Competition Law

Course Code - Law 112 

Module I
Competition Law in its Back ground

Prof.(Dr). R.L. Koul

Amity Law School , NOIDA

Amity University, Uttar Pradesh
 Module I Competition Law in its Background Weightage
(%)
Basic Concepts–Customer and Consumer; Types of Market- Perfect Market, Monopoly, Oligopoly  
and Monopsony, definition of competition, Constitutional Aspects of Competition Law, Monopolistic  
20%
Trade Practices, Restrictive Trade Practices, Unfair Trade Practice, Need of Competition law, Indian
scenario with an overview of MRTP Act, 1969, International development leading towards the
development competition Law, Competition policy & Its relation with Salient Features of
Competition.
Module II ANTI-COMPETITIVE AGREEMENT
Key Definition- Agreement, Enterprises, Persons, Relevant Market, Consumer, Goods, Services,  
Trade. Anti-Competitive Agreements, Horizontal and Vertical Agreement, Rule of Per se and Reason,  
20%
Factors causing Adverse effect on competition (AAEC) in India, Prohibition of Anti-Competitive
Agreement/ Cartel/ Bid Rigging Price Fixing etc., Introduction to various IP assets, interface between
competition and IPR, Inquiry process in Anti-Competitive Agreements, Exemptions, Penalties

Contents Module III: Regulation of Abuse of Dominant Position

Dominance in the Market - Relevant Market - Appreciable Adverse Effect on Competition in the
Market - Abusive Conducts under the Competition Act, 2002 – Penalties, Prevention of Abuse of
 
20%
Dominance, Inquiry process in Abuse of Dominant Cases; Essential Facilities Doctrine
Module IV: Regulation of Combinations
Combinations: Merger, Acquisition, Amalgamation and Takeover, Different tests for studying the  
impacts of combinations in the market, Regulated and Unregulated Combinations, Procedure and 20%
timelines for filing, Statutory filings relevant for calculation of turnover, Tests to determine the anti-
competitive combinations, Inquiry process in Combination cases, Structural and behavioral remedies
to anti-competitive combinations Regulations, Penalties.
Module V: Competition Commission of India and Appellate Tribunal  
20%
Establishment and Composition, Regulatory role, Duties and power of Competition Commission of
India, Composition ,functions and procedure of Appellate tribunal, interim orders, Extra territoriality
and Penalties, Leniency, Competition Advocacy, Judicial review and its permissible limits
 Three Credit Course of 3 lectures per week
Syllabus is divided in 5 Modules with following weightage-
• Module- I
• Module- II
• Module - III
• Module - IV

1. General • Module- V

Introduction   Thus, the Syllabus Covers the following:

• Academic Aspects including theories, historical Background etc.
• Statutory Framework including the Competition Act ,2002
• Comparative Study preferably with UK & US
• Case Laws from Indian, US & UK Courts /Commissions
• Applied /Practical Exposure as PSD
 Dictionary Webster
Law & its Schools
• Analytical School
• Historical School

2. Competition- • Sociological School

• Pure Theory of Law
Meaning • Realist School

& • Natural Law School; and,

• Others

Application Therefore, Combination of Competition+ Law = Competition Law.

The theory of perfect competition has its roots in late-19th century economic
thought. Léon Walras gave the first rigorous definition of perfect competition and
derived some of its main results. In the 1950s, the theory was further formalized
by Kenneth Arrow and Gérard Debreu.
Whatever be the position , competition Referred is in Relation to given Market
 What is Market in simple terms:
A place where people go to buy and sell things
A Market is a Place where buyers and sellers can meet to facilitate the exchange or transaction of
goods and services
Market is a term used to describe a collection of people who wish to buy a specific product or
services

3. Market
Other well-defined meaning is –
The Sum Total of all the buyers and sellers in the area or region under consideration.

