ASSIGNMENT
LEGAL ENVIRONMENT OF BUSINESS
ON
Cyber Laws Application of Information
Technology Act.
Competition Law in India
SUBMITTED TO: SUBMITTED BY:
Prof. Deepti Kiren Sandeep Patel
MBA 3rd Semester
18BSPDD01C0173
CYBER LAWS APPLICATION OF INFORMATION
TECHNOLOGY ACT.
Cyber law is associated with all the areas of business which have a technological bend. In this
article, we will look at six areas of concern for a cyber law namely, e-commerce, online
contracts, business software patenting, e-taxation, e-governance, and cyber crimes.
The Information Technology Act, 2000 or ITA, 2000 or IT Act, was notified on October 17,
2000. It is the law that deals with cybercrime and electronic commerce in India. In this article,
we will look at the objectives and features of the Information Technology Act, 2000.
Objectives of Cyber Laws in Information Technology
Grant legal recognition to all transactions done via electronic exchange of data or
other electronic means of communication or e-commerce, in place of the earlier paper
based method of communication.
Give legal recognition to digital signatures for the authentication of any information
or matters requiring legal authentication.
Facilitate the electronic filling of documents with Government agencies and also
departments.
Facilitate the electronic storage of data
Give legal sanction and also facilitate the electronic transfer of funds between banks
and financial institutions.
Grant legal recognition to bankers under the Evidence Act, 1891 and the Reserve
Bank of India Act, 1934, for keeping the books of accounts in electronic form.
In this Act it is applicable to-
A negotiable instrument as defined in section 13 of the Negotiable Instrument Act,
1981.
A power of attorney as defined in section 1A of the Powers of Attorney Act. 1882
A trust as defined in section 3 of the Indian Trusts Act, 1882.
A will as defined in clause (h) of section 2 of the Indian Succession Act, 1925
including any other testamentary disposition by whatever name called.
Any contract for the sale or conveyance of immovable property or any interest in such
property.
Any such class of documents or transactions as may be notified by the Central
Government in the Official Gazette.
COMPETITION LAW IN INDIA
Competition is a situation in a market in which firms or sellers independently strive for the
buyers patronage in order to achieve a particular business objectives for example, profits,
sales or market share. It is the foundation of an efficiency working market system. The
process of rivalry between firms striving to gain sales and make profits. In competition
motive is self interest, but outcome mostly beneficial for the society. Competition is not just
an event, but a process that is not automatic and needs to be nurtured.
Economic Reforms of 1991-
1. Post 1991 policy of Liberalization, Privatization and Globalization introduced
2. MRTP 1969 Act was found inadequate to meet the challenges of a modern globalize
economy.
3. Government of India in October 1999 appointed a high level of Committee on
Competition Policy and Law to advice on the competition law in consonance with
international developments.
A new law called Competition Act 2002 has been enacted on 10th September, 2007 by the
Parliament to replace the extant law, MRTP Act 1969. This act provides with the economic
development of the country for the establishment of a commission to prevent practises having
adverse effect on competition to promote and sustain competition in markets to protect the
interests of consumers and to ensure freedom of trade carried on by others participants in
markets in India and for matters connected therewith or incidental thereto.
Objectives of Competition Act, 2002-
To provide for the establishment of a commission to prevent practices having adverse
effect on competition.
To promote and sustain competition in markets in India.
To protect the interests of consumers.
To ensure freedom of trade carried on by the participants in the markets in India and
for related matters.
Main features of Competition Act, 2002-
Anticompetitive practices
Agreements between enterprises at the same stage of production, services etc.
Directly or indirectly determines purchase or sale prices. Limits or controls
production, supply, markets, technical development, investment or provision of
service. Shares the market or source production or provision of services by way of
allocation of geographical area of market or type of goods or services or number
of customers in the market or any other similar way.
Abuse of Dominance
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. No enterprise or group shall abuse its
dominant position. There shall be an abuse of dominant position if an enterprise or
group
(a) Directly or indirectly imposes unfair or discriminatory
(b) Limits or restricts
(c) Indulges in practice or practices resulting in denial of market access
(d) Makes conclusion of contracts subject to acceptance by other parties of
supplementary obligations which by their nature or according to commercial
usage have no connection with the subject of such contracts
(e) Uses its dominant position in one relevant market to enter into or protect other
relevant market
.
Mergers and Acquisitions
In order to establish whether the higher concentration in the market resulting
from the merger will increase the possibility of collusive or unilaterally
harmful behavior, it must first be established as to what the relevant is.
Commission is expected to regulate “Combinations”, i.e. large mergers,
acquisitions etc likely to have appreciable adverse effect on competition.
Competition Advocacy
Aim is to foster conditions that will lead to a more competitive market
structure and business behavior without the direct intervention of the
Competition Law Authority. For promotion of competition advocacy and
creation of awareness about competition issues, the Commission may take
suitable measures to:
- Promote competition advocacy
- Create public awareness
- Impart training about competition
Competition Commission of India (CCI)
The CCI is a statutory body corporate that was established by the government on 14th October
2003. So it is an artificial person that has perpetual succession. The Central Government will
appoint all its six members and the Chairperson forming the Board.
Now the main aim of the CCI is to implement the modern competition laws and philosophy of
the Competition Act, 2002. It ensures that there are no unfair practices in the market that have a
negative impact on healthy competition. This is because healthy competition is good for the
consumers of a market. Monopolistic competition or other unfair practices have an adverse
effect on economic growth.
Objectives of the CCI
Prevent policies and practices which have an adverse effect on constructive competition
in the economy
Promote and help sustain healthy competition in the market
Look after the interest of the consumers
Create awareness and advocate for fair competition practices
And finally, ensure freedom of trade in the market
