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    Presentation On Competition Law

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    KaranSingh
    The document provides an overview of competition law in India. It discusses the objectives of the Competition Act of 2002, which are to prevent anti-competitive practices, promote competition, protect consumer interests, and ensure freedom of trade. It outlines prohibited anti-competitive agreements and abuse of dominant market positions. Notable sections prohibit price-fixing, market allocation, and exclusionary conduct. The document also discusses the regulation of mergers and combinations over certain asset/turnover thresholds, the investigation powers of the Commission, potential penalties, and recent high-profile cases.

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    Presentation On Competition Law

    Uploaded by

    KaranSingh
    236 views16 pages
    The document provides an overview of competition law in India. It discusses the objectives of the Competition Act of 2002, which are to prevent anti-competitive practices, promote competition, protect consumer interests, and ensure freedom of trade. It outlines prohibited anti-competitive agreements and abuse of dominant market positions. Notable sections prohibit price-fixing, market allocation, and exclusionary conduct. The document also discusses the regulation of mergers and combinations over certain asset/turnover thresholds, the investigation powers of the Commission, potential penalties, and recent high-profile cases.

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    Presentation on Competition Law

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    The document provides an overview of competition law in India. It discusses the objectives of the Competition Act of 2002, which are to prevent anti-competitive practices, promote competition, protect consumer interests, and ensure freedom of trade. It outlines prohibited anti-competitive agreements and abuse of dominant market positions. Notable sections prohibit price-fixing, market allocation, and exclusionary conduct. The document also discusses the regulation of mergers and combinations over certain asset/turnover thresholds, the investigation powers of the Commission, potential penalties, and recent high-profile cases.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    236 views16 pages

    Presentation On Competition Law

    Uploaded by

    KaranSingh
    The document provides an overview of competition law in India. It discusses the objectives of the Competition Act of 2002, which are to prevent anti-competitive practices, promote competition, protect consumer interests, and ensure freedom of trade. It outlines prohibited anti-competitive agreements and abuse of dominant market positions. Notable sections prohibit price-fixing, market allocation, and exclusionary conduct. The document also discusses the regulation of mergers and combinations over certain asset/turnover thresholds, the investigation powers of the Commission, potential penalties, and recent high-profile cases.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 16

    Presentation on

    Overview of Competition Law in India


    by I. Sridhar

    Overview of Competition Law in India


    1.

    Introduction to Competition Act, 2002

    2.

    Objectives of Competition Act


    - Prevent Practices having adverse effect on competition
    - Promote & Sustain competition in markets
    - Protect Interest of consumers
    - Ensure freedom of trade carried on by other participants
    in the market
    - Competition advocacy

    Overview of Competition Law in India


    3.

    Prohibition of Anti Competitive Agreements Section 3(1)


    - No enterprise shall enter into any agreement in respect of
    production, supply, distribution, storage, acquisition,
    control
    of goods / services which causes or likely to cause
    appreciable adverse effect on competition.
    - Under the law the whole agreement is void

    Overview of Competition Law in India


    Prohibition of Anti Competitive Agreements Section 3(2)
    Agreements which
    - directly or indirectly determine purchase or sale price,
    - limits or controls production, supply, markets, technical
    development, investment or provision of services,
    - shares the market or source of production by way allocation
    of geographical area or type of goods or service,
    - directly or indirectly results in bid rigging or collusive
    bidding
    shall be presumed to have appreciable adverse effect on competition

    Overview of Competition Law in India


    Prohibition of Anti Competitive Agreements

    Section 3(4)

    Agreements which provides for


    - tie-in agreement
    - exclusive supply agreement
    - exclusive distribution agreement
    - refusal to deal
    - resale price maintenance
    shall be in contravention of Sec 3(1) if such agreement causes
    or likely to cause appreciable adverse effect on competition

    Overview of Competition Law in India


    4.

