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5 Anti Competitive Agreement

The Competition Act 2002 prohibits certain anti-competitive agreements and abuse of dominant position. Section 3 specifically prohibits anti-competitive agreements that cause or are likely to cause appreciable adverse effect on competition in India. Such agreements include fixing prices, limiting production/supply, market sharing, bid rigging, and certain vertical restraints like tie-in arrangements, exclusive supply/distribution agreements, and refusal to deal. The Act aims to ensure fair competition and protect consumer interests. It came into force in 2003 and sections were amended in 2007 and 2010.

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Anmol Goswami
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113 views

5 Anti Competitive Agreement

The Competition Act 2002 prohibits certain anti-competitive agreements and abuse of dominant position. Section 3 specifically prohibits anti-competitive agreements that cause or are likely to cause appreciable adverse effect on competition in India. Such agreements include fixing prices, limiting production/supply, market sharing, bid rigging, and certain vertical restraints like tie-in arrangements, exclusive supply/distribution agreements, and refusal to deal. The Act aims to ensure fair competition and protect consumer interests. It came into force in 2003 and sections were amended in 2007 and 2010.

Uploaded by

Anmol Goswami
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Competition Act, 2002 - Section 3 -

PROHIBITION OF CERTAIN
AGREEMENTS
Came into force on - 13th January, 2003
Competition (Amendment) Act, 2007.
SS 3, 4 – on 20/9/2010
Combinations- 1/6/2011
Objects of the Act
1. Ensure fair competition - Prohibiting
trade practice causing appreciable
adverse effect on the competition
2. Promote & sustain competition in
markets
3. Protect the interest of consumers
4. Ensure freedom of trade on by other’s
in the market.
Prohibition of Agreements - Anti - Competitive Agreements (Sec. 3)
No enterprise
Assn. of enterprises Shall enter into
Person – Production any agreement in
Assn. of persons respect of
Control of
Goods Supply
Provision of
Services
Sec 3
Acquisition Distribution

Which causes or
(2) Any agreement Storage is likely to cause
- Shall be void an AAEC within
India
Sec. 3 Cont….
(3) Any agreement entered into…..
Practice carried on, or decision taken by,
Any Assn. of enterprises/of persons,
including cartels -
Engaged in identical or similar trade of
goods or provision of services -
WHICH -
(a) directly or indirectly Determines Purchase or Sale
Prices;
(b) Limits or Controls Production, Supply, Markets, Technical
Development, Investment or Provision of Services;

(c) Shares the market - Source of Production -


Provision of services -
By way of allocation of geographical area of
market
Type of goods or services, or
No. of customers in the market or
Any other similar way;

(d) directly or indirectly results in bid


rigging or collusive bidding,
• P… Nothing contained in this SS shall apply to
any JV agreement - If such agreement increases
efficiency in Production, supply, distribution,
storage, acquisition or control of goods or
provision of services.
• Explanation - Bid Rigging – Means
• Any agreement - Engaged in Identical/Similar
Production/Trading of Goods/Provision of
Services, which has –
• The Effect of Eliminating/Reducing Competition
for bids or adversely affecting or manipulating
the process for bidding.
Any agreement - At different stages or levels of the
production chain in different markets, in respect of
production, supply, distribution, storage, sale or
price of, or trade in goods or provision of services
Including -

Exclusive Exclusive
Tie-in Supply Distribution Refusal Resale Price
Arrangement Maintenance
Agreement Agreement To Deal

Shall be an agreement in contravention of SS (1) if


such agreement causes or is likely to cause an
AAEC
• TELCO v Registrar of RTP
• Principle of Rule of Reason

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