Académique Documents
Professionnel Documents
Culture Documents
of Anti-Competitive
Agreements.
By: Siddharth Trivedi
B.Com (LL.B) 12
5th Year
Introduction
In the Competition Act 2002, some agreements specifically find
a mention for being exempted from the purview of being anti
competitive in nature even if they are likely to cause an AAEC
(appreciable adverse effect on competition) to the competition.
This proviso clearly offers a shield to the agreements which
lead to the setting up of joint ventures for the purpose of
achieving the larger interests like increased efficiency in
various manufacturing processes like production, supply,
distribution, storage, acquisition and control.
This is with a view to promote the interests of the consumer
and for the ultimate benefit of maintaining a healthy market
economy at the cost of competition.
EXEMPTIONS
Joint Ventures (JVs) Efficiency enhancing joint ventures to be
examined based on rule of reason
Case law:
The CCI, for instance, while assessing a franchise agreement
[Official Beverages v SAB Miller India, SKOL Breweries Limited,
Case No. 81 of 2012 dated 31 May 2013] has made a general
observation that a franchisor is permitted to impose reasonable
restrictions on a franchisee to protect the intellectual property
that has been licensed to the franchisee under the agreement.
However, in this case, the CCI did not analyze the specific
restraints that may be permitted.
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