1. THE COMPETITION ACT Presented by : Ripal Makwana Roll no : 27
Std : m.com sem- 2
Presented to : Dr. D. P. Chauhan

2. INTRODUCTION
The Competition Act, 2002 was enacted by the Parliament of India and governs Indian competition law. It replaced the archaic The Monopolies and Restrictive Trade Practices Act, Under this legislation, the Competition Commission of India was established to prevent the activities that have an adverse effect on competition in India. This act extends to whole of India except the State of Jammu and Kashmir.

3. Meaning of competition
It 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 , for example, profits, sales or market share.”
Competition rivalry may take place in terms of price, quantity, quality, services, or combination of these or other factors that the customers value.
Competition is always beneficial to the customers.

4. Backgrounds of the Competition Act, 2002
Agricultural products Act,1937
The Essential Commodities Act,1955
The Monopolistic & Restrictive Trade practices Act,1968
Consumer protection Act,1986
Competition Act, 2002

5. History of Competition Act,2002
In 1991, The Government of India appointed a High level Committee on Competition Policy and competition law.
The committee presented its competition policy report to the Government in may 2000.
The draft competition law was drafted and presented to the Government in November 2000.
The parliament passed the Competition Act in December 2002.

6. Objectives of Competition Act,2002
To ensure fair trade practices, by prohibiting trade practices.
To Promote sustainable competition.
To promote consumer interest.
To ensure freedom for the trade.
To create equality in a trade.

7. Features of the Competition Act,2002
Prohibition of anti- competitive agreements.
Prohibition of abuse of dominant position.
Regulation of combinations.
Establishment of the competition commission of India.
Penalties for contravention and non- compliance.
Competition advocacy
Constitution of the competition fund.

8. Components of the Competition Act,2002
Anti-competition agreements(section 3)
Abuse of dominance(section 4)
Combinations regulations(section 5&6)
Competition advocacy(section 49)

9. ANTI-COMPETITION AGREEMENT
Firms enter into agreements , which may have the potential of restricting competition. a scan of the competition laws in the world will show that they made a distinction between horizontal and vertical agreements between firms.
Two types: horizontal & vertical
Horizontal Agreements – Agreements between enterprise at the same stage of production , services , etc.

10. CONT......
Examples:
Directly or indirectly determine purchase or sales prices;
Directly or indirectly results in bid rigging or collusive bidding
Vertical agreements –Vertical agreements are pernicious, if they are between firms in a position of dominance . Agreements between enterprise at different stage of production , distribution etc.

11. CONT... Examples.. Tie-in arrangement; Exclusive supply agreement;
Exclusive distribution agreement;
Refusal to deal;
Re-sale price maintenance;

12. ABUSE OF DOMINANCE
Dominant position has been appropriately defined in the Act. In terms of the position of strength enjoyed by an enterprise, in the relevant market, in India Which enables it to(a) operate independently of competitive forces prevailing in the relevant market(b) affects its competitors or consumers or the relevant markets in its favour.

13. Cont...
Dominant position is the position of strength enjoyed by an enterprise in the relevant market which enables it to operate independently of competitive forces prevailing in the market affects its competitors or consumers or the relevant market in its favour.
Abuse of dominance arises if an enterprise:
Imposes unfair purchase or sale price
Limits production ,markets or technical development.

14. Cont... Denies market access.
Concludes contracts subject to obligations having no connection with the subject of the contracts.

15. Competition act on combinations regulations
The competition law also is designed to regulate the operation and activities of combinations, a term, which contemplates acquisitions , mergers or amalgamations.
The intent of legislation is not to prevent the existence of a monopoly across the board . There is a realization in policy making circles that in certain industries, the nature of their economies of scale indeed indicate the creation of a monopoly in order to be able to operate and remain viable and profitable.

16. Cont...
This is insignificant contrast to the philosophy, which propelled the operation of MRTP act.
If the parties to the combination choose not to notify the competition commission of India , they run the risk of a post- combination action by the CCI, if it is discovered subsequently, that the combination has an adverse effect on competition . There is a rider that the CCI shall not initiate an inquiry into a combination after the expiry date on which the combination has taken effect.

17. Cont..
The central government can make a reference to the CCI for its opinion on the possible effect of a policy under formulation or of an existing law related to competition . The commission will therefore be assuming the role of competition advocate , that promote deregulation and trade liberalization and that promote competition in the market place.

18. Competition commission of India
The competition act, 2002 provides for the establishment of the competition commission of India.
The CCI, inter alia has the power to:
Issue cease and desist orders
Grant interim relief
Award compensation
Impose fines
Order the division of dominant undertakings

19. CONT....
In its first year, the CCI engaged in competition advocacy. In the second year, it tackled cases related to anti-competitive practices other than mergers and Acquisitions, which was dealt from the year
In response, the Government of India has suggested that the Act will be modified and the CCI will be split into two bodies:
(1) the regulatory body to be headed by an expert.
(2) An appellate body to be headed by a judge.

20. Competition advocacy
The competition Act extends the mandate of competition commission of India beyond merely enforcing the High Level Committee,2000.Competition advocacy creates a culture of competition . There are many valuable roles for competition advocacy, depending on a country’s legal and economic circumstances .

21. CONT...
The amendment bill is yet to be finalized and approved by the parliament.
In this scenario, the CCI will be expected to play a balanced role, protecting both consumer interests and those of the Indian businesses.
The CCI will also have an important task of collaborating with the various sectoral regulator.

22. MRTP Act & Competition Act1
Based on the pre-reforms scenario.
Based on the post-reforms scenario. 2
MRTP Commission appointed by the government
Competition Commission Selected by a search committee 3
Complex in arrangement and language.
Simple in arrangement and language. 4
Registration of agreements compulsory.
No requirement of registration of agreements.

23. CONT.... 5 Reactive and rigid Proactive and flexible 6
Unfair trade practices covered
Unfair Tread Practices omitted are 7
No penalties for offences
penalties for offences 8
No competition advocacy role for the MRTP commission
Competition commission has competition advocacy role

24. Thank you