    Prohibition of Abuse of Dominant Position

    Section 4

    - No enterprise shall abuse its dominant position


    Dominant position means position of strength which
    enables to:
    - operate independently of competitive forces
    - affect its competitors or consumers or the relevant
    market its favour

    Overview of Competition Law in India


    Prohibition of Abuse of Dominant Position

    Section 4(2)

    There shall be abuse of dominant position, if an enterprise


    directly or indirectly imposes unfair or discriminatory
    condition in
    - purchase or sale of goods or service,
    - price in purchase or sale of goods or service
    (Predatory Pricing)

    Overview of Competition Law in India


    Prohibition of Abuse of Dominant Position

    Section 4(2)

    Limiting or restricting
    - production of goods or provision of service or market
    - technical or scientific development relating to goods or
    services to the prejudice of consumers
    - practices of denial of market access
    - makes conclusion of contracts subject to acceptance
    by other parties of supplementary obligations which have no
    connection with the subject of such contracts
    - uses dominant position in one market to enter into other
    relevant market

    Overview of Competition Law in India


    5.

    Regulation of Combinations Sections 5 & 6


    Commission to regulate Combinations, i.e., large mergers,
    acquisitions which are likely to have appreciable adverse effect
    on competition
    Threshold limits
    for single enterprise
    Assets > Rs. 1,500 crores
    Turnover > Rs. 4,500 crores
    for group of enterprises
    Assets > Rs. 6,000 crores
    Turnover > Rs. 18,000 crores

    Overview of Competition Law in India


    Threshold provided for overseas enterprises / groups
    for single enterprise
    Assets > $ 750M (min indian component Rs.750CR)
    Turnover > $ 2,250M (min indian component Rs.2,250CR)
    for group of enterprises
    Assets > $ 3 bn (min indian component Rs.750CR)
    Turnover > $ 9 bn (min indian component Rs.2,250CR)
    Notification of Combinations to Commission is mandatory within 30
    days of approval of such proposal by BODs or execution of any
    agreement / document.
    If notified, Commission to take decision within 210 days on the
    Combination.
    Decision may allow, disallow, modify, etc the Combination

    Overview of Competition Law in India


    6. Inquiry into Anti-competitive agreements / Abuse of dominance
    - Suo motu inquiry
    - On receipt of complaint
    - On receipt of a reference
    Commission has suo motu power to enquire whether a combination
    causes or is likely to cause an appreciable adverse effect on
    competition.

    Overview of Competition Law in India


    7. Powers of Commission
    - Cease & desist order
    - Impose penalty upto 10% of turnover
    - In case of Cartel, penalty can be 10% of turnover or 3 times
    of profit illegally gained from cartel activity, whichever is more
    - Recommend to Govt the division of dominant enterprise
    - Various penalties ranging from Rs. 1lakh upto Rs. 1 crore are
    also provided for failure to comply with direction / order of
    Commission

    Overview of Competition Law in India


    8. Recent cases concerning Anti-Competitive Agreements and Abuse
    of Dominant Position and Regulation of Combinations
    i) On Cement Cartel Fine of Rs. 6,200Cr
    ii) On DLF Fine of Rs.630Cr
    iii) On NSE Fine of Rs.55.5Cr
    iv) On BCCI for abusing power Fine of Rs.52.24 Cr
    v) M&M - Mahindra Navistar deal approval 9th Feb, 2013
    vi) Diageo-USL deal approval 26th Feb, 2013
    vii) On Tyre cartel and Sugar cartel
    viii) On agreement between SAIL and Indian Railways
    ix) On acquisition of Barclays creditcard business by Standard
    Chartered Bank

    Overview of Competition Law in India


    x) On merger of Nippon Steel, Sumitomo Metal Industries
    xi) On Coal India role in stagnant output
    xii) Probe on SBI & Associate banks CASA rates
    xiii) On FDI in retail

    Overview of Competition Law in India

    Thank You

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