1. GREETINGS TO CHARTERED ACCOUNTANTS FOR ICAIS POST QUALIFICATION COURSE VIDEO CONFERENCE FROM HYDERABAD 26 AUGUST 2005

2. Copyright - Dr. S. Chakravarthy2 COMPETITION REGIME IN THE UNITED STATES OF AMERICA PRESENTATION BY Dr.S.CHAKRAVARTHY (Profession : Civil Servant) Member, High Level Committee on Competition Policy and Law And Member of Committee for Drafting the Law. PRESENTLY, ADVISER/CONSULTANT ON COMPETITION POLICY AND LAW HYDERABAD, INDIA

3. Copyright - Dr. S. Chakravarthy3 US COMPETITION REGIME | | US IMPLEMENTS COMPETITION POLICY THROUGH A VARIETY OF DOMESTIC LAWS | DOMESTIC LAWS INCLUDE: 1. COMPETITION (ANTITRUST) LAWS 2. CONSUMER PROTECTION LAWS (TO PROTECT CONSUMERS FROM FRAUDULANT SELLERS AND FROM DECEPTIVE INFORMATION ETC) 3. REGULATORY LAWS MANDATING CONSIDERATION OF COMPETITION INTERESTS 4. MARKET DEREGULATION ACT (COMMERCIAL AIRLINES, TELECOMMUNICATIONS ETC)

4. Copyright - Dr. S. Chakravarthy4 US COMPETITION LAWS SHERMAN ACT, 1890 CLAYTON ACT, 1914 FEDERAL TRADE COMMISSION ACT, 1914 HART-SCOTT-RODINO ANTITRUST IMPROVEMENTS ACT, 1976 THESE ACTS WERE NOT ENACTED AS A UNIT. THEY CAME INTO EXISTENCE AS NEED FOR EACH WAS PERCEIVED

5. Copyright - Dr. S. Chakravarthy5 FEATURES OF SHERMAN ACT,1890 PROHIBITS CONTRACTS AND CONSPIRACIES IN RESTRAINT OF TRADE AS WELL AS MONOPOLISATION OF OR ATTEMPTS TO MONOPOLISE TRADE PROSCRIBES CERTAIN BUSINESS CONDUCT THAT LIMITS COMPETITION SHERMAN ACT RELIES ON POWERFUL REMEDIES SUCH AS CRIMINAL PENALTIES AND TREBLE DEMAGES TO DETER SUCH CONDUCT SHERMAN ACT DOES NOT ADVOCATE GOVERNMENTAL CONTROLS OR LIMITATIONS ON BUSINESS ACTIVITY TO BRING ABOUT DESIRABLE CONDUCT

6. Copyright - Dr. S. Chakravarthy6 FEATURES OF CLAYTON ACT, 1914 IT IS THE PRIMARY TOOL FOR THE CONTROL OF ANTI- COMPETITIVE MERGERS AND JOINT VENTURES IT PROHIBITS INCIPIENT MONOPOLIES AND TRANSACTIONS WHICH HAVE POTENTIAL TO INJURE COMPETITION IT PROHIBITS PRICE DISCRIMINATION IN CERTAIN CIRCUMSTANCES (THROUGH ROBINSON-PATMAN ACT, 1936 WHICH AMENDED THE CLAYTON ACT) IT MAKES ILLEGAL STOCK ACQUISITIONS THAT LESSENS COMPETITION IT MAKES ILLEGAL PRICE DISCRIMINATION, TYING AND EXCLUSIVE DEALING

7. Copyright - Dr. S. Chakravarthy7 FEATURES OF FEDERAL TRADE COMMISSION ACT, 1914 THE ACT CREATED THE FEDERAL TRADE COMMISSION AND AUTHORISED IT TO PREVENT FIRMS FROM ENGAGING IN UNFAIR METHODS OF COMPETITION (UNFAIR METHODS OF COMPETITION ARE THOSE PRACTICES THAT VIOLATE THE SHERMAN AND CLAYTON ACTS) IT REACHES CONDUCT THAT IS CONTRARY TO THE BASIC POLICY OF THE SHERMAN ACT WITHOUT DIRECTLY VIOLATING THAT ACT

8. Copyright - Dr. S. Chakravarthy8 FEATURES OF HART-SCOTT-RODINO ANTITRUST IMPROVEMENTS ACT, 1976 THE ACT REQUIRES FIRMS TO NOTIFY PROPOSED MERGERS OR ACQUISITIONS EXCEEDING CERTAIN SIZE OF PARTY AND SIZE OF TRANSACTION THRESHOLDS IT PREVENTS CONSUMMATION OF THE PROPOSED TRANSACTION BEFORE THE END OF A PRESCRIBED WAITING PERIOD

