The Competition Act was enacted in the year 2002 and it came into force on 13th January 2003. The objectives of the act have been set forth in its preamble which states that the act would provide for establishment of a Commission (i.e. Competition Commission of India) to prevent anti-competitive practices, to promote and sustain competition in the market, to protect the consumers and to ensure freedom of trade carried on by the other participants of the market.
What are the objectives of Competition Act?
The Competition Act came into force to promote and sustain competition in markets, safeguarding consumer interests and ensuring trade freedom carried on by other participants in the Indian market. The competition policy document of the Government of India recognises that imperfections in markets may lead to suboptimal outcomes.
What are the duties and powers of Competition Commission?
Its objectives, duties and powers are enumerated in the Competition Act, 2002. Its main duty and object is to ensure that the Indian markets maintain a healthy and fair competitive environment and is granted the power to ensure such an environment and penalise any acts adversely affecting its duties.
What is the main motive of Competition Act of India?
Main motive of the act was to promote the competition in the Indian market so that the interests of the customers can be protected and to ensure freedom of trade carried on by participants in the Indian market. India’s official anti monopoly body; the Competition Commission of India (CCI) had finally become operational from May 20, 2009.
What is the Competition Act 2002 in Civil Services Examination?
The Competition Act aims to prevent activities that have an adverse effect on competition in India This article will give further details about the Competition Act, 2002 within the context of the Civil Services Examination.
What are the objectives of the Competition Act?
The purpose of the Competition Act of 1998 is to promote and maintain competition in South Africa to achieve the following objectives: To promote the efficiency, adaptability and development of the economy. To provide consumers with competitive prices and product choices.
Which of the following is an object of the Competition Act, 2002?
Objective of the Competition Act, 2002 -to ensure freedom of trade carried on by other participants in markets in India and -for matters connected therewith or incidental thereto.
What are the main features of Competition Act?
What are the main features of Competition Act 2002?Prohibition of anti competitive agreements.Prohibition of abuse of dominance.Regulation of combination (acquisition, mergers, and amalgamation of certain size)Establishment of the competition commission of India.More items...
What are the components of Competition Act 2002?
Elements of Composition LawAnti-competitive Agreements.Abuse of Dominance.Merger, amalgamations and acquisitions control.Competition Advocacy.
What is not an objective of Competition Act 2002?
Preventing monopolistic rights arising out of the intellectual property is not the objective of The Competition Act, 2002.
What is Competition Act 2002 PDF?
(1) No enterprise or association of enterprises or person or association of persons shall enter into any agreement in respect of production, supply, distribution, storage, acquisition or control of goods or provision of services, which causes or is likely to cause an appreciable adverse effect on competition within ...
Which of the following is not an objective of Competition Act 2022?
Regulation of Combinations Was this answer helpful?
Which among the following is not an objective of Competition Act non regulation of combinations?
AProhibition of Restrictive Trade Practices.
When did the Competition Act, 2002 come into force Mcq?
The Competition Act, 2002Assented to13 January 2003Commenced31 March 2003Introduced byArun JaitleyRepeals7 more rows
Which of the following was replaced by competition 2002?
The Monopolies and Restrictive Trade Practices Act, 1969 [MRTP Act] repealed and is replaced by the Competition Act, 2002, with effect from 01st September, 2009 [Notification Dated 28th August, 2009].
What is the purpose of the Competition Act of 2002?
An Act to give, 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 ...
What is the competition law in India?
The Competition Act, 2002 was enacted by the Parliament of India and governs Indian competition law. It replaced the archaic The Monopolies and Restrictive Trade Practices Act, 1969. Under this legislation, the Competition Commission of India was established to prevent the activities that have an adverse effect on competition in India.
What is predatory pricing?
Predatory pricing: Predatory pricing means the sale of goods or provision of services, at a price which is below the cost of production of the goods or provision of services, with a view to reduce competition or eliminate the competitors.
What is the duty of the Commission?
