Competition Act

• Submitted to :
Prof. Pooja bhakuni
Submitted by:
Nikita Singhai
Deepali Jain
Nikhi Jain
 Competition what
A situation in the market , in which seller
independently strive for buyer patronage to
achieve business objectives such as profits
, sales & market share .
It is the foundation of an efficiently working
market system.
 Competition –why
 The ultimate objective of competition is to secure
the interest of the consumer – it empowers the
consumer, best guarantee for consumer
protection.
 It is a means of reducing cost &improving quality.
 It also implies an open market where shortage
are rapidly estimated through the best allocation
of resources.
 It accelerates growth &development; preserves
economic& political democracy.
 Competition policy
Competition policy is defined as those govt.
measures that affect the behavior of
enterprises & structures of the industry . It is
to promote efficiency & maximize
welfare(sum of consumers ,surplus and
producers , surplus &taxes collected by the
govt. ) .
 Competition policy goals
Preservation and promotion of the
competitive process .
Efficiency in production & allocation of goods
& services .
Innovation & adjustment to technological
change.
Sustained economic growth .
 The new law
A new law called competition act 2002 has
been enacted to replace the extant law ,MRTP
Act 1969 .
The law was challenged in the supreme court
on the ground that the chairperson should
only be from the judiciary .
The new law has been amended on 10 sep
2007 by the parliament .
Competition act - objective
Competition act ,2002 notified in Jan. 2003 .
Stated objective in preamble is to provide “for
establishment of commission .’’
To prevent practices having appreciable
adverse effect on competition .
To promote & sustain competition in market .
To protect the interest of the consumers .
To ensure freedom of trade carried on by
other participants in markets, in India .
 Main features :
1.anti competition agreement
Sec.3 of the act deals with agreement among
enterprises or persons , AOP, which cause or
likely to cause appreciable adverse effect on
competition. The act deal with following kind
of agreement.
• Horizontal agreement
• Vertical agreement
2. Abuse of dominant position
Unlike MRTP law, the act does not frown on
dominance by market players .but the abuse
of ‘Dominance’ or ‘Dominant position’ means
a position of strength, enjoyed by an
enterprise, in the relevant market , in India .
 3. Regulation of combination
Combination include acquisition of
shares, acquiring of control &mergers n
amalgamations. These combinations can be
horizontal type of combination that has very
high potential to thwart competition when
compared to other kinds of combinations.
 4. Competition advocacy
The commission shall take suitable measures
to:
o Promote competition advocacy
o Create public awareness.
o Impact training about competition issues.

The commission shall opinion or a reference

from the central govt. on a policy /law of
competition not binding .
Benefits