competition act 2012

8/12/2019 Competition Act 2012

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COMPETITION ACT 2012

Biswajit-Deevanshu-Vaibhav-Spriha-Lalit-Ashwa


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Constitutional Provisions-ownership and control of material resources

-concentration of wealth & means of production

Development Strategy After Independence and its Impact

-strategy of planned economic development

-1956 Resolution-industrialization-Govt intervention and reg

Historical Developmen


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Trigger Causes

-Committee chaired by Mr Hazari-industrial licensing procedur

disproportionate growth of some big business

-Committee set up in 1960-distribution & levels of income-10%

population cornered 40% income

-MIC in 1964-enjoined to enquire extent & effects of concentra

economic power in private hands-prevalence of monopolistic &

trade practices.

Historical Developmen


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the prevention of concentration of economic power to the comdetriment

the control of monopolies

the prohibition of restrictive trade practices

the prohibition of monopolistic trade practices

the prohibition of unfair trade practices

Thrust of MRTP Act


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MRTP Act-Not Enough

Restrictive Trade Practices Unfair trade Practices

Monopolistic Trade Practices

Post 1991 Economic Reforms


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Anti Competitive Agreements

a)Tie in agreement

b)Exclusive supply agreement

c)Exclusive distribution agreement

d)Refusal to deal

e)Resale price maintenance

Abuse of dominance

Cartel,collusion and Price Fixing

Bid Rigging

Predatory Pricing

Solution??-Competition


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The amendment to section 41 of the act allows the directo

seizure , raid or record the statement to facilitate the investiga

as the Director General has the reason to believe that the perso

has omitted or failed or would fail or would alter ,manipulat

the document or information.

Such power can only be exercised with prior permission from

The time period for which any document or information se

retained by the director general is now left to his discretion .


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Competition Act 2012

Under section 31, Stand Still Period is reduced.

The time period to pass an order or issue directions witcombination is

210 which is reduced to 180 days.

Abuse of dominant position by an Enterprise or group.

Specifically mentioning two words jointly and singly4(1) of the

act to prohibit the abuse.

In Section 2, turnover is defined as the value of sale o

services. The Bill amends this definition to exclude any tax


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Opportunity of hearing before imposition of penalty

Prior to the imposition of penalty by CCI ,Under Section 27(

,opportunity of hearing must be given to the party.

Appointment of Members of Commission

The procedure for selection and appointment of mem

proposed to

be altered to include the chairperson of the CCI in t

committee for

selecting the committee.

Size of the committee is reduced to 5 from 6.


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Provision of service included in the definition of vertical arrange

Section 3 (4) already deals with the provision of services along

goods.

Different value or assets and turnover for class or classes of enteThe Central Government has been empowered to specify diffe

assets and turnover for any class or classes of enterprises u

5(A).



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Intellectual property rights related exception to anti-competitive

Provisions relating to anti-competitive agreements are def

section 3(5) of the act.

Definition of term Group

The definition of the term 'group' under the Act is a thre

namely (i) voting right test (ii) appointment of director test and/or

of management test under section 5.



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Power to Issue Interim Orders.

Appearance before Commission.

Rectification of Orders.

Execution of Orders of Commission Imposing Monetary Policy.

Power of Central Government to Issue directions andCommission.

Miscellaneous Provisio


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Helps to maintain fair competition in market

Prevents formation of cartels, monopolies

Fair bids during auctions

Regulation of mergers & acquisitions

Power to impose penalty factor

Advantages of Competition Act


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Relatively more autonomy for the competition commission

Proactive & flexible

A faster pace of invention and innovation

a) Consumers:

i) Wider choice of goods, services and suppliers

ii) Better quality and improved value for money.

Advantages (Contd.)


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b) Businesses:

1.Level playing field

2.Redressal against anti competitive practices

3.Competitively priced inputs

4.Greater productivity and ability to compete in global markets.

c) Governments (Central and State):

1.Savings of public money in procurement

2.Enhanced availability of resources for social sector.

Advantages (Contd.)


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Direct search and seizure- faster gathering of evidence

substantial powers to go after cartels

mandatory for the competition panel to decide on corporate merg

acquisitions (M&A) within a stipulated time limit of 180 days

IMPACT OF THE PROPOSED AMENDM


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competition is critical for economic development, and competitio

to protect this competitiveness in the economy.

Maintaining the positive effect of competition in an economy's m

as a safeguard against misuse of economic power.

CONCLUSION

competition act 2012

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