Competition Act, 2002 of India
Competition Act, 2002 of India
Competition Act, 2002 of India
ABRAHAM LINCOLN
Competition Act seeks to modernize competition
regime
OBJECTIVES
• Exercise of dominance if it
falls amongst ‘Abuses’, is
only frowned upon
(e) uses its dominant position in one relevant market to enter into,
or protect, other relevant market.
“Dominant position" means a position of strength, enjoyed by an enterprise, in the
relevant market, in India, which enables it to—
(i) operate independently of competitive forces prevailing in the relevant
market; or
(ii) affect its competitors or consumers or the relevant market in its favour.
(b) "predatory price" means the sale of goods or provision of services, at a price
which is below the cost, as may be determined by regulations, of production of
the goods or provision of services, with a view to reduce competition or eliminate
the competitors.
Sec 5. Regulation of combinations
(ii) the group, to which the enterprise whose control, shares, assets or
voting rights have been acquired or are being acquired, would belong
after the acquisition, jointly have or would jointly have,—
(A)either in India, the assets of the value of more than rupees four
thousand crores or turnover more than rupees twelve thousand
crores; or
(B) In India or outside India, in aggregate, the assets of the value
of more than two billion US dollars, including at least rupees
five hundred crores in India, or turnover more than six billion
US dollars, including at least rupees fifteen hundred crores in India, or
(b) acquiring of control by a person over an enterprise when such
person has already direct or indirect control over another enterprise
engaged in production, distribution or trading of a similar or identical or
substitutable goods or provision of a similar or identical or substitutable
service, if—
(i) the enterprise over which control has been acquired along with the
enterprise over which the acquirer already has direct or indirect control
jointly have,—
(A) Either in India, the assets of the value of more than rupees one
thousand crores or turnover more than rupees three thousand crores;
or
(B) In India or outside India, in aggregate, the assets of the value of
more than five hundred million US dollars, including at least rupees five
hundred crores in India, or turnover more
than fifteen hundred million US dollars, including at least rupees fifteen
hundred crores in India; or
(ii) the group, to which enterprise whose control has been
acquired, or is being acquired, would belong after the
acquisition, jointly have or would jointly have,—
(A) either in India, the assets of the value of more than rupees one
thousand crores or turnover more than rupees three thousand crores;
or
(B) In India or outside India, in aggregate, the assets of the value of
more than five hundred million US dollars, including at least rupees
five hundred crores in India, or turnover more than fifteen hundred
million US dollars, including at least rupees fifteen hundred crores in
India; or
(ii) the group, to which the enterprise remaining after the merger or
the enterprise created as a result of the amalgamation, would belong
after the merger or the amalgamation, as the case may be, have or
would have,—
(A) Either in India, the assets of the value of more than rupees
four-thousand crores or turnover more than rupees twelve thousand
crores; or
(B) In India or outside India, in aggregate, the assets of the value of
more than two billion US dollars, including at least rupees five
hundred crores in India, or turnover more than six billion US dollars,
including at least rupees fifteen hundred crores in India.
"group" means two or more enterprises which, directly or
indirectly, are in a position to —
(ii) The provisions of this section shall not apply to share subscription
or financing facility or any acquisition, by a public financial institution,
foreign institutional investor, bank or venture capital fund, pursuant to
any covenant of a loan agreement or investment agreement.
(iii) The public financial institution, foreign institutional
investor, bank or venture capital fund shall, within
seven days from the date of the acquisition, file, in the
form as may be specified by regulations, with the
Commission the details of the acquisition including the
details of control, the circumstances for exercise of
such control and the consequences of default arising
out of such loan agreement or investment agreement,
as the case may be.
Competition Commission of
India
Sec 7. The Central Government shall constitute the
Competition Commission of India.