The competition Act, 2002 - Wikipedia The competition Act, 2002 The Competition Act, 2002 An Act to give, keeping in view of the economic development of the country, for the establishment of a Commission to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets, in India, and for matters connected therewith or incidental thereto. Citation Act No. 12 of 2003 Enacted by Parliament of India Date assented to 13 January 2003 Date commenced 31 March 2003 Introduced by Arun Jaitley Repealing legislation The Monopolies and Restrictive Trade Practices Act, 1969 Status : In force The Competition Act, 2002 was enacted by the Parliament of India and governs Indian competition law. It replaced the archaic The Monopolies and Restrictive Trade Practices Act, 1969. Under this legislation, the Competition Commission of India was established to prevent the activities that have an adverse effect on competition in India. This act extends to whole of India except the State of Jammu and Kashmir. It is a tool to implement and enforce competition policy and to prevent and punish anti-competitive business practices by firms and unnecessary Government interference in the market. Competition laws is equally applicable on written as well as oral agreement, arrangements between the enterprises or persons. The Competition Act, 2002 was amended by the Competition ( Amendment ) Act, 2007 and again by the Competition ( Amendment ) Act, 2009. This is an act to establish a commission, protect the interest of the consumers and ensure freedom of trade in markets in India - To prohibit the agreements or practices that restricts free trading and also the competition between two business entities, To ban the abusive situation of the market monopoly, To provide the opportunity to the entrepreneur for the competition in the market, To have the international support and enforcement network across the world, To prevent from anti-competition practices and to promote a fair and healthy competition in the market. Contents 1 History 2 Definitions 3 Salient Features 3.1 Anti Agreements 3.2 Types of agreement 3.3 Abuse of dominant position 3.4 Combinations 3.5 Competition Commission of India 3.6 Review of orders of Commission 3.7 Appeal 3.8 Penalty 4 See also 5 References 6 External links History The Government of India in April 1964 appointed the Monopolies Inquiry Commission under the Chairmanship of Justice K. C Das Gupta, a judge of the Supreme Court, to inquire into the extent and effect of concentration of economic power in private hands and prevalence of monopolistic and restrictive trade practices in important sectors of economic activity other than agriculture. To regulate advertising, in 1984, Parliament inserted a chapter on unfair trade practices in the Monopolies and Restrictive Trade Practices Act, 1969. The Monopolies and Restrictive Trade Practices Commission was constituted in the year 1970. The Monopolies and Restrictive Trade Practices Act, 1969 had its genesis in the Directive Principles of State Policy embodied in the Constitution of India. It received the assent of the President of India on 27 December, 1969. The Monopolies and Restrictive Trade Practices Act was intended to curb the rise of concentration of wealth in a few hands and of monopolistic practices. It was repealed on September 2009. The Act has been succeeded by The Competition Act, 2002. The Competition Bill, 2001 was introduced in Lok Sabha by Finance Minister Arun Jaitley on 6 August 2001. 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 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. Salient features Anti agreements Enterprises, persons or associations of enterprises or persons, including cartels, shall not enter into agreements 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 agreements would consequently be considered void. Agreements which would be considered to have an appreciable adverse impact would be those agreements 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 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 enterprises. Horizontal agreement is presumed to be illegal agreement but rule of reasons would be applicable for vertical agreements. Abuse of dominant position There shall be an abuse of dominant position if an enterprise imposes directly or indirectly unfair or discriminatory conditions in purchase or sale of goods or services or restricts production or technical development or create hindrance in entry of new operators to the prejudice of consumers. The provisions