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IS A DYNAMIC CONCEPT
IS AN AMALGAM OF FACTORS THAT
STIMULATE ECONOMIC RIVALRY
FOUR COMPARTMENTS
VERTICAL RESTRAINTS :
TIE-IN ARRANGEMENTS
EXCLUSIVE SUPPLIES EXCLUSIVE DISTRIBUTION REFUSAL TO DEAL RESALE PRICE MAINTENANCE
SUPPLY,
ABUSE OF DOMINANCE
DOMINANCE NOT LINKED TO ANY ARITHMETIC FIGURE OF MARKET SHARE DOMINANCE MEANS A POSITION OF STRENGTH ENABLING AN ENTERPRISE TO OPERATE INDEPENDENTLY OF COMPETITIVE PRESSURE AND TO APPRECIABLY AFFECT THE RELEVANT MARKET,COMPETITION AND CONSUMERS. ABUSE OF DOMINANCE ARISES IF AN ENTERPRISE IMPOSES UNFAIR /DISCRIMINATORY PURCHASE OR SALE PRICES (INCLUDING PREDATORY PRICES) LIMITS PRODUCTION,MARKETS OR TECHNICAL DEVELOPMENT DENIES MARKET ACCESS CONCLUDES CONTRACTS SUBJECT TO OBLIGATIONS HAVING NO CONNECTION WITH THE SUBJECT OF THE CONTRACTS. USES DOMINANCE TO MOVE INTO OR PROTECT OTHER MARKETS RELEVANT MARKET = RELEVANT PRODUCT MARKET + RELEVANT GEOGRAPHIC MARKET
COMBINATIONS
MERGERS/AMALGAMATIONS
PEJORATIVE EFFECTS
1. 2. 3. 4. 5. REDUCTION IN NUMBER OF PLAYERS ACQUISITION OF ENORMOUS ECONOMIC STRENGTH DISCOURAGEMENT OF NEW ENTRANTS DICTATION OF PRICES DOMINANCE
COMPETITION ADVOCACY
THE COMPETITION COMMISSION OF INDIA IS ENABLED TO PARTICIPATE IN THE FORMULATION OF POLICIES AND REVIEWING OF POLICIES RELATING TO COMPETITION AT THE INSTANCE OF THE GOVERNMENT IS REQUIRED TO CREATE COMPETITION CULTURE IS REQUIRED TO ACT AS COMPETITION ADVOCATE
EXEMPTIONS
GOVERNMENT BY NOTIFICATION MAY EXEMPT FROM THE COMPETITION LAW
A B. C. ANY CLASS OF ENTERPRISES IN THE INTEREST OF NATIONAL SECURITY/PUBLIC INTEREST. ANY PRACTICE/AGREEMENT ARISING OUT OF INTERNATIONAL TREATY/AGREEMENT ANY ENTERPRISE PERFORMING A SOVEREIGN FUNCTION ON BEHALF OF GOVERNMENT
COMPRISES : CHAIRPERSON MEMBERS (Max. Ten) SELECTION BY A COLLEGIUM THIS IS TO MINIMISE POLITICISATION OF APPOINTMENTS
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RATIONALE FOR THE COLLEGIUM APPROACH IS TO MINIMISE POLITICISATION OF APPOINTMENTS CHAIRPERSON NEED NOT BE FROM THE JUDICIARY CHAIRPERSON AND MEMBERS FROM FIELDS JUDICIARY, ECONOMICS, LAW, INTERNATIONAL TRADE, BUSINESS, COMMERCE, INDUSTRY, FINANCE, ACCOUTANCY, MANAGEMENT, PUBLIC AFFAIRS, AND ADMINISTRATION EVERY BENCH WILL HAVE A JUDICIAL MEMBER
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SECTION 3(5) OF THE COMPETITION ACT, 2002 EXCLUDES ALL IPRs FROM ITS APPLICABILITY INTELLECTUAL PROPERTY RIGHT CARRIES WITH IT A BUNDLE OF RIGHTS IN THE INTEREST OF CREATIVITY AND INNOVATION ANY CONDITION OR OBLIGATION OUTSIDE THE BUNDLE OF RIGHTS CANNOT BE COUNTENANCED IF IT TRENCHES COMPETITION THE ACT HAS THEREFORE BROUGHT UNDER ITS SURVEILLANCE UNREASONABLE PRACTICES THAT MAY ACCOMPANY THE EXPLOITATION OF IPRs
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THE COMPETITION ACT, 2002 EXTENDS THE CCIs REACH BEYOND THE INDIAN SOIL THE EXTRA TERRITORIAL REACH IS BASED ON EFFECTS DOCTRINE.
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CONCERNS ARTICULATED
1. THE NEW LAW IS DRACONIAN.
SOME COMMENT THAT WTO HAS PRESSURISED INDIA TO ENACT A NEW COMPETITION LAW SOME OTHERS BELIEVE THAT WORLD BANK, IMF AND ADB HAVE INSISTED ON A NEW LAW FOR INDIA THERE ARE SOME WHO BELIEVE THAT SOME POTENTIAL INVESTORS (FDI) WANT INDIA TO HAVE A NEW EFFECTIVE COMPETITION LAW TO PROTECT THEIR INTERESTS THERE ARE SOME WHO BELIEVE THAT SOME PATENT HOLDERS WANT INDIA TO HAVE PROVISIONS IN THE COMPETITION LAW TO PROTECT THEIR INTERESTS
NONE OF THE ABOVE COMMENTS AND BELIEFS IS TRUE OR HAS ANY BASIS INDIA HAS EXERCISED ITS SOVEREIGN RIGHT TO HAVE A NEW MODERN COMPETITION LAW
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NEW LAW
1. BASED ON POST-1991 LPG 2. PREMISED ON BEHAVIOUR/ CONDUCT 3. RESULT ORIENTED 4. CAN BITE (PUNITIVE ) 5. OFFENCES DEFINED EXPLICITLY 6. FROWNS ON ABUSE OF DOMINANCE (NO PERCENTAGE OF MARKET SHARE)
NEW LAW
8. UNFAIR TRADE PRACTICES
ONE WOULD LIKE TO AVOID THE DANGER OF HOLLOW PURISM THAT HAS MADE SO MUCH OF MODERN ECONOMICS UNFIT FOR ACTUAL USE
AMARTYA SEN
INDIAN NOBEL LAUREATE
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