Competitionlaw 124270746943 Phpapp01
Competitionlaw 124270746943 Phpapp01
Competitionlaw 124270746943 Phpapp01
Geetika Anand
26.02.2008
RUNTHROUGH OF CONTENTS
INTRODUCTION
COMPETITION ACT 2002
COMPETITION
(AMENDMENT) ACT 2007
Competition ?????
An economic rivalry amongst enterprises to control
greater market power.
Offers wider choice to consumers at lower prices.
Leads to optimal allocation of resources.
Two ways
Where two enterprises
adopt fair means such as
production of fair
goods/services, invstmt in
R&D etc.
Competition is fair
Legislative Background
Chapter III of MRTP Act scrapped in 1991 along with all
liberalization of other laws.
No restrictions on M&A activities in India for last 17 yrs.
Raghavan Committee, appointed in 2000, recommended a
new Competition Law, subject to fulfillment of certain preconditions: scrap reservation for SSI
revise labour and bankruptcy laws
repeal SICA, ULCRA and and other laws
eliminate price controls
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Background
Objectives :
Prevention of practices having adverse effect on
competition
Promotion & sustaining competition in markets
Protect the interest of the consumers
Ensure freedom of trade carried on by the other
participants in markets, in India.
IMPORTANT PROVISIONS
Prohibition on :
Anti-competitive agreements (Section 3)
Abuse of dominant position
Regulation of Combinations
(Section 4)
(Sections 5 & 6)
PREDATORY PRICING
The distinction between predatory behavior and competitive pricing is very thin
and not easily ascertainable.
Threshold Limit
Intimation necessary if it is above the following threshold
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TIMELINES
7. Shareholders/creditors meeting
8. Filing of petition to courts for scheme sanction
9. Court Order
20 th May 2008
(4-5 Months)
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(13 Months)
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COUNTRY
NOTIFICATION
INITIAL REVIEW
DETAILED
REVIEW
1.
United States
Mandatory
30 days
30 days
2.
25 days
90 days
3.
Australia
Voluntary
14 days
90 days
4.
China
Mandatory
30 days
90 days
5.
Germany
Voluntary
30 days
Max. 4 months
(If required)
6.
Netherlands
Mandatory
7.
Portugal
Mandatory
30 days
90 days
8.
Spain
Mandatory
30 days
60 days
30 days
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Provision
Earlier
Now
Earlier
Now
Intimation
Prior intimation of any
was optional
combination amongst cos,
& that also
group or persons, to be made
after the
within 30 days
combination. Also empower the commission
The time to
to impose a penalty of 1% of
be taken
the total turnover or the assets
was also
whichever is higher on failure
open-ended
to give such notice.
However intimation only if it
above a particular threshold
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Earlier
Now
CAT set up to hear and
COMPETITION Any appeal from
the order of the
dispose of appeals against
APPELLATE
Commission was to
any order or decision of the
TIBUNAL
be heard by the
Commission
Supreme Court
PENATIES
Commission itself
Rationalisation i.e.
had the power to
Penalties imposed in the
imprison in the
first instance will be
event of nonmonetary
compliance with the Only where the person who
orders
is in violation or noncompliance of the Act or
orders, continues to do so or
does not pay the penalties
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would criminal liability arise.
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THANK YOU
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