relating to abuse of dominant position require determination of dominance in the relevant market. Combinations The Act is designed to regulate the operation and activities of combinations, a term, which contemplates acquisition, mergers or amalgamations. Combination that exceeds the threshold limits specified in the Act in terms of assets or turnover, which causes or is likely to cause adverse impact on competition within the relevant market in India, can be scrutinized by the Commission. Competition Commission of India Competition Commission of India is a body corporate and independent entity possessing a common seal with the power to enter into contracts and to sue in its name. It is to consist of a chairperson, who is to be assisted by a minimum of two, and a maximum of six, other members. bhart ma It is the duty of the Commission to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade in the markets of India. The Commission is also required to give opinion on competition issues on a reference received from a statutory authority established under any law and to undertake competition advocacy, create public awareness and impart training on competition issues. Commission has the power to inquire into unfair agreements or abuse of dominant position or combinations taking place outside India but having adverse effect on competition in India, if any of the circumstances exists : An agreement has been executed outside India Any contracting party resides outside India Any enterprise abusing dominant position is outside India A combination has been established outside India A party to a combination is located abroad. Any other matter or practice or action arising out of such agreement or dominant position or combination is outside India. To deal with cross border issues, Commission is empowered to enter into any Memorandum of Understanding or arrangement with any foreign agency of any foreign country with the prior approval of Central Government. Review of orders of Commission Any person aggrieved by an order of the Commission can apply to the Commission for review of its order within thirty days from the date of the order. Commission may entertain a review application after the expiry of thirty days, if it is satisfied that the applicant was prevented by sufficient cause from preferring the application in time. No order shall be modified or set aside without giving an opportunity of being heard to the person in whose favour the order is given and the Director General where he was a party to the proceedings. Appeal Any person aggrieved by any decision or order of the Commission may file an appeal to the Supreme Court within sixty days from the date of communication of the decision or order of the Commission. No appeal shall lie against any decision or order of the Commission made with the consent of the parties. Penalty If any person fails to comply with the orders or directions of the Commission shall be punishable with fine which may extend to ₹ 1 lakh for each day during which such non compliance occurs, subject to a maximum of ₹ 10 crore. If any person does not comply with the orders or directions issued, or fails to pay the fine imposed under this section, he shall be punishable with imprisonment for a term which will extend to three years, or with fine which may extend to ₹ 25 crores or with both. Section 44 provides that if any person, being a party to a combination makes a statement which is false in any material particular or knowing it to be false or omits to state any material particular knowing it to be material, such person shall be liable to a penalty which shall not be less than ₹ 50 lakhs but which may extend to ₹ 1 crore. See also National Competition Policy ( India ) Competition Commission of India Law portal References Jump up ^ `` Sub-section 1 of Section 7 of Competition Act 2002 ''. Indian Kanoon. Retrieved 3 November 2015. Jump up ^ `` CCI will be in full operation next year ''. The Hindu. 2007 - 09 - 11. ISSN 0971 - 751X. Retrieved 2015 - 11 - 19. Jump up ^ The Monopolies and Restrictive Trade Practices Act, 1969. Georg Thieme Verlag. Jump up ^ Pathak, Akhileshwar ( 2016 - 04 - 18 ). `` New law, statutory body imperative to foster fair trade practices in India ''. Livemint. Jump up ^ Singh, Ravi Karan ( 1989 - 01 - 01 ). Restrictive Trade Practices and Public Interest. Mittal Publications. ISBN 9788170991724. Jump up ^ `` THE MONOPOLIES AND RESTRICTIVE TRADE PRACTICES ACT, 1969 POLICY, PROVISIONS AND PERFORMANCE '' ( PDF ). Jump up ^ The Monopolies and Restrictive Trade Practices Act, 1969. Georg Thieme Verlag. Jump up ^ Legal Aspects of Business. Tata McGraw - Hill Education. 