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ANTI COMPETITIVE AGREEMENTS

The Act provides that no enterprise or person shall enter

into any agreement which causes or is likely to cause anadverse effect on the competition within India.Such agreements shall be void.

ANTI COMPETITIVE AGREEMENTS :

Any agreement between competitors1) directly/ indirectly determines purchase / sale prices.2) limits or controls production, supply, investments. 3) shares the market by allocation of geographical area

4) directly or indirectly results in rigging. An agreement which causes or is likely to cause anappreciable adverse effect on competition includes:Exclusive supply / distribution / tie-in agreement etc..

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FACTORS WHICH CAUSE ADVERSE EFFECT

1) Creation of barriers to new entrants in the market.

2) Driving existing competitors out of the market.Foreclosure of competition by hindering entry into mk.REF. TEXT BOOK FOR MORE.PROHIBITION OF ABUSE OF DOMINANT POSITION:

The Act prohibits the abuse of dominant position byany enterprise or group. For example:1) Unfair discrimination in purchase / sale2) Limiting production of goods or services.

3) Restricts technical or scientific development4) Denial of market access.EXEMPTION OF COPY RIGHTS, PATENTS, DESIGNS ETC.

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COMBINATIONS

The acquisition of one or more enterprises by one or

more persons or merger or amalgamation of enterprisesshall be treated as combination of such enterprises andpersons or enterprises in the following cases:1) Acquisition by large enterprises

2) Acquisition by group3) Acquisition of enterprises having similar goods4) Merger of enterprises etc..REGULATION OF COMBINATIONS: Act prohibits any

person or enterprise to enter into a combination whichcauses or likely to cause adverse effect on competitionwithin the relevant market in India. VOID.

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