LEGAL ASPECTS OF CORPORATE BUSINESS NAME :REENA K. JOTANIYA CLASS :M.COM -2 ROLL NO :21 ACADMIC YEAR :2017-18 DEPT. :DEPARTMENT OF COMMERCE SUBMITTED TO :DR. Daxa Pratapsingh

Competition Act, 2002 Conclusion Competition History Objectives Features Components Benifits Difference between MRTP and Competition CCI Composition of Competition Conclusion

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 objectives for example , profits , sales or market share” World Bank ,1999 “Competition” is an age-old phenomenon

History of competition Act The Government of India introduced the bill in 2001. Bill passed in Dec2002. On 13 Jan 2003 The president of India gave his assent. Competition commission of India (CCI) is advocacy for competition Act2002. It replace Monopolies and Restrictive Trade Practices Act1969. ec

Objectives of competition Act The competition Act, 2002 was enacted in January 2003. Its main objective are to: 1) Ensure fair competition in India, by prohibiting trade practices that have an adverse effect on competition 2)Promote and sustain competition 3)Protect the interests of consumers 4)Ensure freedom of trade for other participants in incidental and connected market 5)To create Equity in trade

Features of competition Act Prohibition of enti- competitive agreements Prohibition of abuse of governmant position Regulation of combinations Establishment of the competition commission of India Penalties for contravention and non -compliance Compitition advocacy Constitution of the competition fund.

Components Anti-competition agreements Abuse of dominance Combinations regulation Competition advocacy

BENIFITS Companies: Efficiency , cost-saving operations, better utilization of resources , etc. The Consumer: Wider choice of goods at competitive prices The Government: Generates revenue But...........

Con........... It is not necessary that there are a large number of producers/suppliers to have competition conditions. A single producer can exist and provide a competitive atmosphere provided entry of new firms is easy and not costly. Entry barriers can be due to the market position of incumbent firms , legal barriers or strategic barriers Incumbent firms may use their power as ” first movers” to block entry. Legal barriers include licensing and other Government regulations

DIFFERENCE BETWEEN MRTP AND COMPETITION Based on pre - reforms scenario Undertaking's size as a factor Implicit or not defined Complex in arrangement and language MRTP Act,1969 Commission appointed by the Govt. No penalties Reactive and rigid UTPs Covered Based on post -reforms scenario Undertaking's structure as a factor Explicit and defined Simple in arrangement and language and easily comprehensible Competition Act,2002 Commission selected by a committee Penalties Proactive and flexible UTPs omitted are

COMPETITION COMMISON OF INDIA (CCI) The Commission shall Consist Of A Chairperson and not less than two and not more than six members to be appointed by the central Govt. (U/S 8) Head office : Delhi Penal of names: The chief justice of India or his nominee - Chairperson The secretary in the Ministry of Company Affairs - Member The secretary in the Ministry of Law -Member

Conti......... Chef Justices of India: Ability to Integrate Capacity High court/Supreem Court Judge 15 Year Experience Whole time member 5 year Age limit 75 year Death- next senior chairman

Conti......... Power of CCI Financial Sallery Administrative Bench Principal Additional

CONCLUSION The competition law is very significant in the post liberalization era. Since India is a member country of WTO, the latter insists on fair and free competition in the trade across the nations of globe. IN Line With , WTO requirements, the Government. India replaced the old MRTP Act,1969 with the new Competition Act,2002.

Thank you