COMPETITION ACT

Established in year 2002 Applicable to whole of the country except the state of Jammu and Kashmir.

OBJECTIVES OF ACT
1. To ensure fair competition in India. 2. Protect the interest of consumers. 3. Aims at repealing MRTP Act 1969 and the dissolution of MRTP commission. The cases pending before the MRTP commission are to be transferred to CCI. 4. Application of other laws not barred. 5. Competition advocacy.

ANTI-COMPETITION AGREEMENT (SEC 3)

The Act prohibits persons and enterprises from entering into any agreement in respect of production, supply, distribution, storage, acquisition or control of goods or provision of services, which causes or is likely to cause an adverse effect on competition within India. Such agreement shall be considered void.

AGREEMENTS THAT CAUSE ADVERSE EFFECT ON COMPETITION

Decisions taken by association of persons or enterprise which:a) directly or indirectly determine purchase or sale price. b) limits or controls production, supply, markets, technical development, investment or provision of services.

 Tie-in arrangement :- Any agreement requiring a purchaser of good, as a condition to purchase some other goods. Exclusive supply agreement :- Any agreement restricting the purchaser in course of his trade from acquiring goods other than that of seller. Exclusive distribution agreement :- Any agreement that restricts, limits the output or supply of any good.

 Refusal to deal :- Any agreement which restricts by any method the persons to which goods are sold or from whom the goods are bought.

DOMINANT POSITION
Dominant position means a position of strength, enjoyed by an enterprise, which enables it to : Operate independently of competitive forces prevailing in relevant market. Affect its competitors or consumers in its favour. No enterprise shall abuse its dominant position

ABUSE OF DOMINANT POSITION

If an enterprise : Directly or indirectly imposes unfair or discriminatory condition on price, purchase, or sale of goods or services. Restricts production of goods or services or market. Restricts technical or scientific development relating to goods or services of the consumers interest.

 Indulges in practices which deny market access to others. uses its dominant position in one relevant market to enter into or protect other relevant market.

COMBINATION
Acquisition of one or more persons or mergers or amalgamation of enterprises shall be a combination of such enterprises and persons.

REGULATION OF COMBINATION
Any person or enterprise, who or which proposes to enter into a combination may give notice to the commission, disclosing, the details of the combination within seven days of : Approval of the proposal relating to merger or amalgamation by the board of directors of the enterprises concerning such merger. Execution of any agreement for acquisition.

COMPETITION COMMISSION OF INDIA(CCI)

The central government has established the competition commission of India in 2003. CCI has its head office at new delhi. Consists of chairperson and 2-10 members appointed by the central govt. They hold office for the term of 5 years. Maximum age for :1) Chairperson is 67 yrs 2) Other members is 65 yrs.

POWERS AND FUNCTIONS OF CCI

Commission can regulate its own procedure including the places at which they shall have their sittings, duration of oral hearing and times of inquiry. It has same powers as that of civil court :a) discovery and production of documents. b) receiving evidence on affidavits. c) examinations of witnesses and documents. d) dismissing an application in default.

 The commission may call upon experts, from the different fields to assist in the conduct of any inquiry. It may conduct an inquiry, if it is of opinion that any contravention is committed which has or is likely to cause adverse effect on competition.

COMPETITION APPELLATE TRIBUNAL

Established by central government through notification. Its headquarter shall be at such place as specified in the notification. The tribunal shall consists of a chairperson and not more than two other members appointed by central government. The chairperson and members hold office for the term of 5 years.

 Maximum age of holding position :1) Chairperson 68 years 2) Members 65 years If the aggrieved party is not satisfied by the decision of the tribunal, he may file an appeal with supreme court within 60 days from the date of order of the tribunal.

MAJOR FUNCTIONS OF TRIBUNAL

To hear and dispose of appeals against any decision made or order passed by the commission. To adjudicate on claim for compensation that may arise from the finding of the commission.

THANK YOU
SUBMITTED BY :VIBHATI (190) PRATEEK ARORA (187)