9. Copyright - Dr. S. Chakravarthy9 MERGER PROVISIONS 1. CLAYTON ACT PROHIBITING MERGERS, ACQUISITIONS AND JOINT VENTURES THAT HAVE THE POTENTIAL TO INJURE COMPETITION 2. SHERMAN ACT COVERING CERTAIN TRANSACTIONS 3. FEDERAL TRADE COMMISSION ACT 4. HART-SCOTT-RODINO ANTITRUST IMPROVEMENT ACT (PRE-MERGER NOTIFICATION STATUTE )

10. Copyright - Dr. S. Chakravarthy10 REGULATORY AUTHORITY UNITED STATES DEPARTMENT OF JUSTICE (US DJ) FEDERAL TRADE COMMISSION (FTC) BY AND LARGE, USDJ HANDLES CASES RELATING TO COMPUTER SOFTWARE, FINANCIAL SERVICES, MEDIA AND ENTERTAINMENT AND TELECOMMUNICATIONS. FTC HANDLES CASES RELATING TO AUTOMOBILE AND TRUCKS, COMPUTER HARDWARE, ENERGY, HEALTH CARE, PHARMACEUTICALS AND BIOTECHNOLOGY BOTH THE AGENCIES REGULATE THROUGH INVESTIGATIONS, CIVIL LITIGATIONS AND CRIMINAL PROCECUTIONS

11. Copyright - Dr. S. Chakravarthy11 US DEPARTMENT OF JUSTICE THE ANTITRUST DIVISION OF USDJ IS HEADED BY ASSISTANT ATTORNEY GENERAL NOMINATED BY THE PRESIDENT OF US AND CONFIRMED BY SENATE HE SERVES AT THE PLEASURE OF THE PRESIDENT ASSISTANT ATTORNEY GENERAL HAS 5 DEPUTIES IN CHARGE OF CIVIL ENFORCEMENT, REGULATORY MATTERS, CRIMINAL ENFORCEMENT, INTERNATIONAL ENFORCEMENT AND ECONOMIC ANALYSIS TWO OR THREE OF THE DEPUTIES ARE POLITICAL APPOINTEES

12. Copyright - Dr. S. Chakravarthy12 FEDERAL TRADE COMMISSION «FTC IS AN INDEPENDENT REGULATORY AGENCY CONSISTING OF 5 COMMISSIONERS APPOINTED BY THE PRESIDENT OF THE US AND CONFIRMED BY SENATE «ONE COMMISSIONER IS DESIGNATED AS CHAIRMAN «COMMISSIONERS SERVE 7 YEAR TERMS

13. Copyright - Dr. S. Chakravarthy13 INVESTIGATING AGENCIES n BOTH THE ANTITRUST DIVISION OF THE DEPARTMENT OF THE JUSTICE AND THE FEDERAL TRADE COMMISSION ARE INVESTIGATING AGENCIES n THEY ARE ASSISTED BY ATTORNEYS, ECONOMISTS AND PROFESSIONALS

14. Copyright - Dr. S. Chakravarthy14 INDEPENDENCE OF USDJ AND FTC O ASSISTANT ATTORNARY GENERAL OF THE DEPARTMENT OF JUSTICE REPORTS TO THE ATTORNEY GENERAL O ATTORNEY GENERAL IS A MEMBER OF THE CABNET AND REPORTS TO THE PRESIDENT OF THE US O FTC IS AN INDEPENDENT AGENCY WITHIN THE EXECUTIVE BRANCH OF THE US GOVERNMENT. ITS FUNCTIONING IS SUPERVISED BY COMMERCE COMMITTEES OF THE HOUSE AND SENATE

15. Copyright - Dr. S. Chakravarthy15 REVIEW PROVISIONS – ANTITRUST DIVISION IS A PROSECUTORIAL AGENCY AND CASES ARE HEARD AND DECIDED BY FEDERAL DISTRICT COURTS – APPEALS OF THE TRIAL COURTS DECISIONS LIE TO FEDERAL COURTS OF APPEAL – US SUPREME COURT HEARS APPELLATE COURTS DECISIONS – FTCS DECISION LIE TO FEDERAL COURTS OF APPEAL

16. Copyright - Dr. S. Chakravarthy16 SECTORAL REGULATORS INDUSTRY – SPECIFIC REGULATORS HAVE COMPETITION POWERS IN AREAS LIKE TELECOMMUNICATIONS, ELECTRICITY, FINANCIAL SERVICES AND AIR LINES, A SEPARATE FEDERAL AGENCY IS VESTED WITH JURISDICTION EVALUATE PROPOSED MERGERS. ANTITRUST DIVISION COORDINATES CLOSELY WITH THE SECTORAL AGENCY

17. THANK YOU FOR YOUR KIND ATTENTION Copyright Dr. S. Chakravarthy