CCL

What is COMPETITION LAW : 

What is COMPETITION LAW Prohibiting agreements or practices that restrict free trading and competition between business. Banning abusive behavior by a firm dominating a market, or anti-competitive practices that tend to lead to such a dominant position. Practices controlled in this way may include predatory pricing, tying, price gouging, refusal to deal, and many others. Supervising the mergers and acquisitions of large corporations, including some joint ventures. Transactions that are considered to threaten the competitive process can be prohibited altogether, or approved subject to "remedies" such as an obligation to divest part of the merged business or to offer licenses or access to facilities to enable other businesses to continue competing

What is Competition in Market : 

What is Competition in Market •  In common parlance, competition in the market means sellers striving independently for buyers’ patronage to maximize profit (or other business objectives). •  A buyer prefers to buy a product at a price that maximizes his benefits whereas the seller prefers to sell the product at a price that maximizes his profit.

Why do we need competition in the market : 

Why do we need competition in the market Competition makes enterprises more efficient and offers wider choice to consumers at lower prices. This ensures optimum utilization of available resources. It also enhances consumer welfare since consumers can buy more of better quality products at lower prices. Fair competition is beneficial for the consumers, producers / sellers and finally for the whole society since it induces economic growth.

What is meant by unfair competition : 

What is meant by unfair competition Unfair competition means adoption of practices such as collusive price fixing, deliberate reduction in output in order to increase prices, creation of barriers to entry, allocation of markets, tie-up sale , predatory pricing and discriminatory pricing.

When was the competition law enacted in India : 

When was the competition law enacted in India •   The Monopolies & Restrictive Trade Practices Act, 1969 is the first enactment to deal with competition issues and came into effect on 1st June 1970. •   The Government appointed a committee in October 1999 to examine the existing MRTP Act for shifting the focus of the law from curbing monopolies to promoting competition and to suggest a modern competition law. Pursuant to the recommendations of this committee, the Competition Act, 2002, was enacted on 13th January 2003. •   It provides for different notifications for making different provisions of the Act effective including repeal of MRTP Act and dissolution of the MRTP Commission.

What are the objectives of the Competition Act : 

What are the objectives of the Competition Act The objectives of the Competition Act are to prevent anti-competitive practices, promote and sustain competition, protect the interests of the consumers and ensure freedom of trade.

What is an anti-competitive agreement : 

What is an anti-competitive agreement An anti-competitive agreement is an agreement having appreciable adverse effect on competition. Anti-competitive agreements include:- agreement to limit production & supply  agreement to allocate markets agreement to fix price bid rigging or collusive bidding conditional purchase/sale (tie-in arrangement) exclusive supply/distribution arrangement resale price maintenance refusal to deal