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India adopted a new economic order in the early 1990s. This empowered the invisible hands of the market, namely, demand for and supply of goods and services to determine two major outcomes, namely, quantities to be produced/supplied in the economy and prices at which these are to be exchanged. The invisible hands may occasionally malfunction in the presence of information asymmetry, externalities or market power.
We have understood the concepts and some important definition under the Competition Act, 2002. As we have considered the charging provisions of Sections 3 and 4, we have learned that the main object of the act is to promote competition and restrict any activities by any entity or group of entities to restrict competition in the market.
In my earlier article we have understood the basics of the Competition Act, 2002. In this article we are going to understand provisions of Section 4 of the Competition Act, 2002, which deals with the Dominant Enterprises, Dominance and abuse of dominant position the act.
Every law promulgated by any legislature is based on certain reason, belief and welfare of the society. The laws will provide us social security from exploitations, whether it will be physical or social. For development of a society and economy it is essential that there should be free competition among players. Every player in the market will get adequate space and time to participate and put their products or services before the people.
MINISTRY OF CORPORATE AFFAIRS NOTIFICATION New Delhi, the 15th October, 2014 G.S.R. 728(E).—In exercise of the powers conferred by clause (mb) of sub-section (2) of section 63 read with sub-section (2) of Section 53E of the Competition Act, 2002 (12 of 2003), the Central Government hereby makes the following rules to amend the Competition Appellate […]
The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i) dated 27th February, 2008, vide G.S.R. No.111(E) and amended vide G.S.R. No. 156(E), dated 6th March, 2009 and G.S.R. No. 259(E), dated 20th April, 2009.
Amendment to Combination Regulations- 28thMarch 2014 The provisions of the Competition Act, 2002 (“Act”) relating to the regulation of combinations as well as the Combination Regulations have been in force with effect from 1stJune 2011. The Combination Regulations were amended twice on 23rd February 2012 and 4th April 2013, with a view to relax filing […]
Status of cases where penalties have not been paid under Competition Act, 2002 Competition Commission of India(CCI) has decided to take suitable and appropriate steps to recover penalties from such parties that have not paid the penalties imposed by the Commission on them under Competition Act, 2002. CCI has released a list of the cases […]
We do not see any justification to hold that there was any breach of any of the provisions under Section 4 of the Act. Similarly, we cannot accept the argument of Shri Sharma that AAI was a dominant purchaser and had abused its dominance. In fact for the purposes of deciding the dominance, we would have to take into consideration both the product market as well as geographical market.
Competition can be defined as a process wherein cost efficient production is achieved in a structure having reasonable number of players (producers and consumers) with simple entry and exit procedures and where exists a close substitution between products of different players in a given industry.
