05-03-2013, 12:28 PM
The Competition Act 2002
The Competition.ppt (Size: 323 KB / Downloads: 19)
Competition?
An economic rivalry amongst enterprises to control greater market power.
INTRODUCTION
Restrictive trade practices: A combination of producers of any product joined together to control its production, sale, and price, so as to obtain a Monopoly and restrict competition in any particular industry or commodity. For e.g. forming the cartel, predatory pricing
Section 2© "cartel" includes an association of producers, sellers, distributors, traders
or service providers who, by agreement amongst themselves, limit, control
or attempt to control the production, distribution, sale or price of, or, trade
in goods or provision of services;
Case: Jet Airways -Kingfisher
Objectives
To prevent practices having adverse effect on competition.
To promote & sustain competition in the markets.
To protect the interests of consumers.
Ensure freedom of trade carried on by participants in markets
Predatory Pricing
Predatory pricing refers to a practice of driving rivals out of business of selling at a price below the cost of production.
PP is a commercial strategy by which a dominant firm lowers its price to a level which will ultimately force its rivals out of the market when the latter have been successfully expelled, the company can raise the prices again and reap the rewards
Case: US Microsoft Co
Exclusive refusal to deal
This includes any agreement which restricts person or class of persons to whom good are sold or from goods are bought
A dealer of company complained to the commission that the company was withholding supply of goods to him. In the course of enquiry it was found that on account of delayed payments from dealer the company did so
BATA restraining the small scale producers with whom it entered in to arrangement for buying footwear raw materials prohibits small scale producers from selling additional raw materials to any other party without bata’s approval
Power of Commission
Power grant Interim Relief (Sec 33)
Power to award compensation (Sec 34)
Appearance before commission (Sec 35)
Power to regulate its own procedures (Sec 36)
CCI has same powers has vested in civil court like issue summons, production documents, receive evidence, examination of witness, exparte hearing