Upload
spriha-tantia
View
224
Download
1
Embed Size (px)
Citation preview
8/12/2019 Competition Act 2012
1/17
COMPETITION ACT 2012
Biswajit-Deevanshu-Vaibhav-Spriha-Lalit-Ashwa
8/12/2019 Competition Act 2012
2/17
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
8/12/2019 Competition Act 2012
3/17
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
8/12/2019 Competition Act 2012
4/17
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
8/12/2019 Competition Act 2012
5/17
MRTP Act-Not Enough
Restrictive Trade Practices Unfair trade Practices
Monopolistic Trade Practices
Post 1991 Economic Reforms
8/12/2019 Competition Act 2012
6/17
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
8/12/2019 Competition Act 2012
7/17
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 .
8/12/2019 Competition Act 2012
8/17
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
8/12/2019 Competition Act 2012
9/17
Competition Act 2012
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.
8/12/2019 Competition Act 2012
10/17
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).
Competition Act 2012
8/12/2019 Competition Act 2012
11/17
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.
Competition Act 2012
8/12/2019 Competition Act 2012
12/17
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
8/12/2019 Competition Act 2012
13/17
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
8/12/2019 Competition Act 2012
14/17
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.)
8/12/2019 Competition Act 2012
15/17
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.)
8/12/2019 Competition Act 2012
16/17
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
8/12/2019 Competition Act 2012
17/17
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