CONTENT

1. COMPETITION
2. BENEFITS OF COMPETITION
3. WHAT IS COMPETITION LAW
4. EVOLUTION OF COMPETITION LAW
5. OBJECTIVES OF COMPETITION LAW
6. ANTI-COMPETITIVE AGREEMENT
7. TYPES OF AGREEMENT
8. ABUSE OF DOMINANT POSITION
9. REGULATIONS OF COMBINATION
10. COMPETITION COMMISSION OF INDIA(CCI)
11. COMPETITION APPELATE TRIBUNAL
12. COMPETITION ADVOCACY






COMPETITION
Is a situation in a market in which
firms or sellers independently
strive for the buyers patronage in
order to achieve a particular
business objective .
BENEFITS OF COMPETITION
Companies : Efficiency, cost-
saving operations, better
utilization of resources, etc.

The Consumer : Wider choice
of goods at competitive prices

The Government : Generates
revenue

Evolution of Competition Law

Before MRTP Act came into force (1970), limited
provisions existed under :
The Indian Contract Act
Directive Principles of State Policy (Non-enforceable)

The MRTP Act (Monopolies and Restrictive Trade
Practice) brought in a four-pronged thrust :
Concentration of economic power
Restrictive Trade Practices
Monopolistic Trade Practices
Unfair Trade Practices


Competition Law
Competition law is law that promotes or maintains market
competition by regulating anti-competitive conduct by
companies.

Introduced in the year 2002
It extends to the whole of India except the State of Jammu and
Kashmir.
It is a tool to implement and enforce competition policy and to
prevent and punish anti-competitive business practices by firms
and unnecessary Government interference in the market.


OBJECTIVES OF COMPETITION LAW
Promoting economic efficiency in both static and dynamic sense
Protecting consumers from the undue exercise of market power
Facilitating economic liberalization, including privatization.
Deregulation and reduction of external trade barriers
Preserving and promoting the sound development of a market economy
Ensuring fairness and equity in market place transactions
Protecting the public interest including in some cases considerations
relating to industrial competitiveness and employment
Protecting opportunities for small and medium business
Competition Law generally covers 3 areas:


Anti - Competitive Agreements, e.g., cartels,

Abuse of Dominant Position by enterprises.
e.g., predatory pricing, barriers to entry

Regulation of Combination (M&As).
ANTI-COMPETITIVE AGREEMENT (section 3)
It deals with those agreements between enterprises, which have an appreciable
adverse effect on competition

Agreement which limit the production.
Agreement which limit the supply.
Agreement to allocate market.
Agreement to fix prices.
Agreement to bid rigging.
Agreement at different stages of production chain in different markets.
Conditional purchase (Or tie-in-agreements)
Refusal to deal.
Exclusive supply agreement.
Exclusive distribution agreement.
Resale price maintenance.

Types of agreements
Competition law indentifies two types of agreement.

Horizontal agreements which are among the
enterprises who are or may compete within same
business.
Vertical agreements which are among independent
enterprise.
Abuse Of Dominant Position (section 4)
It is the misuse of an advantageous position by an enterprise to gain
extra benefits but which resultantly damage the consumer interest and
make it difficult other players to compete.
It includes,

Imposition of unjust conditions.
Imposition of unfair pricing.
Predatory pricing.
Create hindrance in entry of new operators.


Combination (section 5)
Combination of enterprises & persons or enterprises is followed
by:
(a) Acquisition by Large Enterprises
(b) Acquisition by Group
(c) Acquisition of Enterprise having similar Goods/Services
(d) Acquisition Enterprise having Similar goods/services by a
Group
(e) Merger of Enterprises
(f) Merger in Group Company

Combination of Mergers & Acquisitions
Combination that exceeds the threshold limits specified in the Act in terms
of assets or turnover, which causes or is likely to cause an appreciable
adverse impact on competition within the relevant market in India, can be
scrutinized by the Commission.
Threshold limits that would invite the scrutiny are specified below:
For acquisition:
Assets of the value of the acquirer is more than Rs.1000 crores and turn over of
is Rs 3,000 crores ,outside India, these limits are US $ 500 millions as the
assets value and turnover should be more than $1500 million.
The limits are more than Rs.4,000 crores and turn over is more than 12,000
crores and US $ 2 billion and 6 billion in case acquirer is a group in India or
outside India respectively.
For mergers:
Assets of the merged/amalgamated entity more than Rs 1,000 crore or turnover
more than Rs 3,000 crore ,these limits are US $ 500 millions and 1,500 millions
in case one of the firms is situated outside India.
These limits are more than Rs 4,000 crore or Rs 12,000 crore and US $ 2
billions and 6 billions in case merged/amalgamated entity belongs to a group in
India or outside India respectively.

