Unit 1

Role of the Foreign Exchange Management Act (FEMA), 1999 in Regulating Foreign Trade
Purpose and Objectives of FEMA
The Foreign Exchange Management Act (FEMA), 1999, was enacted to facilitate external trade and
payments, promote orderly development, and maintain the foreign exchange market in India. FEMA
replaced the earlier Foreign Exchange Regulation Act (FERA), 1973, bringing a more liberalized and
less stringent approach to foreign exchange regulations.
Key Objectives of FEMA:
1. Facilitation of Trade and Payments: Simplifies procedures and enhances efficiency in
foreign trade and payment processes.
2. Promotion of Foreign Exchange Market: Encourages orderly development and
maintenance of the foreign exchange market in India.
3. Liberalization: Provides a liberal framework for foreign exchange transactions, promoting
foreign direct investment (FDI) and international trade.
4. Regulation and Management: Regulates foreign exchange transactions to ensure
compliance with Indian laws and maintain economic stability.
Major Provisions Impacting Foreign Trade:
1. Current Account Transactions: FEMA allows for free transactions on the current account,
subject to reasonable restrictions to conserve foreign exchange.
2. Capital Account Transactions: Regulates transactions that alter assets or liabilities outside
India, ensuring stability in capital flows.
3. Export and Import of Currency: Controls and regulates the import and export of Indian and
foreign currency.
4. FDI and FPI: Facilitates foreign direct investment (FDI) and foreign portfolio investment
(FPI) by providing a clear regulatory framework.
5. Authorized Persons: Designates authorized persons (banks, dealers) to deal in foreign
exchange, ensuring compliance with FEMA provisions.
Differences Between FEMA and FERA
Objectives and Approach:
 FERA (1973):
 Restrictive in nature, aimed at conserving foreign exchange.
 Focused on stringent control and regulation of foreign exchange.
 Penalties for violations were criminal in nature, leading to imprisonment.
 FEMA (1999):
 Liberal and facilitative, aimed at promoting foreign exchange management and trade.
 Emphasizes managing and facilitating foreign exchange rather than controlling it.
  Violations are treated as civil offenses, with penalties focused on fines rather than
imprisonment.
Regulatory Framework:
 FERA:
 Complex and restrictive regulations that deterred foreign investment.
 Required prior approvals for most foreign exchange transactions.
 FEMA:
 Simplified and liberalized procedures encouraging foreign investment and trade.
 Many transactions permitted without prior approval, subject to post-facto reporting.
Enforcement and Penalties:
 FERA:
 Enforcement was strict, with significant powers given to enforcement agencies.
 Criminal penalties included imprisonment for violations.
 FEMA:
 Enforcement is more relaxed, focusing on compliance and facilitation.
 Penalties are primarily monetary fines, and violations are civil offenses.
Administration of Exchange Control
Key Administrative Bodies:
1. Reserve Bank of India (RBI):
 Central regulatory authority for all foreign exchange transactions.
 Issues notifications, guidelines, and circulars to implement FEMA provisions.
 Regulates and oversees authorized dealers and other entities dealing in foreign
exchange.
2. Directorate of Enforcement (ED):
 Enforces compliance with FEMA regulations.
 Investigates violations and imposes penalties for non-compliance.
 Works in conjunction with the RBI to ensure adherence to foreign exchange laws.
Exchange Control Mechanisms:
 Authorized Dealers (ADs):
 Banks and financial institutions authorized by the RBI to deal in foreign exchange.
 Facilitate foreign exchange transactions for businesses and individuals.
 Ensure compliance with FEMA regulations and reporting requirements.
 Current Account and Capital Account Transactions:
  Current Account: Transactions such as trade payments, remittances, and travel
expenses are generally freely permitted.
 Capital Account: Transactions involving capital flows, such as investments, loans,
and asset transfers, are regulated to maintain economic stability.
Adjudicatory Powers Under FEMA
Adjudicating Authorities:
1. Adjudicating Authority:
 Appointed by the central government.
 Responsible for adjudicating cases related to violations of FEMA.
 Powers to summon, enforce attendance, and examine witnesses, akin to civil courts.
2. Appellate Authority:
 Established to hear appeals against orders passed by the Adjudicating Authority.
 Ensures a fair and transparent adjudication process.
