PPT in Company competition in India. 6th semester B.com program, Shaheed Bhagat singh College (University of Delhi) It is totally in Indian ACT" company's.

1. Submitted To: PRESENTATION BY:
Sanjana Kadyan MUKESH SAH,
SHIV SINGH,
ARJUN KANOJIA,
DENESH

2. OUTLINE :
1) Introduction.
2) Objectives Of The Act.
3) Concepts and definition.
4) Prohibition of certain agreements abuse of dominant.
position and regulation of combinations.
5) Competition commission of India.
6) Powers, duties & functions of the commission.

3. Introduction
 Government of India had appointed a committee under the
chairmanship of Shri S.V.S. Raghavan in October, 1999 to
examine the monopolies and restrictive trade practices
Act,1969 for shifting the focus of the law from curbing
monopolies to promoting competition and to suggest a
modern competition law. Based on the recommendations of
Raghavan committee, competition bill, 2001 was introduced
in the Lok Sabha on 6 August, 2001 and was referred to
parliamentary standing committee for its recommendation.
Pursuant to the recommendations of the standing committee,
the competition act, 2002 was enacted.

4. Objectives Of Competition Act :
 To Promoting economic efficiency in both static and dynamic
sense.
 To promote and sustain competitions in markets.
 Facilitating economic liberalization, including privatization.
Deregulation and reduction of external trade barriers.
 Preserving and promoting the sound development of a market
economy.
 To protect the interests of Consumers.
 To ensure freedom of trade carried on by other participants in
markets, in India.

5. Concepts and definitions ( section 2)
Acquisition [ section 2(a)]
It means, directly or indirectly, acquiring or agreeing to acquire-
(1). Shares, voting rights or assets of any enterprise; or
(2).Control over management or control over assets of any
enterprise.
Agreement [ section (b)]
(1). Whether or not, such arrangement or understanding or action is
formal or in writing: or
(2). Whether or not such arrangement, understanding or action is
intended to be enforceable by legal proceedings.
There are two types of agreement horizontal agreement & vertical
agreement.
Cartel [section 2(c)]
It includes an association of producers, sellers, distributors traders
or service – providers who attempt to control production,
distribution, sale or price.

6. Consumer [ section 2(f)]
‘Consumer’ means any person who buy good or hires/avails of any
services for a consideration which has been paid of promised or
partly paid and partly promised.
Goods [ section 2(i)]
goods as define in the sale of goods act, 1930 ( 8 of 1930)
And includes-
(1). Products manufactured, processed or mined;
(2). Debentures, stock and shares after allotment etc.
Person [ section 2 (l)]
(1). an individual; (2).a Hindu undivided family; (3). a firm;
(4). a company; (5). a local authority.

7. Price [ section 2(o)]
In relation to the sale of any goods or to the performance of
any services, includes every valuable consideration, whether
direct of indirect, or deferred.
Service [ section 2 (u)]
Any description which is made available to potential users
and industrial or commercial matters such as banking,
communication, education, real estate, transport, storage, or
information and advertisement.
Trade [section 2(x)]
‘Trade’ means any trade, business, industry, profession or
occupation relating to the production, supply, distribution,
storage or control of goods and includes the provision of any
services.

8. features Of Competition ACT 2002:
1. anti competition agreement.(section 3).
2.PROHIBITION OF Abuse of dominant
position.(section 4).
3. Regulation of combination.(section 5).
4. Competition advocacy.(section 49).

9. anti competition agreement
Section 3 provides that no enterprise or person shall enter
into any agreement in respect of production, supply,
distribution, storage, acquisition or control of goods or
provision of services, which causes or is likely to cause an
appreciable adverse effect on competition within India.
Any agreement entered into between competitors, 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) Directly or indirectly results in bid rigging or collusive
bidding, shall be presumed to have an appreciable
adverse effect on competition.

10. Adverse Effect on Competition
(a). Tie-in agreement.
(b). Exclusive Supply agreement.
(c). Exclusive distribution agreement.
(d). Refusal to deal.
(e). Resale Price maintenance.

11. PROHIBITION OF Abuse of dominant position (section 4)
 A dominant position implies that a company, is so overriding that the
competitors are unable to match its actions or control the prices.
 Sec.4 of the Competition Act prohibits such activities which include:
1) Directly or indirectly imposes unfair or discriminatory
Conditions/Price in purchase or sale of goods or service.
2) Limits or restricts
- production of goods or provision of services or market
thereof,
- technical or scientific development relating to the goods or
services to the prejudice of consumers.
3) Indulges in practices that result in denial of market access in any
manner.
4) Uses its position to enter into relevant market or protect the relevant
market.