Broadly, the Commission's duty is:-. To prohibit the agreements or practices that have or are likely to have an appreciable adverse effect on competition in a market in India, (horizontal and vertical agreements / conduct); To prohibit the abuse of dominance in a market;
When was the Monopolies and Restrictive Trade Practices Commission established?
The Monopolies and Restrictive Trade Practices Commission was constituted in the year 1970 . The Monopolies and Restrictive Trade Practices Act, 1969 had its genesis in the Directive Principles of State Policy embodied in the Constitution of India. It received the assent of the President of India on 27 December, 1969.
Is competition law applicable to oral agreements?
Competition laws is equally applicable on written as well as oral agreement, arrangements between the enterprises or persons. The Competition Act, 2002 was amended by the Competition (Amendment) Act, 2007 and again by the Competition (Amendment) Act, 2009. The Act establishes a Commission which is duty bound to protect the interests ...
What is the purpose of the Competition Act 2002?
Explanation of Competition Act 2002. Competition Act 2002 states that Indian traders must not do any activity for promoting monopoly. If they will do any activity in the form of production, distribution, price fixation for increasing monopoly and this will be against this act and will be void. This act is very helpful for increasing good ...
What is the function of competition commission?
Function of Competition commission:-. 1. To stop activity and practice which are promoting monopoly. 2. To promote the competition. 3. To protect the interest of consumers. Conclusion:-. India is doing all work for safeguarding the interest of consumer and this law is one of the important pillar in this way.
When did the monopoly and restrictive trade practices become popular?
In 1969 Govt. has passed an act and it had given the name monopoly and restrictive trade practices (MRTP). It became popular with the name o...
Is competition act void?
Above all activities promote monopoly so under competition act these are void and action of competition commission will not entertain by civil court.
What is the Competition Act 2002?
It’s an independent body responsible for investigating mergers, acquisition and pricing strategy by the different companies. Competition Act 2002 had replaced the Monopolies and Restrictive Trade Practices Commission, 1969.
What are the three ways that competition can have an adverse effect on the competition?
The Act identifies three ways which can have adverse effect on the competition. 1. Anti competitive agreement (vertical agreement, horizontal agreement) 2. Abuse of dominant position; enjoying a dominant position will not be crime but its abuse will be a crime. 3.
Why did CCI impose penalties?
In the recent years we have observed the CCI has imposed huge penalties on many companies for mis- using their dominant position in the market. Some years back CII imposed penalty on a big cement company for making cartel in deciding the price of the cement in India.
What is the competition commission of India?
It’s an independent body responsible for investigating mergers, acquisition and pricing strategy by the different companies. CCI had replaced the Monopolies ...
Why was the Monopoly and Restrictive Trade Practice Act 1969 obsolete?
The Monopoly and Restrictive Trade Practice Act 1969 became obsolete in the present world of throat cutting competition. The MRTP Act prevent the expansion of the companies whose assets was 100 crore, because these companies need to take government permission to expand their business.
How to protect the interests of consumers?
1. To protect the interests of the consumers by providing them good products and services at reasonable prices. 2. To promote healthy competition in the Indian market. 3. To prevent the interests of the smaller companies or prevent the abuse of dominant position in the market. 4. To prevent those practices which have adverse impact on competition ...
What was the main motive of the Act of 1871?
Main motive of the act was to promote the competition in the Indian market so that the interests of the customers can be protected and to ensure freedom of trade carried on by participants in the Indian market.
What is the main purpose behind the Competition Act 2002?
It is a tool to implement and enforce competition policy and to prevent and punish anti-competitive business practices by firms and unnecessary Government interference in the market. Competition laws is equally applicable on written as well as oral agreement, arrangements between the enterprises or persons.
What is the Competition Act of 2002?
Competition Act, 2002. The Competition Act, 2002 is a law that governs commercial competition in India. It replaced the erstwhile Monopolies and Restrictive Trade Practices Act, 1969. The Competition Act aims to prevent activities that have an adverse effect on competition in India. This article will give further details about the Competition Act, ...
What was the purpose of the Monopolies and Restrictive Practices Act of 1969?