3. Special Director (Appeals):
 Hears appeals against the orders of adjudicating authorities below a certain monetary
threshold.
 Provides a secondary level of appeal to ensure justice and compliance.
4. Appellate Tribunal for Foreign Exchange (ATFE):
 Final authority for appeals under FEMA.
 Hears appeals against the orders of the Appellate Authority and Special Director
(Appeals).
 Ensures the finality of decisions and adherence to legal standards.
Powers of the Adjudicating Authorities:
 Summoning Witnesses: Authority to call and examine witnesses.
 Requiring Evidence: Can demand the production of documents and other evidence.
 Enforcement: Powers to enforce attendance and compel compliance with orders.
 Penalties: Imposition of monetary penalties for violations of FEMA provisions.

The Foreign Trade (Development and Regulation) Act, 1992, is an important piece of legislation in
India designed to facilitate and regulate foreign trade. Here’s an overview of its key provisions and
objectives:
Objectives
1. Development and Regulation of Foreign Trade: The primary objective is to enhance the
development and regulation of foreign trade by facilitating imports into and augmenting
exports from India.
 2. Facilitation of Trade: It aims to simplify procedures and promote efficient trade practices.
3. Competitiveness: It seeks to improve the competitiveness of Indian exports.
Key Provisions
1. Power of the Central Government:
 Section 3: The Act empowers the Central Government to make provisions relating to
the development and regulation of foreign trade by issuing orders and notifications.
 Section 5: The government can formulate and announce an Export and Import
(EXIM) Policy. This policy is typically updated periodically.
2. Importer-Exporter Code (IEC):
 Section 7: No person shall make any import or export without an IEC number, except
in cases where it is exempted. The IEC number is a unique 10-digit code granted by
the Directorate General of Foreign Trade (DGFT).
3. DGFT and Policy Formulation:
 The Directorate General of Foreign Trade (DGFT) is the primary body responsible
for the formulation and implementation of the foreign trade policy.
 Section 6: The Act empowers the DGFT to grant, refuse, suspend, or cancel licenses
required for the import and export of goods.
4. Advisory Bodies:
 Section 8: The Central Government may appoint an advisory committee to assist in
policy formulation and implementation.
5. Enforcement and Penalties:
 Section 11: The Act prescribes penalties for contravening any order or policy issued
under it. Penalties can include fines, imprisonment, and suspension or cancellation of
the IEC number.
6. Appeals:
 Section 15: Provides for an appellate procedure for individuals or entities aggrieved
by any decision of the DGFT. Appeals can be made to the Director-General and then
to the Central Government if necessary.
Implementation and Updates
The Foreign Trade Policy (FTP), which is framed under the Act, typically spans five years and is
revised periodically. It outlines various schemes and incentives to promote exports and ensure
efficient import regulation.
Importance
The Foreign Trade (Development and Regulation) Act, 1992, has been crucial in shaping India's trade
landscape. It provides a structured framework for managing and promoting foreign trade, ensuring
that Indian businesses can compete globally while adhering to national and international regulations.
Conclusion
Overall, the Foreign Trade (Development and Regulation) Act, 1992, serves as a foundational piece of
legislation that governs India's foreign trade, aiming to boost the economy by promoting exports and
regulating imports efficiently.

Joint Ventures in India and Foreign Collaborations

Joint Ventures (JVs) in India
A joint venture is a business arrangement where two or more parties agree to pool their resources for a
specific purpose, typically for a project or any other business activity. In India, JVs are a common
method for foreign companies to enter the market due to regulatory advantages, access to local
expertise, and shared risk.
Key Features of Joint Ventures:
1. Equity Participation: Both Indian and foreign partners invest in the venture, sharing profits,
risks, and control.
2. Local Expertise: Foreign companies benefit from the Indian partner’s understanding of local
market conditions, regulatory environment, and business practices.
3. Technology Transfer: Often involves the transfer of technology from the foreign partner to
the Indian partner, enhancing the technical capabilities of the local company.
4. Compliance and Regulations: Must comply with Indian laws and regulations, including
those related to foreign direct investment (FDI).
