COMPETITION ACT 2002

TOPICS COVERED INTRODUCTIONTHE COMPETITION ACT 2002 IMPORTANT PROVISIONS OF THE ACTLATEST AMENDMENTS IN COMPETITION ACT

2002ESTABLISHMENT OF APPELLATE TRIBUNALUSEFULNESS OF COMPETITION ACT FOR THE

SOCIETYCARTEL

INTRODUCTION…

The Competition Act 2002 is an act to provide, keeping in view the economic development of the country for the establishment of a commission (known as Competition Commission)

To prevent practices that are having an 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 the market in India.

COMPETITION ACT… The competition act

2002, was enabled by the parliament of India and governs Indian competition law.

It was replaced the archaic MRTP Act, 1969.

PREAMBLE TO THE COMPETITION 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 and to ensure freedom of trade carried on by other participants in markets, in India, and for matters connected therewith or incidental thereto

THE OBJECTIVES OF COMPETITION LAW

"The main objective of competition law is to promote economic efficiency using competition as one of the means of assisting the creation of market responsive to consumer preferences. The advantages of perfect competition are three-fold: allocative efficiency, which ensures the effective allocation of resources, productive efficiency, which ensures that costs of production are kept at a minimum and dynamic efficiency, which promotes innovative practices."

(Judgment in Civil Appeal No. 7999 of 2010 pronounced on 9th September, 2010

IMPORTANT PROVISIONS OF THE ACT …

PROHIBITION OF ANTI – COMPETITIVE AGREEMENTS:• No enterprise or association of the enterprise or person or

association of person shall enter into any agreement in respect of production, distribution, supply, acquisition or control of goods or provision of service which cause or likely to cause an appreciable adverse effect on competition within India

• Any agreement entered into in contravention of previous contained sub section(1) shall be void

• Any agreement entered between enterprise or association of enterprise or persons or association of persons or any other enterprise or association including cartel engaged in identical or similar trade of goods or services which ….

• Any agreement amongst enterprise or person at different stages or level of the production chain in different markets in respect to production, distribution, supply, storage, sales or price of trade in goods and services including…

LATEST AMENDMENTS IN COMPETITION ACT 2002A n appellate body will be established to oversee the judicial requirements of the Competition Commission of India (CCI)

CCI and appellate body board members will be appointed by the chief justice of India

The CCI will not entertain complaints but rather receive information

The power to award compensation will move from the CCI to the appellate body

The high court will no longer be obliged to implement the CCI’s decisions

The CCI will lose the power to review its own orders

All appellate body proceedings will be regarded as being judicial

Only the appellate body will have the power to punish violation of the competition law.

ESTABLISHMENT OF APPELLATE TRIBUNAL(1) The Central Government shall, by notification, establish an Appellate

Tribunalto be known as Competition Appellate Tribunal -(a) to hear and dispose of appeals against any direction issued or decision

made or order passed by the Commission under sub-sections (2) and (6) of section 26, section 27, section 28, section 31, section 32, section 33, section 38, section 39, section 43, section 43A, section 44, section 45 or section 46 of the Act;

(b) to adjudicate on claim for compensation that may arise from the findings of the Commission or the orders of the Appellate Tribunal in an appeal against any finding of the Commission or under section 42A or under sub- section(2) of section 53Q of this Act, and pass orders for the recovery of compensation under section 53N of this Act.

(2) The Headquarter of the Appellate Tribunal shall be at such place as theCentral Government may, by notification, specify.

USEFULNESS OF COMPETITION ACT TO SOCIETY Make the markets work for the benefit and welfare of

consumers. Ensure fair and healthy competition in economic activities in the country for faster and inclusive growth and development of economy.

Implement competition policies with an aim to effectuate the most efficient utilization of economic resources.

Develop and nurture effective relations and interactions with sectoral regulators to ensure smooth alignment of sectoral regulatory laws in tandem with the competition law.

Effectively carry out competition advocacy and spread the information on benefits of competition among all stakeholders to establish and nurture competition culture in Indian economy.

CARTEL“CARTEL" includes an association of

producers, sellers, distributors, traders or service providers who, by agreement amongst themselves, limit, control or attempt to control the production, distribution, sale or price of, or, trade in goods or provision of services.

HON'BLE DR. JUSTICE ARIJIT PASAYAT CHAIRMAN

THANK YOU