NAME:- MAGRA ASHISH CLASS:- M.COM (SEM-II) ROLL NO.:- 26 COMPETITION ACT NAME:- MAGRA ASHISH CLASS:- M.COM (SEM-II) ROLL NO.:- 26

What is competition act? It is "a situation in a market in which firms or sellers independently strive for the buyers patronage in order to achieve a particular business objective for example, profits, sales or market share "(world Bank,1999). It is the foundation of an efficiently working market system. the process of rivalry between firms striving to gain sales and make profits. Motive : self-interest, but outcome mostly beneficial for the society. competition is not just an event, but a process. it is not automatic- needs to be nurtured .

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. Dominant position: It means a position of strength, enjoyed by an enterprise, in the relevant market which enables it to operate independently of competitive forces prevailing in the market of market or affect its competitors or consumers in its favour.

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. Rule of reasons: It is the analysis of any activity under the challenge on the basis of business justification, competitive intent, market impact, impact on competition and on consumer. It is the logic behind the conclusion for any order.

1. Types of competition 2. ways of competition Price competition: winning customers by lowering price. Non-price competition : winning customers by advertising ,offering after-sales services, using sale promotion tools, etc. 2. ways of competition fair competition: fair means such as producing quality goods, becoming cost-efficient, optimizing the use of resources, best technology research and development, etc. unfair competition: unfair means such as fixing price with the rivals, predatory pricing, disparaging or misleading advertisement, etc

Objectives The broad objective of the competition act, as laid down in its preamble are: Competition act,2002 notified in january 2003. Started 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 interest. 4. Ensure freedom of trade carried on by other participants in markets in india.

Features 1. Anti-competition agreement. enterprises, persons or associations of enterprises or persons, including cartels, shall not enter into agreement 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 agreement would consequently be considered void. Agreement which would be considered to have an appreciable adverse impact would be those agreement which

Directly or indirectly determine sale or purchase prices, limit or control production, supply, markets technical development, investment or provision of services. Share the market or source of production or provision of services by allocation of inter alia geographical area of market, nature of goods or number of customers or any other goods or number of customers or any other similar way. directly or indirectly result in bid rigging or collusive bidding.

Types of agreement Competition law identifies two type of agreements. Horizontal agreements which are among the enterprises who are or may compete within same business. Second is the vertical agreement which are among independent enterprise. Horizontal agreement is presumed to be illegal agreement but rule of reasons would be applicable for vertical agreements.

Meaning of dominant position : "Dominant position" means a position of strength enjoyed by an enterprise, in the relevant market in India, which enables it - 1) to operate independently of competitive forces prevailing in the relevant market, or 2) to affect its competitors or consumers or the relevant market in its favor .consumers or the relevant market in its favor.

Abuse of dominant position There shall be an abuse of dominant position if an enterprises imposes directly or indirectly unfair or discriminatory conditions in purchase or sale of goods or services or restricts production or create hindrance in entry of new operatOrs to the prejudice of consumers. the provisions relating to abuse of dominance in the relevant market.

Meaning of combination (section 5) :- The acquisition of one or more enterprises by one or more persons or merger or amalgamation of enterprise shall be a combination. Acquisition refers to acquiring shares, voting rights or control of enterprise. according there are 3 elements of combination as under: (A) Acquisition of shares and voting rights (B) acquisition of control (C) amalgamation or merger

Competition Commission of India (CCI) (1) Establishment of Commission- section 7 (a)the central government by a notifications may establish a Commission to be called "competition Commission of India". (B) the Commission is a body corporate having perpetual succession and a common seal and is entitled to acquire, hold movable or immovable property and to enter into contract in its name and by the said name, sue or be sued. (C) The head office of the Commission shall be at such place as the central government may decide from time to time .vide notification: SO 1198(E) dated 14th Oct ,2003,the central government established the competition Commission of India having its head office at Delhi. (D) the Commission has also been authorized to establish its office at other place in India.

(2) Competition of Commission- section 8 (A) No. of members: the CCI shall consist of a chairperson and not less than two and not more than six other member and are appointed by the central government. (B) Qualification and experience: the chairperson and the members shall be person of ability, integrity and standing and shall be having special knowledge of and such professional experience of not less than fifteen year in international trade, economics, business, commerce, law, finance, accountancy ,management, industry, public affairs or competition matters including competition law and policy which in the opinion of the central government may be useful to the Commission .the chairperson and other members are to appointed on whole time basis.

(3) Selection of chairperson and members of Commission - section 9 (A) the chairperson and other members of the Commission shall be appointed by the central government from a panel of names recommended by a selection committee. (B) selection committee consist of the chief justice of India or his nominee and other members such as the secretary in the Ministry of corporate affairs the secretary in the Ministry of law and Justice and two experts of repute who have special knowledge of and professional experience in international trade ,economic, business, commerce, law, finance, accountancy, management, industry, public affair or competition matters including competition law and policy.

(4) Term of office of chairperson and other members - section 10 (A) term of office: the chairperson and every other member shall hold office as such for a term of five years from the date on which he enters upon his office and shall be eligible for re -appointment .however, the chairperson or other members shall not hold office as such after he has attained the age of sixty -five years. (B) filling casual vacancy: a vacancy caused by the resignation or Removal of the chairperson or any other member under section 11 or by death or otherwise shall not hold office as such after he has attained the age of sixty-five years. (C) temporary arrangement: in the event of the occurrence of a vacancy in the office of the chairperson by reason of his death, resignation or otherwise, the senior-most member shall act as the chairperson until the date on which a new chairperson appointed in accordance with the provision of this act to fill such vacancy, enters upon his office.

(5) Resignation and removal of chairperson and other member of CCI (section 11) (A) resignation: it has been provided under section11(1) that the chairperson or any other member may resign his office by notice in writing under his hand addressed to the central government, however, until the chairperson or a member is permitted by the central government to relinquish his office, he will continue to hold his office until the expiry of three month from the date of receipt of such notice. (B) Removal: section 11 (2) provide the circumstances under which the central government may, by order, remove the chairperson or any member from his office.

(6) Restriction on employment of Chairperson and other members – Section 12 which provides that for a period of two years from the date on which the chairperson and other Member ceases to hold office shall not accept any appointment in or connected with the management or administration of any enterprise which has been a party to the proceeding before the commission. This restriction, however, shall not apply to any employment under the central government or a state government or local authority or any corporation established by or under any central, state or provincial act or government company as defined in companies act, 2013.

(7) Salary and terms and conditions of services- section 13 The salary allowance and other terms and conditions of service of the chairman and other member including travel expenses, house rent allowance, conveyance facility, sumptuary allowance and medical facilities shall be such as may be prescribed.

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