Types of Joint Ventures in India:
1. Equity Joint Ventures: Both parties hold equity shares in the new entity.
2. Contractual Joint Ventures: Based on a contract without forming a new entity.
Foreign Collaborations
Foreign collaboration involves strategic alliances between Indian and foreign firms, which may not
necessarily involve equity participation. It often includes technology licensing, franchising, or
technical collaboration agreements.
Key Aspects:
1. Technology Licensing: Foreign firms license their technology to Indian firms in exchange for
royalties or fees.
2. Franchising: Foreign companies grant rights to Indian firms to operate under their brand
name and business model.
3. Technical Collaboration: Agreements for technical know-how and assistance.
Transnational Corporations (TNCs) and Multinational Corporations (MNCs)
Concepts
Transnational Corporations (TNCs):
  Operate in multiple countries but do not have a centralized management system.
 Their operations are spread out, and decision-making is decentralized.
 Aim to leverage global efficiencies and adapt to local markets.
Multinational Corporations (MNCs):
 Operate in multiple countries with a more centralized management system.
 Maintain a strong headquarters in the home country, from which they control international
operations.
 Focus on leveraging economies of scale and global brand strength.
UNCTAD Model
The United Nations Conference on Trade and Development (UNCTAD) provides a comprehensive
framework for understanding the role and impact of TNCs and MNCs, particularly in developing
countries.
UNCTAD’s Role and Objectives:
1. Monitoring and Research: Analyzes the activities of TNCs and MNCs, their impact on
development, and their contributions to global trade.
2. Policy Recommendations: Provides guidance to governments on how to maximize the
benefits of foreign investment while minimizing negative impacts.
3. Capacity Building: Assists developing countries in building the institutional and regulatory
capacity to manage foreign investments effectively.
4. Corporate Social Responsibility (CSR): Promotes responsible business practices among
TNCs and MNCs to ensure sustainable development.
Key Focus Areas:
1. Investment Policy Framework: Helps countries develop policies that attract FDI while
safeguarding national interests.
2. Technology and Innovation: Encourages the transfer of technology and fostering innovation
through foreign investments.
3. Sustainable Development Goals (SDGs): Aligns the activities of TNCs and MNCs with the
global SDGs, ensuring their operations contribute positively to social, economic, and
environmental goals.

Foreign Direct Investment (FDI) and Foreign Institutional Investors (FII): Regulatory
Mechanism in India
Foreign Direct Investment (FDI)
Definition and Importance: FDI involves investment by a foreign entity directly into a business or
production in another country. This often includes establishing operations or acquiring tangible assets
such as factories or machinery. FDI is crucial for economic growth as it brings in capital, technology,
and expertise.
Regulatory Mechanism:
 1. Policy Framework:
 Governed by the Foreign Exchange Management Act (FEMA), 1999.
 The Department for Promotion of Industry and Internal Trade (DPIIT) under the
Ministry of Commerce and Industry formulates FDI policy.
2. Routes for FDI:
 Automatic Route: No prior government approval required. Investments in sectors
such as IT, manufacturing, and services often fall under this category.
 Government Route: Prior approval from the government is required. Sectors like
defense, broadcasting, and pharmaceuticals might require such approval.
3. Sectoral Caps and Conditions:
 Different sectors have specific FDI limits (e.g., 100% FDI allowed in the automotive
sector under the automatic route, 74% in the defense sector with government
approval).
 Certain conditions may apply, such as minimum capitalization norms and adherence
to environmental regulations.
4. Approval Authorities:
 Foreign Investment Promotion Board (FIPB): Previously responsible for
approving investments under the government route, now abolished.
 Individual Ministries: Specific ministries handle approvals for respective sectors.
 RBI: The Reserve Bank of India oversees and regulates FDI transactions to ensure
compliance with FEMA.
5. Compliance and Reporting:
 Entities receiving FDI must report to the RBI through the authorized dealer bank.
 Annual returns on foreign liabilities and assets must be filed.
Foreign Institutional Investors (FII)
Definition and Importance: FIIs are investment funds or entities from foreign countries that invest in
the financial markets of another country. In India, FIIs typically invest in equities, debt, and other
market instruments, providing liquidity and market depth.
Regulatory Mechanism:
1. Policy Framework:
 Governed by the Securities and Exchange Board of India (SEBI) under the SEBI
(Foreign Portfolio Investors) Regulations, 2019.
 FIIs are classified as Foreign Portfolio Investors (FPIs) for regulatory purposes.
