COMPETITION BILL

• Presented By:-
 INTRODUCTION

THE COMPETITION (AMENDMENT) BILL 2009

In the pursuit of globalization , India has responded by

openings its economy removing controls and resorting to
liberalization. The main reason of doing this is that Indian
market should face competition within country and
outside country .

On September 10 , 2007 , the Indian Parliament passed

the Competition (Amendment) Bill , which amends the
Competition Act of 2002 , and provides the Competition
Commission of India with the statutory powers
 The Competition Bill enacted by Parliament in the
sixtieth year of the Republic of India as follows:-

1. This Act may be called the Competition (Amendment )

Act 2009.

2. It shall be deemed to have come into force on the 14th

October 2009.

3. The Bill aims at preventing and regulating anti –

competitive practices in accordance with the Act and
would also play an advisory and advocacy role.

4. The Bill was introduced by the Minister of Affairs ,

Prem Chand Gupta on 29 August 2007.
 The MRTP (Monopolies and Restrictive Trade Practice)
Act 1969 had become obsolete and the Competition Act
2002 replaced MRTP Act ,1969 with the following
objectives:-

• To prevent practices having adverse effect on competition.

• To promote and sustain competition in market.
• To protect interest of the consumers.
• To ensure freedom of trade carried on by other participants
in the Indian Market.
 CHARACTERISTICS OF THE BILL

 Bill replaced the MRTP Act

 Bill not oppose to monopoly ,but only abuse of monopoly
 10 member CCI (Competition Commission of India)
replaces MRTP Commission
 Bill prohibits sharing of territories ,restricting production
and supply ,predatory pricing .
 Pre –merger or acquisition notification and scrutiny not
mandatory.
 Demerger if the post –merger finds abuse of dominance.
 Appeal against CCI order only in SC(Supreme Court)
 OBJECTIVES OF THE BILL

 To prevent practices having adverse effect on competition.

 To promote and sustain competition in markets

 To protect the interests of consumers.

 To ensure freedom of trade carried on by other Participants

in market.

 To maintain and encourage competition in order to foster

consumer welfare.
 CLASSIFICATION OF THE
COMPETITION BILL

1. Prohibition of anti –competitive agreements.

2. Prevention of abuse of dominance.

3. Regulation of combinations(mergers and acquisitions).

4. Establishment ,staffing and powers of the proposed ten

member CCI(Competition Commission Of India).
Prohibition of anti – competitive Agreement

 Sec. 3 provides for prohibition of entering into anti-

competitive agreements.

 It shall not be lawful for any enterprise or association of

enterprises or person or association of persons to enter into
an agreement in respect of production , storage and
distribution of goods which causes an appreciable adverse
effect on competition with India.
 Abuse Of Dominance

 Sec. 4 prohibits abuse of dominant by any enterprise

 Such abuse of dominant position ,inter alia, includes

imposition ,either directly or indirectly, of unfair purchase
or selling prices.

 Sec.5 deals with combination of enterprises and persons.

 Acquisition of of one or more enterprises by one or more

persons or acquiring control or merger or amalgamation of
enterprise under certain circumstances specified.
 Regulation Of Combinations

 No person or enterprise shall enter into a combination which

causes appreciable adverse effect on competition within the
relevant market in India and such a combination shall be
void [Sec.6(1)]

 Exemption . Any person or enterprise , who or which

proposes to enter into a combination ,may ,at his or its
option ,give notice to the Competition Commission of India.
 Competition Commission of India

Establishment of commission

With effect from such date as the Central Govt. may appoint,
there shall be established, for the purposes of this act, a
commission to be called the “Competition Commission of
India” [Sec.7(1)]

Corporate body. The commission shall be body corporate by

the name Competition Commission of India having
perpetual succession and a common seal.[Sec.7(2)]
Duties, Powers and Functions of Commission

• Eliminate practices having adverse effect on

competition
• Promote and sustain competition
• Protect the interest of customers
• Ensure freedom of trade carried by other participants,
in markets in India
• Power to grant interim relief (Sec.33)
• Power to award compensation (Sec.34)
• Power of commission to regulate its own procedure
 IMPLICATIONS OF THE COMPETITION
BILL
• The structural adjustment programme under the economic
reforms since July 1991 and India’s membership to the WTO
have exposed economic agents to domestic and global
competition, and provided consumers with choices of goods and
services.
• The professional background for the Bill is the High Level
Committee on Competition Policy and Law that gave its
recommendations to the Government in May, 2000.
• An important aspect of the Bill of public and professional
interest relates to its economic implications. An
understanding of these implications will help form the
basis for supporting/confronting the Bill on strict
economic grounds.
 COMPETITION ACT - A CRITICAL
ANALYSIS
• Fair competition ensures improved productivity, greater
efficiency, and productive innovation, which results in a
consumer oriented, fair priced market with improved quality
products on offer.
• After the gates of Indian economy were opened in the
liberalization era, the time has ripen after 17 years wherein it
became important to regulate the dominant positions.
• The markets were calling for a shift from the government
regulation of curbing monopolies by MRTP act to promoting
competition by way of a new anti trust law.
• Prior to the enactment of the competition act, in pursuance of
the industrial policy statement of 1991, the legislature has
made changes in the MRTP act but in spite of those
Thank You