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STUDY ON ANTIDUMPING AND COMPETITION LAW (FINAL · PDF file Competition Commission of India Study on Antidumping and Competition Law Economic Laws Practice New Delhi Mumbai Ahmedabad

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  • STUDY ON ANTIDUMPING AND COMPETITION LAW

    (FINAL REPORT)

    SUBMITTED TO

    THE COMPETITION COMMISSION OF INDIA

    NEW DELHI.

    SUBMITTED BY

    ECONOMIC LAWS PRACTICE

    NEW DELHI, MUMBAI, AHMEDABAD & PUNE

  • Competition Commission of India Study on Antidumping and Competition Law

    Economic Laws Practice New Delhi ■ Mumbai ■ Ahmedabad ■ Pune

    ii

    TABLE OF CONTENTS

    Executive Summary: Study on Antidumping and Competition Law ........................................v 1. Introduction:..................................................................................................................v 2. Objectives of the Study:...............................................................................................v 3. Methodology: ...............................................................................................................vi 4. Findings of the Study:.................................................................................................vi

    a. Objectives of Antidumping and Competition Law:..........................................................vi b. Overlaps between the Objectives of Antidumping and Competition Law:....................viii c. Conduct Sought to be Addressed by Antidumping and Competition Law:...................viii d. Overlaps in the Manner in which Antidumping and Competition Law Address the Issue of Price Discrimination: .........................................................................................................................ix e. Predatory Pricing and ‘Dumping’- the Distinctions: ........................................................ x f. Does Antidumping Law Conflict with Competition Law? ................................................xi g. The Relationship between Substantive Provisions and Rules on Procedures under Antidumping and Competition Law:........................................................................................xii h. Implications of the Antidumping Procedures on Competition in Markets in India with reference to the Competition Act, 2002 ..................................................................................................xii

    5. Antidumping and Competition Provisions in Free Trade Agreements/Regional Trade Agreements .............................................................................................................................xiii 6. Issues for Advocacy for the Competition Commission of India...........................xiii 7. Antidumping and Competition Law: Can They Co-exist or Shall Rules on Antidumping be Replaced by Rules on Competition?...............................................................................xiv

    Chapter I: Antidumping and Competition Law............................................................................1

    1. Introduction: the Interaction between Law and Policy:............................................1 2. An Introduction to Competition Law: .........................................................................2

    i. The Evolution of Competition Laws: ............................................................................... 3 3. An Introduction to Antidumping Law: ........................................................................4

    a. The Evolution of Antidumping Legislation: ..................................................................... 4 4. Interface between Competition Law and Antidumping Law: ...................................5 5. Methodology: ................................................................................................................6 6. Scope of the Study: ......................................................................................................6 7. Scheme of the Report: .................................................................................................7

    Chapter II: Competition Law and Antidumping Law: Mapping the Interface...........................8

    1. Introduction:..................................................................................................................8 2. Objectives of Competition Law and Antidumping Law: ...........................................8

    a. Competition Law: ............................................................................................................ 8 b. Antidumping Law: ......................................................................................................... 10 c. Overlaps between the Objectives of Competition and Antidumping Law:.................... 10

    3. ‘Price Discrimination’ as Understood under Competition and Antidumping Law:11 a. ‘Predatory Pricing’ under Competition Law: ................................................................. 12 b. ‘Predatory Pricing’ as Addressed under Antidumping Law: ......................................... 13

    4. Do Antidumping Rules Result in Anti-competitive Effects? ..................................14 a. Anticompetitive Effects Arising out of Mere Existence of Antidumping laws and their Indiscriminate Usage:............................................................................................................ 18 b. Anticompetitive Effects Arising out of the Manner in which Antidumping Laws are Implemented

    ...................................................................................................................................... 20 Chapter III: Antidumping and Competition Law: The Relationship between Substantive Provisions and Rules on Procedure ..........................................................................................22

    1. Introduction:................................................................................................................22 2. Price Discrimination as Understood under Antidumping and Competition Law:22

    a. Measuring the Degree of Discrimination: ..................................................................... 23

  • Competition Commission of India Study on Antidumping and Competition Law

    Economic Laws Practice New Delhi ■ Mumbai ■ Ahmedabad ■ Pune

    iii

    3. ‘Determination of Dumping’ and the Manner in which It May Influence the Understanding and Examination of ‘Price Discrimination’ under Competition Law: .................................24

    a. Determination of Dumping: ........................................................................................... 24 b. Examining Antidumping Investigation Procedures and their Correlation (if any) with the Understanding on ‘Price Discrimination’ under Competition Law: ........................................ 27 (i) Calculation of Normal Value: ........................................................................................ 27 (ii) Determination of Export Prices: .................................................................................... 30 (iii) Adjustments to Selling Price: ........................................................................................ 31 (iv) Calculation of Dumping Margin/Predatory Pricing:....................................................... 31

    4. Injury Analysis under Antidumping Law via-a-vis Appreciable Adverse Effect on Competition Analysis under Competition Law:....................................................................32

    a. Determination of ‘Injury’ under Antidumping Law:........................................................ 32 b. The Concept of “Appreciable Adverse Effect on Competition”..................................... 34

    5. Remedies against the Practice of ‘Price Discrimination’ Under the Two Laws:..35 6. Extra-territorial Applicability of Antidumping and Competition Law:...................36 7. What are the Judicial Positions with Regard to the Interaction Between Antidumping Law and Competition Law? ....................................................................................................37

    a. India: ............................................................................................................................. 37 b. European Communities (‘EC’): ..................................................................................... 39 c. United States of America: ............................................................................................. 41 d. Conclusion: ................................................................................................................... 41

    Chapter IV: Implications of the Antidumping Procedures on Competition in Markets in India with Reference to the Competition Act, 2002 ..................................................................42

    1. Introduction:................................................................................................................42 2. Can the Determination of ‘Standing’ of ‘Domestic Industry’ affect Competition in India? 43 a. Requirements for Imposition of Antidumping duty and Possibility of Collusion:43

    (i) Standing:....................................................................................................................... 43 (ii) Injury to the Domestic Industry as a Whole: ................................................................. 44

    3. Conclusion: .................................................................................................................45 Chapter V: Antidumping and Competition Provisions in Free Trade Agreements/Regional Trade Agreements..........................................................................................