Competition Act
COMPETITION ACT, 2002
1
OBJECTS / PREAMBLE OF THE ACT
An Act to provide keeping in view of the economic development of the 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 interests of consumers;
to insure freedom of trade carried on by other 2 participants in markets, in India;
OBJECTS / PREAMBLE OF THE ACT
In precise terms:
The purpose of the Act is to ensure fair competition in India.
3
OBJECTS / PREAMBLE OF THE ACT
Applicability of the Act:
The Act applies to all goods (including goods imported into India) and services.
The Act is applicable to all enterprises :
1. Private sector; 2. Public sector; 3. Govt. dept. performing non – sovereign functions.
Exceptions: Sovereign functions of the govt. including atomic energy, currency, defence and space. 4
BRIEF STRUCTURE OF THE COMPETITION ACT
Section 1 – Short Title, Extent and Commencement
Section 2 – Definitions
Section 3 – Prohibition of Anti Competitive Agreements
Section 4 – Prohibition of Abuse of Dominant Position Section 5 & 6 – Regulation of Combinations 5 Section 7 & 8 – Establishment and Composition of Commission
PROHIBITION OF ANTI COMPETITIVE AGREEMENTS (SECTION 3)
No enterprise shall enter into any agreement in respect of production, supply, distribution, storage, acquisition or control of goods, which causes or is likely to cause an appreciable adverse effect on competition within India.
Aforesaid agreement, if entered into shall be VOID.
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WHAT IS AGREEMENTS (SECTION 2(B))
Agreement includes any arrangement understanding or action in concert: or
1. Whether or not such arrangement, understanding or action in concert is formal or in writing; or 2. Whether or not such arrangement, understanding or action is intended to be enforceable by legal proceedings;
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AGREEMENT
1
OBJECTS / PREAMBLE OF THE ACT
An Act to provide keeping in view of the economic development of the 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 interests of consumers;
to insure freedom of trade carried on by other 2 participants in markets, in India;
OBJECTS / PREAMBLE OF THE ACT
In precise terms:
The purpose of the Act is to ensure fair competition in India.
3
OBJECTS / PREAMBLE OF THE ACT
Applicability of the Act:
The Act applies to all goods (including goods imported into India) and services.
The Act is applicable to all enterprises :
1. Private sector; 2. Public sector; 3. Govt. dept. performing non – sovereign functions.
Exceptions: Sovereign functions of the govt. including atomic energy, currency, defence and space. 4
BRIEF STRUCTURE OF THE COMPETITION ACT
Section 1 – Short Title, Extent and Commencement
Section 2 – Definitions
Section 3 – Prohibition of Anti Competitive Agreements
Section 4 – Prohibition of Abuse of Dominant Position Section 5 & 6 – Regulation of Combinations 5 Section 7 & 8 – Establishment and Composition of Commission
PROHIBITION OF ANTI COMPETITIVE AGREEMENTS (SECTION 3)
No enterprise shall enter into any agreement in respect of production, supply, distribution, storage, acquisition or control of goods, which causes or is likely to cause an appreciable adverse effect on competition within India.
Aforesaid agreement, if entered into shall be VOID.
6
WHAT IS AGREEMENTS (SECTION 2(B))
Agreement includes any arrangement understanding or action in concert: or
1. Whether or not such arrangement, understanding or action in concert is formal or in writing; or 2. Whether or not such arrangement, understanding or action is intended to be enforceable by legal proceedings;
7
AGREEMENT