Anti Competitive Agreements Under Competition Act 2002

December 3, 2020 in Uncategorized by

An agreement resulting from the resulting business relationship can be considered a child of commerce or commerce. A contractual agreement can be defined as an acceptance of an offer. Agreements that generally have a detrimental effect or that distort or restrict competition are called anti-competitive agreements. In Section 3 of the Competition Act, 2002, anti-competitive agreements are defined as agreements for the production, supply, distribution, storage, purchase and control of goods or services that significantly affect competition in India. The negative effect on competition is not a specific list of agreements, but on specific economic consequences that can result from very different types of agreements at different times and circumstances. It generally refers to any act detrimental to public interests by excessively limiting competition or by excessively impeding good commercial activity. Given this power of the ICC, it becomes essential that parties present in India be aware of the agreements that may fall within the framework of the designation “anti-competitive”. In this newsletter, we will discuss the situations and conditions under which an agreement may become anti-competitive. The Competition Act 2002 was passed by the Indian parliament to create a commission to protect consumer interests and ensure free trade in Indian markets. Prohibition of agreements or practices that restrict free trade and competition between two companies, To prohibit the abusive situation of market monopoly, To offer the operator the opportunity to compete in the market, to have the international network of support and enforcement worldwide, prevent anti-competitive practices and promote fair and healthy competition in the market. But before the Competition Act, there was the MRTP Act, The Monopolies and Restrictive Trade Practices Act, 1969, which ensure the concentration of economic power in the hands of a few empires. The act was intended to prohibit monopolistic and restrictive business practices.

It extended to all of India with the exception of Jammu and Kashmir. The objectives of this legislative act were: “To ensure that the functioning of the economic system does not result in a concentration of economic power in the hands of fewer rich people. – to provide for the control of monopolies and to prohibit monopolistic practices. Difference between the MRTP Act and the Competition Act:- 1. The MRTP Act is the first competition law in India that covers rules and rules relating to unfair business practices. While the Competition Act is being implemented in order to promote and maintain competition in the economy and to guarantee the freedom to undertake. 2. The law of the MRTP nature is reformist. However, the competition law is criminal in nature. 3. Penalty – No penalty for offences under the MRTP Act. While in the Competition Act, the sanction is in place.

4. The Objective MRTP Act is a controlled monopoly in the market. The purpose of the Competition Act is to promote competition. The agreement of the Competition Act A Section 3[1] stipulates that there are two types of agreements under Act 1. Vertically 2. The horizontal agreement is defined in section 2 (b) of the Competition Act. The agreement covers the production, supply, distribution, storage, purchase or control of goods or services that could significantly affect or create competition in India.