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Study of Cartels
in India
Sections Involved
Cartel is defined in Section 2, sub section (c) of the Act.
Section 3, sub section (3) of the Act states:
Any agreement entered into between enterprises or associations
of enterprises or persons or associations of persons or between
any person and enterprise or practice carried on , or decision
taken by, any association of enterprises or association of persons,
including cartels, engaged in identical or similar trade of goods
or provision of services, which(a) directly or indirectly determines purchase or sale prices;
(b) limits or controls production, supply, markets, technical
development, investment or provision of services;
Sections Involved
(c)
Authors View
The proviso of the Competition Act, 2002 clearly embarks a
difference between agreements that are entered through a Joint
Venture for increase efficiency in production, supply, distribution,
storage, acquisition or control of goods or provision of services (in
sort for the upliftment of the members of JV). That the said
agreements holds good in the eyes of law. Whereas according to
Section 1 of the Sherman Act states:
Every contract, combination in the form of trust or otherwise, or
conspiracy, in restraint of trade or commerce among the several
States, or with foreign nations, is declared to be illegal.
So through the plain reading of the enactment it can be inferred that
the US law entails in its purview any agreement entertained by the
parties that hampers the market and is in restraint of trade.