2013 - 01 - 01. ISBN 9781259026584. Jump up ^ `` Competition Bill introduced '', The Hindu, 6 August 2001 Jump up ^ `` Section 2 ( a ) of Competition Act 2002 ''. Indian Kanoon. Jump up ^ `` Section 2 ( c ) of Competition Act 2002 ''. Indian Kanoon. Jump up ^ `` Section 4 ( explanation ) of Competition Act 2002 ''. Indian Kanoon. Jump up ^ `` Section 4 ( explanation ) of Competition Act 2002 ''. Indian Kanoon. Jump up ^ `` Section 4 of Competition Act 2002 ''. Indian Kanoon. Jump up ^ `` About CCI Competition Commission of India ''. www.cci.gov.in. Retrieved 2015 - 11 - 19. Jump up ^ `` Organogram Competition Commission of India ''. www.cci.gov.in. Retrieved 2015 - 11 - 19. Jump up ^ `` ` CCI to act as nodal agency to check anti-competitive practices ' ''. The Hindu Business Line. Retrieved 2015 - 11 - 19. Jump up ^ `` Section 37 of Competition Act 2002 ''. Indian Kanoon. Jump up ^ `` Section 40 of Competition Act 2002 ''. Indian Kanoon. Jump up ^ `` Section 43 of Competition Act 2002 ''. Indian Kanoon. External links Competition Commission of India Competition Appellate Tribunal The Competition Bill, 2001 The Competition ( Amendment ) Bill, 2006 The Competition ( Amendment ) Bill, 2007 The Competition ( Amendment ) Bill, 2009 Competition Appellate Tribunal National Competition Council Competition law by country Americas United States Asia China India Japan Europe European Union Ireland United Kingdom Russia Oceania Australia Indian legislation Constitution of India ( amendments ) Indian Penal Code Code of Criminal Procedure, 1973 Acts of the Parliament Ordinance In Force Consumer Real Estate ( Regulation and Development ) Act, 2016 Consumer Protection Act, 1986 Essential Commodities Act Essential Services Maintenance Act Corruption Benami Transactions ( Prohibition ) Act, 1988 Black Money ( Undisclosed Foreign Income and Assets ) and Imposition of Tax Act, 2015 Prevention of Corruption Act, 1988 The Lokpal and Lokayuktas Act, 2013 Mines and Minerals ( Development and Regulation ) Act, 1957 Prevention of Money Laundering Act, 2002 Whistle Blowers Protection Act, 2011 Criminal Armed Forces ( Special Powers ) Act Armed Forces Tribunal Act, 2007 Arms Act, 1959 Army Act, 1950 Criminal Law ( Amendment ) Act, 2013 Cigarettes and Other Tobacco Products Act Indian Evidence Act Juvenile Justice ( Care and Protection of Children ) Act, 2015 National Security Act ( India ) Protection of Women from Domestic Violence Act, 2005 Scheduled Caste and Scheduled Tribe ( Prevention of Atrocities ) Act, 1989 Education Indian Institutes of Management Act, 2017 Institutes of Technology Act, 1961 National Institutes of Technology Act, 2007 Right of Children to Free and Compulsory Education Act, 2009 University Grants Commission Act, 1956 Environment Air ( Prevention and Control of Pollution ) Act Biological Diversity Act, 2002 CAMPA bill Environment Protection Act, 1986 Indian Forest Act, 1927 National Green Tribunal Act Prevention of Cruelty to Animals Act Protection of Plant Varieties and Farmers ' Rights Act, 2001 Wildlife Protection Act, 1972 Financial Aadhaar ( Targeted Delivery of Financial and other Subsidies, benefits and services ) Act, 2016 Banking Regulation Act, 1949 Conservation of Foreign Exchange and Prevention of Smuggling Activities Act Depositories Act The Electricity Act, 2003 Expenditure Tax Act, 1987 Finance Act ( India ) Fiscal Responsibility and Budget Management Act, 2003 Foreign Contribution ( Regulation ) Act, 2010 Foreign Exchange Management Act Geographical Indications of Goods ( Registration and Protection ) Act, 1999 Government Securities Act, 2006 Indian Contract Act, 1872 Indian Stamp Act, 1899 Insolvency and Bankruptcy Code, 2016 Insurance Act, 1938 Negotiable Instruments Act, 1881 Securities Laws ( Amendment ) Act, 2014 Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 The Competition Act, 2002 The High Denomination Bank Notes ( Demonetisation ) Act, 1978 The Income - tax Act, 1961 Transfer of Property Act 1882 Urban Land ( Ceiling and Regulation ) Act, 1976 Healthcare Central Council of Homoeopathy Act, 1973 Clinical Establishments ( Registration and Regulation ) Act, 2010 Dentist Act Drugs and Cosmetics Act, 1940 Drugs and Magic Remedies ( Objectionable Advertisements ) Act, 1954 Indian Medical Council Act Mental Health Act, 1987 Narcotic Drugs and Psychotropic Substances Act, 1985 Mental Health Care