE ) 5. OFFENCES DEFINED EXPLICITLY 6. FROWNS ON ABUSE OF DOMINANCE (NO PERCENTAGE OF MARKET SHARE)
NEW LAW
8. UNFAIR TRADE PRACTICES
covers unfair trade practices (individual consumer interest) 9. political appointments of chairperson/members 10. no competition advocacy role 11. reactive