2. Registration:
 FIIs/FPI must be registered with SEBI to invest in Indian markets.
 Categories of FPIs: Category I (lowest risk), Category II, and Category III (highest
risk).
 3. Investment Limits:
 FIIs/FPI can invest up to 10% of the paid-up capital of an Indian company.
 Aggregate investment limit for FPIs is 24% of the paid-up capital, which can be
increased to the sectoral cap by the company’s board of directors.
4. Compliance and Reporting:
 FPIs must comply with the KYC norms and report their investments to SEBI and
RBI.
 Regular filing of returns and disclosures is required to ensure transparency.
Special Economic Zone (SEZ)
Concept and Importance: Special Economic Zones (SEZs) are designated areas within a country
that have different economic regulations compared to the rest of the country. These zones aim to
attract foreign investment, promote exports, and boost industrial growth by offering incentives and a
conducive business environment.
Key Features:
1. Incentives and Benefits:
 Tax Exemptions: Income tax holiday for a specified period, exemption from GST,
customs duties, and other levies.
 Simplified Procedures: Streamlined customs procedures and a single-window
clearance system.
 Infrastructure Support: Enhanced infrastructure facilities including roads, power,
water, and communication networks.
2. Types of SEZs:
 Multi-product SEZs: Covering multiple industries and sectors.
 Sector-specific SEZs: Focused on a particular industry such as IT, textiles, or
pharmaceuticals.
3. Regulatory Framework:
 Governed by the Special Economic Zones Act, 2005, and SEZ Rules, 2006.
 Administered by the Ministry of Commerce and Industry, with the Board of Approval
(BoA) responsible for approving SEZ proposals.
4. Administration and Compliance:
 Development Commissioners act as the nodal officers for each SEZ.
 Units in SEZs must adhere to specific compliance requirements related to exports,
employment, and environmental standards.

Unit 4
Evolution of Competition Law in India
Pre-1991 Economic Context
Before the liberalization of the Indian economy in 1991, India followed a mixed economy model with
significant government intervention. The Monopolies and Restrictive Trade Practices (MRTP) Act,
1969, was the primary legislation to prevent monopolistic and restrictive trade practices. It aimed to:
 Prevent concentration of economic power.
 Control monopolies.
 Prohibit monopolistic, restrictive, and unfair trade practices.
Post-1991 Economic Reforms
The economic liberalization initiated in 1991 marked a shift towards a more market-driven economy,
necessitating a modern competition law framework. The MRTP Act was considered inadequate for
dealing with the complexities of a liberalized economy.
Establishment of the Competition Act, 2002
To address these inadequacies, the Competition Act, 2002, was enacted, replacing the MRTP Act. The
new legislation was designed to promote and sustain competition in the market, protect the interests of
consumers, and ensure freedom of trade. Key milestones in the evolution of the Competition Act are:
1. 1999: Formation of the Raghavan Committee to recommend a modern competition law
framework.
2. 2002: Enactment of the Competition Act.
3. 2003: Establishment of the Competition Commission of India (CCI) to implement and
enforce the Act.
4. 2009: The CCI became fully functional with enforcement powers.
5. 2011 and beyond: Amendments to strengthen the Act and align it with international best
practices.
Key Differences Between the MRTP Act and the Competition Act
Objectives and Scope
 MRTP Act:
 Focused on preventing monopolistic and restrictive trade practices.
 Aimed at controlling monopolies and preventing economic concentration.
 Limited scope in addressing modern competition issues like abuse of dominance and
anti-competitive agreements.
 Competition Act:
 Aims to promote and sustain competition in markets.
 Focuses on preventing anti-competitive agreements, abuse of dominant position, and
regulating combinations (mergers and acquisitions) that may adversely affect
competition.
 Broader and more comprehensive in addressing various aspects of market
competition.
Institutional Framework
 MRTP Act:
 Administered by the MRTP Commission.
 The Commission had limited investigative powers and relied heavily on complaints
filed by affected parties.
 Competition Act:
 Administered by the Competition Commission of India (CCI).
 The CCI has extensive powers to investigate, enforce, and adjudicate on matters
related to anti-competitive practices.
 Proactive role in market regulation, including the power to conduct market studies
and suo motu investigations.
