Competition Act 2002
-Competition Act 2002 which further amended by amendment act 2007 and 2009, the modified
version on an Act which we earlier use to know by the name of MRTP Act 1969.
-MRTP Act 1969 is repealed by the virtue of section 66 as amended through the act of 2007.
MRTP commission wound up.
-It is business law which control the fair competition in the market. This law prohibits the practice
of price fixing among market players which it termed as enterprise.
-This law ensure that a dominant player should not abuse its dominant position in the market .
-It disallow all the agreements with a are anti competitive in nature.
-It has brought the concept of ‘combination’ where on person who own a competitor enterprise
can not get merger/amalgamation in a way which adversely affect the competition.
-This law constitutes a statutory body competition commission of india (CCI) which is fully
functional from May 2009. CCI has vide powers to enter into the matters of the Act even without
any application to it.
-This act is directly affect to the top management of the company. It assume that the pricing and
trade associations are in knowledge of top management.
-It lays down heavy penalty of the offense under this act. Appellate tribunal is constituted to file
appeal against the order of competition commission.
Objectives of CCI:
i. Anti-Competitive Agreements:
This covers both the horizontal and vertical agreements. It states that four types of horizontal
agreements between enterprises involved in the same industry would be applied.
These agreements are those that:
(i) lead to price fixing;
(ii) limit or control quantities;
(iii) share or divide markets; and
(iv) result in bid-rigging.
ii. Abuse of Dominance:
The Act lists five categories of abuse:
(i) imposing unfair/discriminatory conditions in purchase of sale of goods or services (including
predatory pricing);
(ii) limiting or restricting production, or technical or scientific development;
(iii) denial of market access;
