(new)The Competition Act

The Competition Act 2003 & 2007 The Competition bill was passed by both the houses of Parliament in December 2002, and The President of India give his assent on January 13,2003. and the Competition Act 2003 came in to being. The New Act is more relevant to the current competitive environment in which Indian Industries operates.

Objectives of the Competition Act (a) To prevent practices having adverse effect on Competition. (b) to promote and sustain competition in markets. ( c ) to protect the interests of the Consumers ( d ) to ensure freedom of trade carried on by other participants in markets. ( e ) To establish a commission which shall be a nodal agency to oversee the Administration of this legislation. For this purpose the COMPETITION COMMISSION OF INDIA was established (CCI)

Scope of the Act The Competition Act 2002 extends extends to the whole of India except the state of Jammu and Kashmir. It shall come in to force on such date as the Central Government May notify in the Gazette. Salient FEATURES The Main focus of the competition Act,2002 is contained in section 3 to 6 of chapter 11 which deal with certain practices that have an adverse effect on competition. These practices have been described and defined as anti –competitive agreements.

PENALTIES UNDER The Competition Act 1. Contravention of orders of CCI Section 42 of the Act, which was revised as Competition (Amendment) Act 2007, provides a harder penalty of not exceeding Rupees Ten lakhs or imprisonment for a term for up to one year or both as per the jurisdiction of the Civil Court. 2. Any person does not comply with the orders or directions issued, or fail to pay the fine,is punishable with imprisonment of up to three years.

Penalty for Non-furnishing Information (Notice) of Combination The Commission (The Competition Commission of India) shall impose on such person or enterprise a penalty which may extend to 1% of the total turnover of the Assets of such combination Penalty for making false statement Or Omission to furnish Material information. Such persons shall be liable to a penalty which shall be not less than Rs. 50 lakhs,which may extend up to Rs. 1 crore.as may be determined by the Commission. (CCI) Penalty for offenses in relation to furnishing of Information: (Section 45) A penalty which may extend to Rs. 10 lakhs