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SUBMI TTED BY:

ANNU BAHL
LL. M ( BUSI NESS LAW)
I V
TH
SEMESTER
AI ALS

REGULATION OF UNFAIR
TRADE PRACTICES UNDER
COMPETITION ACT 2002
TABLE OF CONTENTS
Introduction
Chapter-1:Competition Law in India
Chapter-2:Application of Competition Act.
Chapter-3:Regulatory framework
Chapter-4:Unfair Trade Practices
Chapter-5:Regulation of Unfair Trade Practices
Conclusion and Suggestion
INTRODUCTION
In the wake of economic liberalization and
widespread economic reforms, the Competition
Act 2002 was enacted . The Competition Act has
been designed to deal with matters relating to the
existence and regulation of competition and
monopolies.

COMPETITION LAW IN INDIA
Historical background for Competition Law.
Need of Competition Law.
Competition Policy
Repealing of MRTP Commission.

HISTORICAL BACKGROUND
Law governing competition is found in over two millennia
of history.
The formal study of "competition began in earnest during
the 18th century.
Modern competition law begins with the competition law
enacted by Canada in 1889 followed by the United States
legislation of the Sherman Act of 1890 and the Clayton
Act of 1914.
Articles 38 and 39 of the Constitution of India triggered to
Competition Law in India.
NEED OF COMPETITION LAW
India has become one of the worlds fastest growing
economies.
MRTP Act, 1969 had become obsolete in certain respects
in the light of international economic developments.
Raghavan Committee recommended for the new
competition policy in India.
REPEALING OF MRTP COMMISSION
By the Competition (Amendment) Ordinance, 2009, the
powers MRTP Commission was ceased.
This Ordinance amended Section 66 of the Competition
Act.
A period of 2 years was set to continue to exercise
jurisdiction and powers of MRTP Commission.
APPLICATIONS OF COMPETITION ACT
Anti competitive agreements. (Section-3)
Abuse of dominance. (Section-4)
Combinations regulation. (Section-5 & 6)
Competition advocacy. (Section-49)

ANTI COMPETITIVE AGREEMENTS
An agreement in respect of the production, supply,
distribution, storage, acquisition or control of goods etc,
which causes an "appreciable adverse effect on
competition within India, is an 'anti-competitive
agreement'.
The Competition Act prohibits anti-competitive
agreements and declares that such agreements shall be
void.
ABUSE OF DOMINANCE
An enterprise is free to grow as large as it pleases or
achieve as big a market share as it can.
Abuse of a dominant position occurs when a dominant
firm in a market is intended to eliminate a competitor.
The Competition Act does not frown on dominance as
such.

COMBINATIONS REGULATION
The term 'combination' for the purposes of the
Competition Act is defined very broadly.
Combination includes acquisition of shares, control,
voting rights or assets, mergers and amalgamations.
Sections 5 and 6 of the Competition Act are to regulate
'combinations and require prior notification and approval
where such provisions are applicable.

COMPETITION ADVOCACY
The ability of the competition office to provide advice,
influence and participate in government economic and
regulatory policies in order to promote more competitive
industry structure is called Competition Advocacy.
The provisions for Competition Advocacy are given under
Section 49 of the Competition Act.
REGULATORY FRAMEWORK
Establishment of Competition Commission.
Constitution.
Powers and Duties.
Competition Appellate Tribunal.

COMPETITION COMMISSION:
CONSTITUTION, POWERS & DUTIES
To achieve the objectives of the Competition Act the
Competition Commission of India has been established
from 14 October 2003.
CCI consists of a Chairperson and 6 Members appointed
by the Central Government.
The duty of the Commission is to eliminate practices
having adverse effect on competition, promote and sustain
competition, protect the interests of consumers and ensure
freedom of trade in the markets of India.
COMPETITION APPELLATE TRIBUNAL
The Central Government has set up the Appellate Tribunal
on 15
th
May, 2009 to hear and dispose of appeals against
any decision made or order passed by the Competition
Commission of India.
Its Headquarter is at New Delhi.
UNFAIR TRADE PRACTICES (SEC-36 A)
A trade practice which, for the purpose of promoting any
sale, use or supply of any goods or services, adopts unfair
method.
MTP & RTP
Monopolistic trade practices [Section-2(i)]
An MTP is a trade practice which has
maintaining the prices of goods at an unreasonable level by limiting,
reducing or otherwise controlling the production or
unreasonably preventing or lessening competition in the production or
limiting technical development or capital investment to the common
detriment .
Restrictive trade practices [Section-2(o)]
A practice which tends to obstruct the flow of capital or
resources into the stream of production is an RTP.
REGULATION OF
UNFAIR TRADE PRACTICES
Regulations for merger control
Part Enforcement without Merger Control

REGULATIONS FOR MERGER CONTROL
The Combination Regulations are to take effect from June
1, 2011 to supplement the notification of Sections 5 and 6
of the Competition Act, 2002.
Mergers are a normal activity within the economy and are
a means for enterprises to expand business activity.
The administration of merger control is generally carried
out by specialist statutory bodies, often being entrusted to
quasi judicial specialist tribunals in conjunction with
courts of general jurisdiction.
PART ENFORCEMENT WITHOUT MERGER CONTROL
Section 5 explains the types of acquisitions, mergers and
amalgamations that are combinations for the purpose of
the Act.
Section 6 prohibits combinations which causes or is likely
to cause an appreciable adverse effect on competition
CONCLUSION & SUGGESTIONS
Competition is accepted worldwide as the life blood of
the market economy. It spurs innovation and higher
productivity leading to accelerated economic growth; to
the consumers it brings the benefit of lower prices,
wider choices and better services. But competition
should be done in a fair manner and necessary reforms
in the legal system with regard to competition law
should be appreciated.
Thank you