Competition ACT 2002

By :- Aastha Chauhan
MBA 1st year

INTRODUCTION
The Competition act, 2002 was enacted by the
parliament of India and government Indian
competition Law.
Keeping in view, the economic development of country,
for the establishment of a commission to prevent
practices having adverse effect on competition, to
promote and sustain competition in markets, to protect
the interest of consumers and to ensure freedom of
trade carried on by other participants in markets, in
India and for matters connected therewith or incidental
thereto , the competition act 2002 was introduced.

History
Government of India, introduced bill in
2001
Bill passed in December, 2002
On 13 January, 2003 president gave
assent for it.
Competition Commission of India (CCI) in
advocacy for competition Act 2002
It replaces monopolies and restricted
trade practices act 1969.

Objectives

Promoting economic efficiency in both static &

dynamic sense.
Protecting consumers from the undue exercise of
market power.
Facilitating economic liberation, including
privatization, deregulation and reduction of external
trade barriers.
Preserving and Promoting sound development of a
market economy.
Ensuring fairness and equity in market place
transactions.

Cont.
Protecting

the public interest ,

including in some cases considerations
relating to industrial competitiveness &
employment
Protecting opportunities for small and
medium business.

Features
Prohibits

anti competitive arguments

(section 3).
Prohibits abuse Dominant positions
(section 4).
Provides Regulations of combinations
(section 5,6).

Competition Law
It is tool to implement & enforce
competition policy and to prevent and
punish anti competitive government
interference in market.
Abuse of
This law generally covers
3 areas : ive
i
t it ts
n
A pet en
m em
o
c gre
a

dominant
position by
enterprise

Re
m gul
Ac er at
qu ge ion
is rs o
iti & f
on
s

Cont.
Anti Competitive
Agreements
Abuse of
dominant position
by enterprise
Regulation of
mergers and
acquisition

According to section 3 of this act, no enterprise or association of enterprise shall

enter into any agreement in respect of production, supply distribution, storage or
control of goods and provision of services, which causes or is likely to cause an
appreciable adverse effect on competition within India.

According to section 4, no enterprise shall abuse its dominant position. This

condition occur, when an enterprise directly or indirectly imposes unfair or
discriminatory purchase on goods and services.

Section 5 of this act, state that any person who proposes to enter into an
agreement or combination shall give a notice to the commission in the prescribed
form within seven days of occurrence of any of the board of directors of
respective companies accepting a proposal of merger, the conclusion of
negotiations of an agreement for an acquisition or acquiring control and
execution of joint venture agreement or shareholder agreement or technology
agreement.

Duties, powers and functions of CCI

Power to eliminate Anti- Competition Practices :
In regard of eliminating anti competition practices,
the commission will have to consider factors, such
as: There are barriers to new entrants in the market.
Existing competitors are being driven out.
Benefits to consumers are accruing.
Promotion of technical , scientific and economic
growth by means of production of goods and
rendering of services is taking place.

Cont.
Power to determine whether enterprise is
dominant:
With regard to determining whether an enterprise
is a dominant one, the commission has to
consider the following points.
Market share
Size and resources
Size and importance of competitors
Hold on consumers in terms of dependence on it
Size and structure of market

Cont.
Power to order an enquiry:
Under following circumstances
competition commission may order an
enquiry.
On receipt of an complaint
On reference by central/state
government or statutory authority.
On its own on the basis of its knowledge
and information.

Cont.
Power in the follow-up of an enquiry:
Under section 27 of the Act, has the following
powers
To put to an end to the impugned agreement
or else to stop the abuse forthwith.
To impose a fine which in its opinion will meet
the end of justice, which in any case should not
exceed 10 per cent of the average turnover of
previous 3 yrs.
To award compensation to the abused parties.

Thank you !!!