Enforcement Mechanism
 MRTP Act:
 Relied on lengthy adjudication processes.
 Limited penalties and enforcement measures.
 Focused more on corrective actions rather than preventive measures.
 Competition Act:
 Provides for stringent penalties, including fines up to 10% of a firm's turnover.
 Power to issue cease and desist orders and direct the modification of agreements and
conduct.
 Emphasis on deterrence and compliance through significant financial penalties and
other corrective measures.
Coverage of Anti-competitive Practices
 MRTP Act:
 Addressed monopolistic, restrictive, and unfair trade practices.
 Lacked provisions for modern competition issues like cartelization and abuse of
dominance in a liberalized economy.
 Competition Act:
 Specifically addresses anti-competitive agreements (including cartels), abuse of
dominant position, and regulation of combinations.
 Comprehensive framework to cover the full spectrum of anti-competitive behaviors.

Anti-Competitive Agreements
Anti-competitive agreements are arrangements between businesses that restrict competition in the
market. These agreements can distort market dynamics, harm consumer welfare, and inhibit economic
efficiency. The Competition Act, 2002, specifically addresses and prohibits such agreements.
Types of Anti-Competitive Agreements
1. Horizontal Agreements:
 These are agreements between enterprises operating at the same level of the
production or distribution chain (e.g., agreements between two manufacturers or two
retailers).
 Common Forms:
 Cartels: Agreements between competitors to fix prices, limit production,
allocate markets, or rig bids.
 Price Fixing: Competitors agree on pricing rather than competing against
each other.
 Market Allocation: Competitors divide markets among themselves, such as
by geographical areas or customer segments.
 Output Restriction: Competitors agree to limit the quantity of goods or
services produced or sold.
 Presumption of Harm: Horizontal agreements are generally presumed to cause
appreciable adverse effects on competition (AAEC) and are typically subject to strict
scrutiny and penalties.
2. Vertical Agreements:
 These are agreements between enterprises operating at different levels of the
production or distribution chain (e.g., agreements between a manufacturer and a
distributor).
 Common Forms:
 Exclusive Distribution Agreements: A supplier restricts the distributor from
selling competing products.
 Resale Price Maintenance (RPM): A supplier sets the price at which a
distributor must sell its products, preventing the distributor from determining
the resale price.
 Tying and Bundling: A supplier makes the sale of one product conditional
on the purchase of another product.
 Exclusive Supply Agreements: A buyer agrees to purchase exclusively from
a particular supplier.
 Rule of Reason: Vertical agreements are assessed based on their actual effects on
competition rather than being presumed harmful. They can have pro-competitive
benefits but are scrutinized if they lead to AAEC.
Predatory Pricing
Predatory pricing is a strategy where a dominant firm sets prices significantly below cost with the
intent to eliminate competitors from the market. Once competitors are driven out, the firm raises
prices to recoup losses and achieve monopolistic profits.
Key Elements:
1. Below-Cost Pricing: The dominant firm sells goods or services at prices lower than their
production cost.
2. Intent to Harm Competition: The primary objective is to drive competitors out of the
market.
3. Ability to Recoup Losses: The dominant firm must be able to sustain losses in the short term
and raise prices in the long term to recover these losses.
Regulation:
 The Competition Act, 2002, addresses predatory pricing under the provision related to the
abuse of dominant position (Section 4).
 The Competition Commission of India (CCI) investigates claims of predatory pricing by
assessing:
 The dominant position of the firm in the relevant market.
 The pricing strategy and its impact on competition.
 The intent behind the pricing strategy.

Abuse of Dominance
Definition and Significance
Abuse of dominance occurs when a dominant firm in a market exploits its position to engage in
practices that harm competition and consumer welfare. The Competition Act, 2002, aims to prevent
such behavior to ensure fair competition and market efficiency.
Identifying Dominance
 Relevant Market: The first step is defining the relevant market in terms of the
product/service and the geographical area.
 Market Share: A high market share is a primary indicator of dominance, but other factors
like market structure, barriers to entry, and the firm's economic power are also considered.
Types of Abuse
1. Exploitative Practices:
 Predatory Pricing: Selling below cost to eliminate competitors.
 Excessive Pricing: Charging excessively high prices to exploit consumers.
2. Exclusionary Practices:
 Refusal to Deal: Denying access to essential facilities or inputs.