Act, 2017 Labour Bonded Labor System ( Abolition ) Act, 1976 Factories Act, 1948, India Industrial Disputes Act, 1947 Interstate Migrant Workmen Act 1979 Maternity Benefit ( Amendment ) Act, 2017 Minimum Wages Act 1948 National Rural Employment Guarantee Act, 2005 Sexual Harassment of Women at Workplace ( Prevention, Prohibition and Redressal ) Act, 2013 Unorganised Workers ' Social Security Act 2008 Personal Hindu Adoptions and Maintenance Act ( 1956 ) Majority Act ( India ) Hindu Minority and Guardianship Act Hindu Succession Act, 1956 Special Marriage Act, 1954 The Hindu Marriage Act, 1955 The Indian Christian Marriage Act, 1872 The Muslim Women ( Protection of Rights on Divorce ) Act 1986 Social Rights of Persons with Disabilities Act, 2016 Child Labour ( Prohibition and Regulation ) Act Indecent Representation of Women ( Prohibition ) Act National Food Security Act, 2013 Pre-Conception and Pre-Natal Diagnostic Techniques Act, 1994 The Prohibition of Child Marriage Act, 2006 The Scheduled Tribes and Other Traditional Forest Dwellers ( Recognition of Forest Rights ) Act, 2006 Street Vendors Act, 2014 State Laws Anti-Superstition and Black Magic Act The Bombay Prohibition Act, 1949 Bombay Prohibition ( Gujarat Amendment ) 2009 Chhattisgarh Food Security Act, 2012 Maharashtra Control of Organised Crime Act The Gujarat Local Authorities Laws ( Amendment ) Bill, 2009 Puducherry Prevention of Anti-Social Activities Act State Reorganisation Andhra Pradesh Reorganisation Act, 2014 Bihar Reorganisation Act, 2000 Madhya Pradesh Reorganisation Act, 2000 Punjab Reorganisation Act, 1966 States Reorganisation Act, 1956 Uttar Pradesh Reorganisation Act, 2000 Terrorism Unlawful Activities ( Prevention ) Act Transport Aircraft Act Motor Vehicles Act, 1988 National Waterways Act, 2016 Inland Vessels Act Metro Railways Act, 1978 Metro Railway Act, 2002 Organisation / Body Chartered Accountants Act, 1949 Companies Act 2013 Gram Nyayalayas Act, 2008 Indian Trusts Act, 1882 Panchayats ( Extension to Scheduled Areas ) Act 1996 Reserve Bank of India Act, 1934 The Indian Partnership Act, 1932 Societies Registration Act, 1860 The Limited Liability Partnership Act, 2008 Repeal Repealing and Amending Act, 2015 Repealing and Amending ( Second ) Act, 2015 Repealing and Amending Act, 2016 Repealing and Amending Act, 2017 Repealing and Amending ( Second ) Act, 2017 Other All India Services Act, 1951 Delimitation Act Enemy Property Act, 1968 Information Technology Act, 2000 Nuclear Liability Act Official Secrets Act ( India ) Representation of the People Act, 1951 Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 Right to Information Act, 2005 State Emblem of India ( Prohibition of Improper Use ) Act, 2005 The Foreigners Act, 1946 Repealed Pre-Independence Age of Consent Act, 1891 Caste Disabilities Removal Act, 1850 Criminal Tribes Act Hindu Widows ' Remarriage Act, 1856 English Education Act 1835 Prevention of Seditious Meetings Act, 1907 Post-Independence Anti-Copying Act, 1992 Foreign Exchange Regulation Act Gift Tax Act, 1958 Illegal Migrants ( Determination by Tribunal ) Act, 1983 Interest Tax Act, 1974 Maintenance of Internal Security Act Prevention of Terrorism Act, 2002 Terrorist and Disruptive Activities ( Prevention ) Act The Gold ( Control ) Act, 1968 Wealth Tax Act, 1957 Bills Proposed Foreign Education Providers Bill, 2013 Geospatial Information Regulation Bill Gujarat Control of Organised Crime Act Marriage Laws Amendment Bill Road Transport and Safety Bill Uniform civil code Lapsed Judges Assets Bill Women 's Reservation Bill Retrieved from `` https://en.wikipedia.org/w/index.php?title=The_Competition_Act,_2002&oldid=842081192 '' Categories : Competition law Acts of the Parliament of India 2002 Vajpayee administration Economic history of India ( 1991 -- present ) Marketing in India Corporate governance in India Hidden categories : Use dmy dates from August 2016 Use Indian English from August 2016 All Wikipedia articles written in Indian English All articles with unsourced statements Articles with unsourced statements from March 2017 Articles created via the Article Wizard Talk Contents About Wikipedia हिन्दी Edit links This page was last edited on 20 May 2018, at 03 : 03 ( UTC ). 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Question: what are the objectives of competition act 2002
Answer: to implement and enforce competition policy and to prevent and punish anti-competitive business practices by firms and unnecessary Government interference in the market