Vous êtes sur la page 1sur 13

COMPETITION ACT -2002

INTRODUCTION Because of globalization ,India opened up its economy removing controls and resorting to liberalization. The MRTP Act 1969 has become obsolete and there is need for new competition law.

SALIANT FEATURES OF THE ACT


PROHIBITION OF ANTI COMPETITIVE AGREEMENTS. PROHIBITION OF ABUSE OF DOMINANCE. REGULATION OF COMBINATIONS. ESTABLISHMENT OF COMPITITION COMMISSION OF INDIA AND FUNCTIONS AND POWERS OF CCI.

PROHIBITION OF ANTI COMPETITIVE AGREEMENTS.


The competition bill deals with those agreements between enterprises which have an appreciable adverse effect on competition. This means that all restrictive agreement are not held to be Anti competitive. The agreements which have appreciable adverse effect on competition are- If it directly or indirectly determines purchase or sale prices - Limits or controls production ,supply, markets, technical development, investment or provision of services. - Shares the market or source of production. - Directly or indirectly results in collusive bidding.

PROHIBITION OF ABUSE OF DOMINANT POSITION


The competition bill regulates all agreements, which could result in abuse of dominance. The expression dominant position means a position of strength enjoyed by an enterprise in the relevant market and also appreciably affect the relevant market competition and consumers by its actions. ABUSE would include agreements charging or paying unfair prices , restriction of quantities, markets and technical development. It includes discriminatory behavior, predatory prices and any exercise of market power leading to the prevention and restriction of competition.

REGULATION OF COMBINATIONS
The acquisition of one or more enterprises by one or more persons or merger amalgamation of enterprises shall be a combination of such enterprises and persons. Sec( 6) of the competition Act provides that combinations that cause or likely to cause appreciable adverse impact on competition with in the relevant market are void. Sec6(2) makes it voluntary for the parties to notify there proposed agreement or combination to the competition commission of India.

Competition commission of India


Definition Sec-7- The commission shall be a body corporate by the aforesaid name having perpetual succession and a common seal with power to acquire, hold and dispose of property. The place of head office of the commission shall be decided by the central govt. Composition Sec 8- The commission shall consist of a chairperson and not less than two and not more than ten other members appointed by central govt. A person who is qualified to be a judge of a high court or is having special knowledge of international trade, economics,business,commerce,law, shall be eligible for appointment as a chairperson or as a member.

DUTIES , POWERS AND FUNCTIONS OF CCI


DUTIES To eliminate practices having adverse effect on competition. Promote and sustain competition. Protect the interest of the consumer Ensure freedom of trade carried on by other participants in market.

POWERS OF COMMISSION
Section 19 empowers the commission to conduct an inquiry either on its own or on receipt of complaint from any person, consumer, trade association, central govt, state govt or a statutory authority in relation to an agreement having appreciable adverse effect on competition, whether an enterprise enjoys the dominant position or whether a market constitute a relevant market. Sec 33 empowers the commission to grant interim relief by way of temporary injunction. In other words during an inquiry before the commission if it is proved to the satisfaction of the comm that an act of contravention has been committed commission can grant a temporary injunction restraining any party from carrying on such act until the conclusion of such inquiry is reached.

Section 34 empowers the commission to deal with applications made to it by any applicant for recovery of compensation from any enterprise for any loss or damage suffered by him as a result of any contravention of the provisions and to award compensation to such applicant. Section 36 confers powers upon the commission to regulate its own procedures while conducting inquires. The commission shall not be bound by the procedure laid down by the code of civil procedure 1908 but shall be guided by the principle of natural justice. Every order passed by the commission under the Act shall be enforced by the commission in the same manner as if it is a order made by a high court or the principal civil court.

PENALTIES AND OFFENCES


OFFENCE Failure to comply with directions given by the commission or the director general. Making false statement or omission to furnish material information. Failure to furnish any particulars ,documents or information ,willfully alters ,suppresses or destroy any document PENALTY Rupees one lakh for each day during which such failure continues.

Rupees fifty lakhs or rupees one crore , as may be determined by the commission. Rupees ten lakhs.

PENALTIES AND OFFENCES


Where any person contravenes the order of the commission or any condition or any restriction subject to which any approval sanctioned or failure to pay the penalty imposed Imprisonment for a term up to one year or penalty in lakhs.

IMPORTANT DEFINITIONS
ACQUISITION-It means directly or indirectly acquiring or agreeing to acquire Shares, voting rights or assets of any enterprise Control over management or control over assets of any enterprise. CARTEL-It includes an association of producers, sellers,distributers ,traders or service producers,who,by agreements amongst themselves,limit,control or attempt to control the production,distribution,sale or price of goods and services.

DEFINITIONS
ENTERPRISE-It means a person or department of govt.who or which is, or has been, engaged in any activity, relating to the production, storage,supply, distribution or control of articles or goods or the provision of acquiring, holding, underwriting or dealing with shares, debentures or other securities of any other body corporate, either directly or through one or more of its units located at same place or different places. RELEVANT MARKET-It means the market which may be determined by the commission with reference to the relevant product market.
.