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com

INTRODUCTION
Is a dynamic concept.
Is an amalgam of factors that

stimulate economic rivalry

Is a tool to mount market
pressure to penalise laggards
and to reward the enterprising

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OBJECTIVES
To overcome the limitations of MRTP act.
Economic development of the country.
To prevent the adverse effect on competition.
To promote & sustain competition in the

markets.
To protect the interests of consumers.

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Scope, Extent & Application

OfGoverns
The Act
major mergers, amalgamations &
takeovers.
Extends to the whole of India except J&k.
The MRTP act stands repealed on the
enactment of the Competition act.
Pending cases of MRTP act transferred to
Competition act except unfair trade
practices.

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Three Stages Of
Competition Act, 2002

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Various Terms Of
Competition Act,
2002
Public financial
Acquisition

Agreement
Cartel
Consumer
Enterprise
Practice
Price

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institution
Relevant market
Relevant
geographic market
Relevant product
market
Service
Trade

FOUR COMPARTMENTS

Anti-competition agreements
Abuse of dominance
Mergers, amalgamations,
acquisitions and take overs
Fostering competition

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ANTI - COMPETITION AGREEMENTS

HORIZONTAL RESTRAINTS :

VERTICAL RESTRAINTS :

Cartels {fixing purchase or sale

prices (export cartels exempted) }

Tie-in arrangements

Exclusive supplies
Bid-rigging (collusive
tendering)

Exclusive distribution

Sharing markets by territory, type

etc.
Limiting production,
technical development
The above are per se illegal.
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supply,

Refusal to deal
Resale price maintenance
Adjudication by rule of reason

ABUSE OF DOMINANCE
Dominance not linked to any arithmetic figure of market share
Dominance means a position of strength enabling an enterprise to operate
independently of competitive pressure and to appreciably affect the relevant
market,competition and consumers.
Abuse of dominance arises if an enterprise
imposes unfair /discriminatory purchase or sale prices (including
predatory prices)
Limits production,markets or technical development
Denies market access
Concludes contracts subject to obligations having no connection
with the subject of the contracts.
Uses dominance to move into or protect other markets
Relevant market = www.a2zmba.com
relevant product market + relevant geographic market

COMBINATIONS
MERGERS/AMALGAMATIONS
PEJORATIVE EFFECTS
1.
2.
3.
4.
5.

REDUCTION IN NUMBER OF PLAYERS

ACQUISITION OF ENORMOUS ECONOMIC STRENGTH
DISCOURAGEMENT OF NEW ENTRANTS
DICTATION OF PRICES
DOMINANCE

REGULATION ON COMPETITION PERSPECTIVE

1. COMPETITION LAW TO HAVE SURVEILLANCE OVER
COMBINATIONS BEYOND A THRESHOLD LIMIT
(Assets > Rs.1000 Crores or Turnover > Rs.3000 Crores )
2. NOTIFICATION OF COMBINATIONS VOLUNTARY AND
NOT MANDATORY
3. CCI MANDATED TO DECIDE WITHIN 90 WORKING DAYS
ELSE DEEMED APPROVAL
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COMPETITION ADVOCACY
THE COMPETITION COMMISSION OF
INDIA

to participate in the formulation

Isof enabled
policies and reviewing of policies relating

to competition at the instance of the

government
Is required to create competition culture
Is required to act as competition advocate
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COMPETITION COMISSION OF
INDIA (CCI)
Establishment of commission (sec -7)
Corporate body (sec -7(1))

Competition commission of india

having perpetual succession and a common seal . it can
acquire , hold and dispose of property ,both movable
and immovable
Offices (sec -7(3))
The office of the commission shall
be at such place as the central government may
decided
Composition of commission (sec -8)
Commission shall
consist of a chairperson and not less than 2 and 10 and
other member appointed by central government.

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 Qualification of Chairman and other member of commission

(sec 8(2))
Chairperson and every other member who are or
have been or are qualified to be , a judge of high court
have special knowledge of , and professional experience in
not less than 15 years ,economics ,business, commerce, law,
finance , accountancy, management , industry, etc..,
Term of office of chairman and other member (sec 10)
The chairperson and every other member shall hold
office as such for a term of 5 years .However , no chairperson
or other member shall hold office as such after he has
attained
(a) In the case of the chairperson , the age of 67 years
(b) In the case of the any other member , the age of
65 years
Vacancy (sec 10(1))
Any vacancy caused by resignation or
removal of the chairperson or any other member shall be
filled by a fresh appointment

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 Oath of office (sec -10(3))

The chairperson and every other member shall before

entering upon his office make and subscribe to an oath of
office and of secrecy of form.
Resignation , removal and suspension of chairperson and
other member (sec -11)
The central government may by order remove the
chairperson or any other member from his office if such
chairperson or member as the case may be
(a) Is at any time has been , adjudged as an insolvent
.
(b) Has engaged at any time , during his term of
office in any paid employment.
(c) Has acquired such financial or other interest as is
likely to affect prejudicially his functions as a member
(d) Has becomes physically or mentally incapable.
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 Salary and allowance and other term and condition of

chairperson and other member (sec 14 )

The salary and other terms and condition of
services of the chairperson and other member including
traveling expenses shall be equal to that of a judge of
the supreme court and judge of high court respectively.
Salary and allowance and other term and condition of
chairperson and other member (sec 14 )
Other term and condition of service including
traveling expense , HRA and conveyance facilities and
medical facilities shall be such as may be prescribed.
Appointment of director general etc., (sec-16)
Government may by notification appoint a
directory general and as many additional ,joint, deputy,
etc.., as may think fit for the purposes of assisting the
commission in conduction.
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 Salary of directory general

Salary, allowance and other term and conditions of

service of the director general such as may be prescribed.
Registrar and officer and other employees of commission
Commission may appoint a register and such
officers and other employees as it consider necessary for
the efficient performance of its function under this act
( sec 17(1))
Competition commission proposed staff strength : 125
( 50 economist , 50 lawyer and 25 finance professionals )
Under this law , all merger and acquisition in India
with a combined turnover of Rs. 3000 crores or assets in
excess of Rs. 1000 crores will have mandatory reported to
the CCI

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DUTIES OF COMMISSION (SEC-18)

(A) Eliminate practices having adverse effect on

competition
(B)Inquiry whether an enterprise enjoys dominant
position
1. Market share of the enterprise .
2. Size and resource of the enterprise .
3. Size and importance of the competition .
4. Economic power of the enterprise .
5. Social obligations and social costs.
(C) Inquiry into certain agreement and dominant
position of enterprise.
1. Receipt of a complaint from any person ,
consumer or their associate or trade association.

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Power of Commission
Power grant Interim Relief (Sec 33)
Power to award compensation (Sec 34)
Appearance before commission (Sec 35)
Power to regulate its own procedures (Sec 36)
Review of orders of commission (Sec 37 & 40)

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Power of Commission
Execution of Orders (sec 39)
Independent Authority (sec 61 )
Power to investigate (sec 41)
Penalties (sec 42 )
Contravention by Companies (sec 48 )

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Power of Central Govt

Power to exempt (sec 54 )
Power to supersede (sec 56 )
Repeal Saving (sec 66 )

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