1. Subject : law aspects of corporate business
COMPETITION ACT
Name : khavadiya arti s.
Roll no :25
Subject : law aspects of corporate business
Class : mcom sem 2

2. What is a competition ?
The word competition is not defined under the comoetition act , In normal terms refers to the set of activities carried by two different persons or organisations who or wchich are trying to be better then others.
" A situation in a market in wchich firms or sellers independently strive for the buyers patronage in order to achieves a particular business objectives " ( world bank 1999)
It is the foundation of an efficiently working market system

3. Why competition innovation Quality services. Better motivation
Competition force focus and differentiation
competition pushes you

4. Back ground of competion act 2002
In india the first competition law was enacted in 1969 that is monopolies and restrictive trade practices act 1969.
The enactment of MRTP act 1969 was based on the socio economic philosophy enshriched in the directive principal in the constitution of india .
Which was constitution by the government of india under the chairmanship of Justic Rajander Sachar in the year
In October under the chairmanship of mr.SVS
Raghavan competition law for the contry

5. On the basis of the recommendation of the Raghavan committee a draft competition law Was prepared and presented in november 2002
The monoplies and restrictive trend practices act 1969 ( MRTP act) repealed and was replaced by the competition act 2002

6. Competition act 2002
A new called competition act 2002 has been enacted to replace the extant law MRTP act 1969
The act was enacted to provide for the establishment of a commission to prevent practices having adverse effect on competition .
The competition act 2002 came into existence in january 2003 and the competition commission of india was establish on 14 oct.2003
The provision of competition act relating to anti. Competition agreement and abuse of dominant position were notified on 20 may 2009 .

7. DEFINITION
Acquisition : Agreement : Cartel : Consumer: Enterprise: Goods : Persone: Price: Relevant market: Service:

8. Objectives
The broad objectives of the competition act as laid down in its preamble are
Competition act 2002 notified in january 2003 started objectives in provide for establishment of a commission
to prevent practices having appreciable adverse effect on competition
To promots and sustain competition in market .
To protect the intrest of the consumers
To ensure freedom of trade carried on by other participants in markets in india .

9. PROHIBITION OF AGREEMENTS
Prohibition anti competitive arguments (sec. 3)
Prohibition abuse dominate positions (sec. 4)
Provides the regulations of combinations (sec. 5&6 )
Competition advocacy
PROHIBITION ANTI COMPETITIVE ARGUMENTS
(sec.3)
Enterprises ,persons or associations of enterprise or persons , including cartels ,shall not enter into agreements in respect of production , supply , distributio,storage

10. Conti......
Acquisition or control of goods or provision of services ,which cause or are likely to cause an "
appreciable adverse impact " on competition in india
such agreements would consequently be considered void.
Agreements which would be considered to have an appreciable adverse impact would be those agreements which
Directly or indirectly determine sale or purchase prices

11. Limit or control production supply ,market ,technical development ,investment or provision of servics .
Share the market or source of production or provision of services by allocation of Geographical area of market ,nature of goods or number of customers or any other similaf way.
Directly or indirectly result in collusive bidding .
TYPE OF AGREEMENT
Horizontal agreements
Vertical agreement

12. Horizontal agreement
Horizontal agreements which are among the enterprise who are or may compete within same business
price fixing ( section 3(2) (a) )
Limiting or controlling supply of goods or services
( section 3(2) (b))
Market allocation ( section 3(2)(c))

13. Vertical agreement
Agreement between enterprise at different stage of production ,distribution etc.
Agreement includes arrangements or understanding oral or in writing not necessarilly
enforceable by law.
Which are discussed in detail as under :
Tie in agfeement
Exclusive supply agreement
Exclusive distribution agreement
Refusal to deal
Resale price maintenance

14. ABUSE OF DOMINANT POSITION
Meaning of dominant position
Dominant position means a position of strength enjoyed by an enterprice,in the relevant market In india
Meaning of abuse of dominant position
Section 4 (1) of the act provids that no enterprise or group shall abuse its dominant position
Section 4(2) states that there shall be abuse of dominant position u/s 4(1) if an enterprise -

15. (a) directly or indirectly imposes unfair or discrimination
(b) limits or restricts
(c) indulges in practice or practices resulting in denial of market access in any manner
(d) makes conclusion of contracts subject to acceptance by other parties of supplementary obligation which by their nature have to connection with the subject of such contracts
(e) uses dominant position in one relevant market to enter into other relevant market

16. REGULATION OF COMBINATION
MEANING OF COMBINATION ( section 5)
Combination basically refers to coming together. The conbination may be by acquisition of control voting right or shares or may be way of amalgamation and merger.
The acquision of one or more enterprises by one or more persons or merger or amalgmation of enterprise shall be a combination .Acquision refers to acquiring shares ,voting rights or control of enterprise . According there are 3 elements of combination as under
(a) Acquisition of shares and voting rights

17. REGULATION OF COMBINATION (section 6)
(b) Acquisition of control
(c) Amalgamation or merger
REGULATION OF COMBINATION (section 6)
(1) notice of combination
(2) Effective date of combination
(3) investigation and order by competition commission of india

18. Competition advocacy The provision relating to competition advocacy
have been spelled under the act.
as per the provision of the sec.16 of the act in the course of formulating a policy on the competition the center government may make reference to the competition for its opinion on possible effect of such reference the commission shall given its opinion to the center government with the period of 60 days of making such reference and letter may formulate the policy as its deems fit

19. Competition commission of india (cci)
(1) Establisment of commission - section 7
establish a commission
Body corporate
The head office
To establish its office at other place
(2) Composition of commission - section 8
:No. of members
Qualification and experience
(3)Selection of chairperson and members of commission

20. (4) Term of office of chairperson and other members - section 10
(5) Resignation and removal of chairperson and other member of CCI - section 11
(6) Restriction on employment of chairperson and other members - section 12
(7) Salary and terms and conditions of service - section 13

21. DUTIES , POWERS AND FUNCTION OF THE CCI
general duties of cci - section
To elimininate practices having adverse effect on competition
To promote and sustain competition
To protect interests of consumers
To ensure freedom of trade carried on by other participants in marksts in india
inquiry into Combination -
To enter into memorandum or arrangement

22. Inquiry into certain agreement and dominant position of enterprice –(section – 19)
Inquiry into combination (section – 20)
Financial power

23. conclusion
The Indian competition act 2002 is very much comprehensive and enacted to meet the requirement of the economy growth and international economic developments relating to competition laws.
The legislation is in synchronization with other policies such as tread policy, norms ,FEMA etc. which would ensure uniformity in overall competition policy.

24. THANK YOU