& its Kinds (The Area may be territorial like city , state , country , Region or Globe)
The Market may be a Physical entity, Virtual, Global, Perfect and Imperfect
Kinds of Market:
Available Market- Can also be named as local Market and like
 Market Potential – which is the maximum market size that will buy the goods when subjected
to the greatest marketing action that a company can do. Market potential is therefore the upper
limit for marketplace and sales
Other Markets – Which fall somewhere between the two
 Refer to the Competition Act, 2002
For definitions like –
 
• Relevant Market

4. Statutory • Relevant Geographic Market

• Relevant Product Market
Definition of  

Market In Case of any Dispute ,it is the Statutory definition which matters before Courts /
commission for interpretation and Application . In absence of clarity in statutory
definition , then in that case external aid for interpretation is allowed by making
access to dictionary meanings and/ or authoritative writings .
 Relevant Market: Defined under Section 2(r) of the Act as:
“relevant market” means the market which may be determined by the commission
with reference to the relevant product market or the relevant geographic market or
with reference to both the markets;

5. Study of
Relevant Geographic Market is defined under Section 2(s) of the Act as:
different Market “relevant geographic market” means a market comprising the area in which the
conditions of competition for supply of goods or provision of services or demand of
Definitions Under goods or services are distinctly homogenous and can be distinguished from the
conditions prevailing in the neighbouring areas;

the Competition
Act, 2002
Relevant Product Market is defined under Section 2(t) of the Act as:
“relevant product market” means a market comprising all those products or
services which are regarded as interchangeable or substitutable by the consumer,
by reason of characteristics of the products or services, their prices and intended
use;
 
 Goods as defined under Section 2(i) of the Act:

(i) “goods” means goods as defined in the Sale of Goods Act, 1930 (8 of 1930) and
includes— (A) products manufactured, processed or mined; (B) debentures, stocks
and shares after allotment; (C) in relation to goods supplied, distributed or

6. Competition in controlled in India, goods imported into India;

 

Relation to Goods (u)“service” means service of any description which is made available to potential
users and includes the provision of services in connection with business of any

or Services industrial or commercial matters such as banking, communication, education,

financing, insurance, chit funds, real estate, transport, storage, material treatment,
processing, supply of electrical or other energy, boarding, lodging, entertainment,
amusement, construction, repair, conveying of news or information and
advertising;
 Enterprise:
(h) “enterprise” means a person or a department of the Government, who or which is, or has
been, engaged in any activity, relating to the production, storage, supply, distribution, acquisition
or control of articles or goods, or the provision of services, of any kind, or in investment, or in the
business of acquiring, holding, underwriting or dealing with shares, debentures or other
securities of any other body corporate, either directly or through one or more of its units or

7. Who Produces divisions or subsidiaries, whether such unit or division or subsidiary is located at the same place
where the enterprise is located or at a different place or at different places, but does not include
any activity of the Government relatable to the sovereign functions of the Government including
Goods or Provides all activities carried on by the departments of the Central Government dealing with atomic
energy, currency, defence and space.

Services (3) Explanation.-For the purposes of this clause,—

(a) “activity” includes profession or occupation;

(b) “article” includes a new article and “service” includes a new service;
(c) “unit” or “division”, in relation to an enterprise, includes-
(i) a plant or factory established for the production, storage, supply, distribution, acquisition or
control of any article or goods;
(ii) any branch or office established for the provision of any service
 Under Competition Law that is by Trade Which under the ACT means:

8. Process and (x) “trade” means any trade, business, industry, profession or occupation relating
to the production, supply, distribution, storage or control of goods and includes the
Activity of provision of any services;

Producing Goods &

Providing Services The Term Related to Trade is :

(y) “turnover” includes value of sale of goods or services;

 Consumer Which term is defined under Section 2(f) of the Act :
 
(f) “consumer” means any person who—

9. For Whom (i) buys any goods for a consideration which has been paid or promised or partly
paid and partly promised, or under any system of deferred payment and includes

Production or any user of such goods other than the person who buys such goods for
consideration paid or promised or partly paid or partly promised, or under any

Services are
system of deferred payment when such use is made with the approval of such
person, whether such purchase of goods is for resale or for any commercial
purpose or for personal use;
expected: (ii) hires or avails of any services for a consideration which has been paid or
promised or partly paid and partly promised, or under any system of deferred
payment and includes any beneficiary of such services other than the person who
hires or avails of the services for consideration paid or promised, or partly paid
and partly promised, or under any system of deferred payment, when such services
are availed of with the approval of the first-mentioned person whether such hiring
or availing of services is for any commercial purpose or for personal use;
 From all the preceding deliberations an idea of competition and has been clarified
 
• Market for purposes of competition gets clarified
• The enterprise as per definition has been dealt 
10. Conclusion • Person involved in the process that is Consumer is by now known
 
In next lecture , we may further elaborate Market + Theories and/or Controls etc.
 
THANK YOU