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COMPETITION COMMISSION OF INDIA FEDERAL TRADE COMMISSION & DIRECTOR GENERAL OF FAIR TRADING : A COMPARATIVE STUDY

Arsha v

INTRODUCTION
INDIA

Competition Commission

USA

Federal Trade Commission Office of Fair Trading

UK

NEED FOR REGULATION OF COMPETITION


Price fixing Better availability

Preventing anti competitive practices


Prevent abuse of dominant position Prevent mergers/combinations

COMPETITION COMMISSION OF INDIA


Establishment-Section 7 of Competition Act 2002
Body corporate Perpetual succession Nature &Structure Common seal To acquire and hold property

Sue and be sued

COMPOSITION OF COMMISSION

The commission shall consist of chairperson ,two to six other members appointed by the central government Required quality ability integrity standing profession experience( not less than 15 years) international trade Economics Business Commerce Whole time members

APPOINTMENT OF DIRECTOR GENERAL


Appointed by Central Government(sub section(1) of section 16 of Competition Act) Purpose
Enforcing the Competition Act 2002 throughout India To prevent activities that have an adverse effect on competition in India

Assisted by any additional ,Joint, Deputy or Assistant Director General

DUTIES OF COMMISSION
Protect the interests of consumers and ensure freedom of trade carried on by other participants, in markets in India

To eliminate practices having adverse effect on competition

Promote and sustain competition

POWERS & FUNCTIONS OF COMMISSION


The Commission may call upon such experts, from the field of economics, commerce, accountancy, international trade or from any other discipline to assist the Commission in the conduct of any inquiry by it

Guided by the principles of natural justice and, subject to the other provisions of this Act and of any rules made by the Central Government

Commission shall have the powers to regulate its own procedure

KEY AREAS OF WORK


Prevention and elimination of anti competitive agreements practices and arrangements Prohibition of abuse of dominant position. Regulation of combinations. Competition advocacy.

APPEALS

Competition Appellate Tribunal (COMPAT)

An appeal has to be filed within 60 days of receipt of the order /direction / decision of the Commission.

FEDERAL TRADE COMMISSION OF USA


Created in 1915( Under Federal Trade Act 1914) Purposes
Protect the system of free enterprise and competition

To promote free and fair competition in interstate commerce

COMPOSITION OF COMMISSION
Consist of five commissioners

Seven year term


Maximum 3 members from the same political party

STRUCTURE & PURPOSES


Independent administrative agency To enforce the provision of Federal Trade Commission Act
-Prohibits: Unfair or deceptive acts or practice in commerce

Lacks punitive authority Can issue cease & desist order Act as a protector of both consumer and business rights

POWERS
FTC can interfere matters which relates to inter state commerce and include public good violation
FTC doesn't intervene dispute b/w private parties If cease and desist orders of FTC is Ignored it can seek civil penalties and compensa tion in federal court

Deals with internet commerce

3 BUREAUS
To interpret and enforce jurisdictional legislation
Bureau of Consumer Protection Protecting consumer from unfair deceptive & fraudulent practices Bureau of Competition Prevent antitrust activity and investigate activities involving restraint of trade Bureau of Economics Predict and analyze the economic impact FTC activities

DUTIES
Court look into 3 main factors in consumer unfair cases 1.whether the practice injures consumers. 2.whether the practice violates established public policy and 3.whether it is unethical or unscrupulous

Promote fair competition through the enforcement of certain antitrust laws.

Prevent the dissemination of false and deceptive advertising of goods

APPEALS
Can be moved against the FTC order to the commission The commission may either dismiss the case or issue cease and desist order Respondent has 60 days to take all necessary steps to obey the order or file an appeal through federal court system The decision by the commission can be appealed to US court of appeal and ultimately to U.S Supreme Court

OFFICE OF FAIR TRADING OF UK


The Enterprise Act 2002 made the Office of Fair Trading formally independent from government and gave additional powers. The role of the Director General of Fair Trading (DGFT) was abolished and his powers give to OFT. OFT has an express power to seal when inspecting business premises without warrant and any premises under warrant. OFT can publish guidelines on how long seals can be affixed for.

ROLE OF OFT
Analyzing markets Enforcing Consumer and Competition Law Merger control

Licensing Supervising Work advocacy Delivery information Education programs

POWER OF OFT
To investigate :
Whether there are reasonable grounds for suspecting that there is an agreement which May affect trade within United Kingdom. has as its object or effect the prevention ,restriction or distortion of competition within the United Kingdom. Where there is reasonable ground for suspecting that there is an agreement which May affect trade between members states Prevent, restrict competition within the community.

(CONTI.)
Where there are reasonable grounds for suspecting that at some time in the past there was an agreement which at that time.
May have affected trade between member states and Has as its object or effect the prevention ,restriction or distortion of competition within the community.

It is immaterial that whether the agreement in question remains in existence or not

APPEALS
Appeals from decision of OFT is first heard by the Competition Appeal Tribunal.( CAT )

Further appeals to Court of Appeal means the Court of Sessions.

COMPARISON
INDIA (CCI)
Competition Act 2002

USA (FTC)
Federal Trade Commission Act 1914

UK (OFT)
The Enterprise Act 2002

Key aeas of work Prevention of anti competitive agreements

Protect the system of free enterprise and competition

Analyzing markets ,merger control,licencing

Prohibition of abuse of dominant position

Preventing unfair methods ,deceptive acts, price fixing agreements

Enforcing consumer and competition law

Regulation of combination and competition advocacy

Preventing boycotts and combination in restraint of trade

Prevent anti competitive practices

INDIA

USA

UK

Having punitive authority

No punitive authority

No punitive authority

Any type of disputes which hindering competition may consider

It does not intervene disputes between private parties

All types of disputes considered

Does not define abuse of dominate position instead enumerate certain conducts

Do not enumerate any specific prohibited conducts

Enumerate conducts having abuse of dominant position

APPEALS

India COMPAT

USA US court of Appeal and to US Supreme Court

UK Competition Appeal Tribunal(CAT) and to Court of Sessions

CONCLUSION
In US and UK Competition Law originated in long back.

Indian Competition Law has a recent origin.

The OFT and DGFT were old institutions but CCI is a newly originated one.

These 3 legislations primarily deals with anti competitive agreements ,the abuse of dominant position and mergers and combinations.