Sunday, 8 December 2019

Unit 5: The Competition Act, 2002

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                                  Unit 5: The Competition Act, 2002




The Competition Act, 2002 extends to the whole of India except the State of Jammu and Kashmir.


It shall come into force on such as the Central Government may, by notification in the Official Gazette, appoint.

India has responded to globalization by opening up its economy, removing controls and resorting to liberalization.


For this it is necessary that the Indian market should prepare itself competition from within the country and outside.


The Monopolistic and Restrictive Trade Practice Act, 1969 became obsolete in certain respects in the light of international economic developments relating more particularly to competition laws.


The Objective of the act is to prevent adverse effect on competition, to promote and sustain competition, to protect interest of c consumers, to ensure freedom of trade carried on by other participants in Indian market, incidental and connected matters.

Corporate Legal Framework
The act prohibits anti-competitive agreements, abuse of dominant position and regulates combination.

Competition Commission of India may inquire into alleged contravention on the receipt of information from person/consumer/trade/association with fees or any reference by Central/State Government or Statutory body.


An appeal can be made to Competition Appellate Tribunal (CAT) within 60 days of CCI orders, thereafter to Supreme Court within 60 days of CAT order.


Sec.

40 provides that any person aggrieved by any decision or order of the Commission may fi le an appeal to the Supreme Court within sixty days from the date of communication of the decision or order of the Commission to him on one or more of the grounds specified in Sec.

100 of the Code of Civil Procedure, 1908.


The accounts of the Commission as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament.


Acquisition: A corporate action in which a company buys most, if not all, of the target company’s ownership stakes in order to assume control of the target fi rm.

Agreement: It includes any arrangement or understanding or action in concert, whether or not, such arrangement, understanding or action is formal or in writing.

Cartel: It includes an association of producers, sellers, distributors, traders or service.

CAT: Competition Appellate Tribunal Merger: The combining of two or more entities into one, through a purchase acquisition or a pooling of interests.

Shares: Shares are the best investment available over a long period of time.

The growth of share prices comfortably out-paces inflation most years because the best share prices represent the growth in earnings of the best companies.

Although the stock market is seen as “high risk” this depends very much on timing and the sort of shares you invest in.

Turnover: Turnover often refers to inventory or accounts receivable  

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