Regulation of Combination (Section 6)
Section 6(1) prohibits any person or enterprise to enter into a combinations which
causes or is likely to cause an appreciable adverse effect on competition within the
relevant market in India and such a combination shall be void [Section6(1)]

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 and the fee
which may be determined by regulations, disclosing the details of the proposed
combination, within 30 days of-
Approval of the proposal relating to merger or amalgamation referred to in Section 5(c),
by the Board of Directors of the enterprises concerned with such merger or
amalgamation, as the case may be.
execution of any agreement or other document for acquisition referred to in 5(a) or
acquiring of control referred to in 5(b) of that section.
COMPETITION COMMISSION OF INDIA
(CCI)
Section 7 to 17 deals with competition commission of India.
Competition Commission of India is a body of the Government of India responsible
for enforcing The Competition Act, 2002 throughout India and to prevent activities
that have an adverse effect on competition in India.
Establishment of CCI (section 7)
With effect from such date as The central government may, by notification, appoint,
there shall be established, for the purposes of this act, a commission to be called
competition commission of India.

The commission shall be a body corporate by having perpetual succession and
common seal with power, subject to provisions of the act, to acquire, hold and
dispose of property, both movable and immovable.

The head office of the commission shall be at such place as the central
government may decide from time to time.
Commission of CCI (section 8)
Current Composition of CCI
Appointment of Chairperson & Other Members
(section 9)
The Chairperson and other Members of the Commission shall be
appointed by the Central Government, recommended by a Selection
Committee consisting of
a) the Chief Justice of India or his nominee - Chairperson;
b) the Secretary in the Ministry of Corporate Affairs - Member;
c) the Secretary in the Ministry of Law and Justice - Member;
d) two experts of repute who have special knowledge of, and
professional experience in international trade, economics, business,
commerce, law, finance, accountancy, management, industry, public
affairs or competition matters including Members.

Term Of Chairperson and Other Members
(section 10)
The Chairperson and other members shall hold office as such for a
term of 5 years from the date he enters his office and shall be eligible
for re-appointment.
Age limit for chairperson: 67 years
Age limit for other members: 65 years
In case of vacancy due to resignation or removal or death of the
Chairperson or any other members shall be filled by fresh
appointment.
Until the new Chairperson is appointed, the senior most member shall
act as the chairperson.
Resignation/Removal of suspension of
Chairperson and other members (section 11)
The Chairperson or other member shall be permitted by the central
government to resign his office sooner but continues to hold the office for 3
months from the date of receipt of such notice.
When the Chairperson or other members are declared as insolvents, they are
bound to resign.
Has worked in other office of profit.
Has been alleged upon the condition of moral turpitude.
Has acquired such functional or other interest as likely to affect prejudicially
his functions as a member.

Duties of the Commission (section 18)
Section 18 lays down the duties of the commission. It
provides that it shall be the duty of the commission to

Eliminate practices having adverse effect on competition
Promote and sustain competition
Protect the interests of consumers
Ensure freedom of trade carried on by other participants in markets
in India
Powers and Functions of the commission
Inquiry into certain agreements whether an enterprise enjoys dominant
position.(Sec.19)
Inquiry into combination by Commission.(Sec. 20)
Power to grant interim relief(Sec. 33)
Power to award compensation.(Sec. 34)
Power of Commission to regulate its own procedure(Sec. 36)
Power to rectify its own orders.(Sec. 38)


Penalties:
OFFENCE

1. Contravention of the order of the commission
or any condition or restrictions subject to
which any approval, sanction, direction or
exemption has been allowed or failure to pay
the penalty imposed under the act.
2. Failure to comply with the directions of the
commission or the direction general.
3. Making false statements or omission to
furnish material information by any party to a
combination.
4. Furnishing any statement or document which
he knows or has reason to believe to be false,
omission to state any material fact, wilful
alteration, suppression or destruction of any
document which is required to be furnished.
PENALTY

Imprisonment for a term up to one year or
penalty up to rupees 10 lakhs.



Penalty of rupees1 lakh for each day of default.

Minimum penalty of rupees 50 lakhs and
maximum up to Rs. 1 crore.

Penalty up to Rs. 10 lakhs
COMPETITION ADVOCACY (section 49)
The Central Government may, including review of laws related to
competition in formulating a policy on competition as the case may be,
make a reference to the Commission for its opinion on possible effect of
such policy on competition and on the receipt of such a reference,
the Commission shall, within sixty days of making such reference, give its
opinion to the Central Government, or the State Government, as the case
may be, which may thereafter take further action as it deems fit.

The opinion given by the Commission shall not be binding upon the Central
Government or the State Government, as the case may be in formulating
such policy.

The Commission shall take suitable measures for the promotion of
competition advocacy, creating awareness and imparting training about
competition issues

COMPETITON APPELLATE
TRIBUNAL(Section 53)
To hear and dispose of appeals against any direction issued or decision
made or order passed by the Commission

To adjudicate on claim for compensation that may arise from the findings
of the Commission or the orders of the Appellate Tribunal in an appeal
against any finding of the Commission and pass orders for the recovery
of compensation if any enterprise is penalized without proof.


Very appeal shall be filed within a period of 60 days from the date on which
a copy of the direction or decision or order made by the Commission is
received by the Central Government or the State Government or a local
authority or enterprise accompanied by such fee as may be prescribed

Condemnation of delay

THANK YOU!!!