lab group presentation

8/2/2019 LAB Group Presentation

1/11

Presentation on

COMPETITION ACT 2002

Prepared By

Group 13

Shabi Aziz (49)

Hussain Ahmed (47)


2/11

COMPETITION ACT, 2002

The Competition Act, 2002 came into existence in January2003.

However, the Act could not be notified due to legal hassles.

Finally, the Parliament in September, 2007 passed the

Competition (Amendment) Act, 2007 and the Act becameoperational.

CCI (Competition Commission of India)came into existenceon 1st March, 2009.

Provisions were notified on May 20, 2009. The provisions relating to Combinations were notified w.e.f

1st of June, 2011.


3/11

PREAMBLE OF COMPETITION ACT,2002

To prevent practices having adverse effect oncompetition.

To promote and sustain competition in markets.

To protect the interests of consumers.

To ensure freedom of trade carried on by otherparticipants in markets in India.


4/11

Properties of the Act

The Act deals with following kind of agreements.Horizontal Agreements

Agreement to limit production and/or supply;

Agreement to allocate markets;

Agreement to fix price;

Bid rigging or collusive bidding;

Vertical Agreements

Tie-in arrangement;

Exclusive supply / distribution arrangement;

Resale price maintenance;

Refusal to deal.


5/11

ABUSE OF DOMINANCE

Abuse of dominant position includes: Imposing unfair conditions or price.

Predatory pricing.

Limiting production/market or technicaldevelopment.

Creating barriers to entry.

Applying dissimilar conditions to similar transactions.

Denying market access, and

Using dominant position in one market to gainadvantages in another market.


6/11

6

Combinations

MRTP Act

Provisions of the MRTP Act regarding registration ofundertakings, establishment of new undertakings, take-

overs, mergers and amalgamation were criticized on theground that they were based on an impractical anduntenable proposition that BIG is BAD

Ultimately, these provisions were repealed in 1991


7/11

7

Combinations

Competition Act The Competition Act seeks to regulate any acquisition,

acquiring of control, mergers or amalgamations if itresults in assets or turnover exceeding specified monetarylimits

Concept of voluntary notice is introduced. On receipt ofsuch notice, Competition Commission can inquire and approve the combination, or

direct that the combination shall not take effect, or

propose modifications

If no such Order is passed within a time-bound frame, thecombination is DEEMED TO HAVE BEEN APPROVED.


8/11

8

Combinations

Powers of Competition Commission

It can :

issue a Show Cause Notice to the parties

direct the parties to publish details of the combination invite members of the public to file written objections

pass appropriate Orders

Two questions are worth considering :

Is this just a back-door entry of earlier provisions of the MRTP Act?

Will monetary limits fixed five years ago remain relevant fiveyears hence ?


9/11

9

Case Studies

Columbia AVIANCA, Columbias largest airline planned a merger with

the countrys second largest airline, ACE.

Justifications given for the merger were :

AVIANCA had huge accumulated losses, and the mergerwould be a potential answer to its financial problems The merged airline could effectively compete with foreign

carriers in the international market HELD : Merger would be anti-competitive : The merged

airline would be FOUR times the size of its nearest domesticrival.


10/11

Case on Competition Act
http://mrtpc2.pdf/http://mrtpc2.pdf/


11/11

Thank You

lab group presentation

Documents