The Monopolies and Restrictive Practices Act of 1969 was enacted to limit the concentration of wealth in a few hands and limit monopolistic practices , but it was too archaic in its definitions of what is a ‘monopolistic practice’. Thus, it was decided that a new law governing competition in India was required.
What is the difference between a cartel and an acquisition?
1. Acquisition: Acquisition is defined as the direct or indirect agreement to acquire shares, voting rights or control of assets over any enterprise. 2. Cartel: A cartel is defined as an association of producers, sellers who limit control distribution, sale or promotions on goods through an arrangement previously made.
What are the features of the Competition Act?
The following are the features of the Competition Act: 1. Anti Agreements: Any individual or enterprises shall not deal in production supply or distribution that may cause a negative impact regarding competition in India. Any existence of such agreements is considered illegal. 2.
What is the competition commission of India?
Competition Commission of India: The Competition Commission of India is an independent body with the powers to enter into contracts and should the contracts be broken they can sue the parties involved. The Commission consists of a maximum of six members who are tasked with sustaining and promoting the interests of consumers in order to foster an ideal environment for economic competition.
When was the Competition Act introduced?
Keeping the above purpose in mind the Competition Act was introduced in Lok Sabha on 6 August 2001. Competition Act: UPSC Notes:- Download PDF Here.
What are the objectives of the Competition Act?
Stated objective in preamble is to provide “for Establishment of a Commission”. 1) Eliminate practices having adverse effect on competition 2) Promote and sustain competition in markets 3) Protect consumers interests 4) Ensure freedom of trade carried on by other participants in markets, in India
What is the definition of a combination under the Competition Act?
III-Regulation of Combinations Combination Definitions • Broadly, combination under the competition Act means acquisition of control, shares, voting rights or assets, acquisition of control by a person over an enterprise where such person has direct or indirect control over another enterprise engaged in competing businesses, and mergers and amalgamations between or amongst enterprises when the combining parties exceed the thresholds set in the Act. The thresholds are specified in the Act in terms of assets or turnover in India and outside India.
What is the purpose of the IV-Competition Advocacy?
22. IV-Competition Advocacy • The aim of Competition advocacy is to foster conditions that will lead to a more competitive market structure and business behaviour without the direct intervention of the Competition Law Authority, namely the CCI • For promotion of competition advocacy and creation of awareness about competition issues, the Commission may take suitable measures to: • Promote competition advocacy. • Create public awareness. • Impart training about competition • The Commission shall render opinion on a reference from the Central Government on policy / law on competition. CCI is required to give opinion in 60 days; ( Section 49)
What are the types of combinations?
18. Types of combination • Horizontal combinations :These are those that are between rivals and are most likely to cause appreciable adverse effect on competition. Ex-Associated cement company with Damodar cement • Vertical combinations :These are those that are between enterprises that are at different stages of the production chain and are less likely to cause appreciable adverse effect on competition. Ex-Time warner Incorporated and turner corporation • Conglomerate combinations :These are those that are between enterprises not in the same line of business or in the same relevant market and are least likely to cause appreciable adverse effect on competition. EX-Walt Disney Company and american broadcasting company
What practices are stopped by the Competition Act?
Competition Act- What practices are stopped by it? • Under this act following are restricted practice and these practices are stopped by this act. 1. Price fixing: - • If two or more supplier fixes the same price for supply the goods then it will be restricted practice. 2. Bid rigging:- • If two or more supplier exchange sensitive information of bid, then it will also be restricted practice and against competition. 3. Re-sale price fixation:- • If a producer sells the goods to the distributors on the condition that he will not sell any other price which is not fixed by producer. 4. Exclusive dealing:- • This is also restricted practice. If a distributor purchases the goods on the condition that supplier will not supply the goods any other distributor. • Above all activities promote monopoly so under competition act these are void and action of competition commission will not entertain by civil court.
What are the benefits of competition?