12. Regulation OF Combinations
Combination include acquisition of shares, acquiring of
control &mergers n amalgamations. These combinations
can be horizontal type of combination that has very high
potential to thwart competition when compared to other
kinds of combinations. The following cases are :
Acquisition by Large Enterprises & Group.
Acquiring of Enterprise having similar Goods/Services.
Acquiring enterprise having similar Goods/Service by
a Group.
Merger of Enterprises.
Merger in Group company.

13. COMPETITION COMMISSION OF INDIA
 With effect from such date as the Central Government may, by
notification, appoint, there shall be established, for the
purposes of this Act, a Commission to be called the
‘Competition Commission of India’.
The Commission shall be a body corporate by the name
aforesaid having perpetual succession and a common seal with
power, subject to the provisions of this Act, to acquire, hold
and dispose of property, both movable and immovable, and to
contract and shall, by the said name, sue or be sued.
The head office of the Commission shall be at such place as the
Central Government shall decide from time to time.
The Commission may establish offices at other places in India.
- The Competition Act 2002,Sec.7,(1-4)

14. Composition Of The Commission
The Commission has a Chairperson and six members of the
Commission shall be appointed by the Central Government.
The term of office is for five years. (sec.9-11)
 Selection Committee includes Chief Justice of India or his
nominee, Secretary in the Ministry of Corporate Affairs

15. Duties, powers & functions of the commission
Duties:
 Eliminate practices having adverse effect
on competition,
 Promote and sustain competition,
 Protect the interests of the consumers,
 Ensure freedom of trade carried on by
other participants in the market,
 Conduct enquiry into cases of abuse of
dominant position and combinations.

16. Powers & Functions Of the Commission
 Inquiry into certain agreements ( section 19).
 Inquiry whether an Enterprise enjoys dominant position.
 Inquiry into combination by commission ( section 20).
 Power to award compensation (section 34).
 power of commission to regulate its own procedure.
 power to review its own orders ( section 37).
 power to impose lesser penalty.

17. Case study : 1
(Relating to the Dominance abuse and Appellate function)
Relating Yash Raj films and “Son of Sardar
The tassel between Yash Raj films and Ajay Devgan Films
- Case no. 66 of 2012
Informant: Opposite Parties:
-Ajay Devgan Films -Yash Raj films

18. • The informant’s grievance :
Opposite party Yash Raj films released a mega starrer film ’ Ek Tha Tiger’
on 15th August 2012.
Meanwhile, they were also contemplating release of the film ‘Jab Tak
Hain Jaan’ during Diwali.
They have put a condition on single screen and multiplex owners
that if they wanted to exhibit ETT then they would have to
simultaneously agree to exhibit the other film JTHJ.

19.  Claim highlights :
1. Abuse of dominance.
2. Violation of Sec 3 and Sec 4 of the CCI.
3. Informant feared that he will not get enough theatres for his
own film ‘Son of Sardar’.
4. Tie in arrangement and vertical agreements.
 Result of the case :
i. Case dismissed.
ii. CCI did not find any
misgivings on the
opposition’s side.
iii. Fit for closure under section
26 (2) of the act.
 Reasons for Closure :
i. Tie in arrangements are not
violative of Sec. 3, if it does not
cause appreciable adverse effect
on competition of India.
ii. Market cannot be constricted to
EID and Diwali. Market is
considered as a whole throughout
the year.
iii. Sec. 4- domination of market not
defined.

20. Case study : 2
(Relating to the Cartel Formation and Price manipulation)
Advertising Agencies Guild
VS
Indian Broadcasting Foundation & its members
- Case no. 35 of 2013
Informant:
- Advertising Agencies Guild
Opposite Parties:
- Indian Broadcasting
foundation &
its members (IBF)

21. Case Highlights
- Opposite parties were forcing the advertising agencies to agree to
the new mechanism of billing (Gross Billing To Net Billing)
- They collectively boycotted and did not broadcast
advertisements on their Channels for two days viz. 01.05.2013 &
02.05.2013.
- Violation of section 3(3)
 Result of Case
• Case was dismissed.
• IBF wasn't found to be
abusing their dominance.
• The agreement deadline was
increased to one month
 Reasons for Closure
• Billing system has no restriction
under competition Act.
• Competition Act is applicable
only to price fixation, market
sharing collusive bidding etc..,
• The boycotting was pre-
mentioned by the so formed
committee of IBF.

22. CONCLUSION
 CONCLUSION IS NOT PREPARED
 I‘LL SEND IT TOMMOROW