5. Benefits from Competition • Companies : Efficiency, cost-saving operations, better utilization of resources, etc. • The Consumer : Wider choice of goods at competitive prices • The Government : Generates revenue BUT…………all these benefits are lost if Competition is UNFAIR or NON-EXISTANT • Choice of CARS in the olden days • MTNL Monopoly : The position today • Airlines : INDIAN AIRLINES : JET : SAHARA • Indian Railways : The monopoly continues….
What is the difference between fair and unfair competition?
Ways of Competition Fair Competition: Fair means such as producing quality goods, becoming cost-efficient, optimising the use of resources, best technology, research & Development, etc. Unfair Competition: Unfair means such as fixing price with the rivals, predatory pricing, disparaging or misleading advertisements, etc. 7.
Anti-Competitive Agreements
- In simple words, Anti-Competitive agreements are agreements that are made by two or more companies competing in the same market to fix prices or reduce stocks etc, so as to manipulate the market favourably for them. This has the effect of the companies reducing the competition in …
Abuse of Dominant Position
- The abuse of the dominant position is prohibited by Section 4 of the Competition Act. Abuse of dominant position is defined under the second part of the same Section. According to the act dominant position means any enterprise that enjoys the position and power in the Indian market which enables it to: 1. Operate independently of competitive forces in the relevant market. 2. Aff…
Remedies
- Remedies against AAEC agreements and abuse of dominant position are provided by the Competition Commission of India. Upon a review and enquiry into the alleged practices the Competition Commission may pass the following orders: 1. Direct the discontinuance of such practices. 2. Impose a penalty that is less than 10% or the turnover of the preceding three financ…
Competition Commission
- The Competition Commission of India is established under the Competition Act, 2002. It is a statutory body that has the power to govern and enforce the Competition Act including penalties. It was established when the need for a healthy competitive environment became necessary following liberalisation under the Vajpayee government. The Commission is composed of a chair…
Regulation of Combination
- The term combination has a broad definition under the Act, it includes: 1. any acquisition of shares, 2. voting rights, 3. control of assets, and 4. party to merger or amalgamation of enterprises. Any person/enterprise shall not enter into a combination that is likely to have an adverse effect on the competition and such a combination will be void. If any person/enterprise p…
Business Perspective
- Business operations in India necessitate the knowledge of the various laws and regulations and also the implementation of the same. Competition in the market is a huge challenge that needs to be dealt with carefully. It is essential for businesses to realize that although competition brings prosperity, thriving and striving shall be a continuous process. The various matters to be kept in …
Overview
The Competition Act, 2002 was enacted by the Parliament of India and governs Indian competition law. It replaced the archaic The Monopolies and Restrictive Trade Practices Act, 1969. Under this legislation, the Competition Commission of India was established to prevent the activities that have an adverse effect on competition in India. This act extends to whole of India.
Salient Features
Enterprises, persons or associations of enterprises or persons, including cartels, shall not enter into agreements in respect of production, supply, distribution, storage, acquisition or control of goods or provision of services, which cause or are likely to cause an "appreciable adverse impact" on competition in India. Such agreements would consequently be considered void. Agreements which would be considered to have an appreciable adverse impact would be those agreements …
History
The Government of India in April 1964 appointed the Monopolies Inquiry Commission under the Chairmanship of Justice K. C Das Gupta, a judge of the Supreme Court, to inquire into the extent and effect of concentration of economic power in private hands and prevalence of monopolistic and restrictive trade practices in important sectors of economic activity other than agriculture.
To regulate advertising, in 1984, Parliament inserted a chapter on unfair trade practices in the M…
Definitions
• Acquisition: Acquisition means, directly or indirectly, acquiring or agreeing to acquire shares, voting rights or assets of any enterprise or control over management or assets of any enterprise.
• Cartel: Cartel includes an association of producers, sellers, distributors, traders or service providers who, by agreement among themselves, limit control or attempt to control the production, distribution, sale or price of goods or provision of services.
See also
• National Competition Policy (India)
• Competition Commission of India
• Arbitrability Of Competition Disputes In The Indian Context
External links
• Competition Commission of India
• Competition Appellate Tribunal
• The Competition Bill, 2001
• The Competition (Amendment) Bill, 2006