  Exclusive Agreements: Requiring customers or suppliers to deal only with the
dominant firm.
 Tying and Bundling: Forcing consumers to buy an additional product as a condition
for purchasing a desired product.
 Leveraging Dominance: Using a dominant position in one market to gain advantages
in another market.
Regulatory Framework
 Section 4 of the Competition Act, 2002: Prohibits abuse of dominant position.
 Investigation and Penalties:
 The Competition Commission of India (CCI) investigates complaints of abuse.
 Penalties include fines, cease and desist orders, and directives to modify business
practices.
Combinations and Its Regulations
Definition
Combinations refer to mergers, acquisitions, and amalgamations that involve significant changes in
market structure. While they can create efficiencies and synergies, they also have the potential to
reduce competition by increasing market concentration.
Regulatory Mechanism
1. Thresholds for Notification:
 The Act specifies asset and turnover thresholds for mandatory notification to the CCI.
 Combinations exceeding these thresholds must seek approval before completion.
2. Types of Combinations:
 Mergers: Combining two or more entities into one.
 Acquisitions: One entity acquiring control over another.
 Amalgamations: Combining assets and liabilities of two or more companies to form
a new entity.
3. Review Process:
 Phase I Review: Preliminary assessment to determine if the combination causes or is
likely to cause an appreciable adverse effect on competition (AAEC). If no significant
issues are found, approval is granted.
 Phase II Review: In-depth investigation if potential competition concerns are
identified in Phase I. This includes market analysis, stakeholder inputs, and economic
assessments.
4. Factors Considered:
 Market Concentration: Impact on market share and concentration levels.
 Potential Anti-Competitive Effects: Likelihood of reduced competition, creation of
a monopoly, or increased barriers to entry.
  Efficiencies: Benefits like cost savings, innovation, and enhanced consumer welfare.
 Countervailing Factors: Presence of strong competitors, entry barriers, and potential
for new entrants.
5. Outcomes:
 Approval: If no AAEC is found.
 Conditional Approval: Subject to modifications or commitments from the parties to
mitigate competition concerns.
 Prohibition: If the combination is likely to cause significant harm to competition.
Recent Developments
 The CCI has been increasingly vigilant and proactive in scrutinizing combinations to ensure
they do not harm the competitive landscape.
 Amendments to the Competition Act and CCI regulations periodically update thresholds and
streamline procedures to enhance regulatory efficiency and adaptability.

Powers and Functions of the Competition Commission of India (CCI)

The Competition Commission of India (CCI) is the key regulatory body established to enforce the
Competition Act, 2002. It is tasked with preventing practices that have an adverse effect on
competition, promoting and sustaining competition in markets, protecting the interests of consumers,
and ensuring freedom of trade.
Powers of the CCI
1. Regulatory and Adjudicatory Powers:
 Investigation: The CCI has the power to investigate anti-competitive agreements,
abuse of dominant position, and combinations (mergers and acquisitions).
 Search and Seizure: It can conduct search and seizure operations through the
Director General (DG) of Investigation to gather evidence.
 Imposition of Penalties: The CCI can impose penalties for violations of the
Competition Act, including fines up to 10% of the average turnover of the last three
years or three times the profit made out of the anti-competitive practice.
2. Order Issuing Powers:
 Cease and Desist Orders: It can issue orders to stop anti-competitive practices.
 Modification Orders: It can direct enterprises to modify agreements or behavior to
comply with competition law.
 Approval of Combinations: The CCI approves, conditionally approves, or prohibits
combinations based on their impact on competition.
3. Inquiry and Investigation Powers:
 Suo Motu Inquiry: The CCI can initiate inquiries on its own based on information
received from any source, including the public and media.
  Referral Inquiries: It can conduct inquiries based on references made by the Central
Government, State Governments, or statutory authorities.
Functions of the CCI
1. Enforcement:
 Anti-Competitive Agreements: Investigate and penalize agreements that restrict
competition, such as cartels and bid-rigging.
 Abuse of Dominance: Address practices by dominant firms that harm competition,
such as predatory pricing or exclusive supply agreements.
 Regulation of Combinations: Review mergers and acquisitions to prevent undue
market concentration.
2. Advisory Role:
 Policy Advocacy: Advise the government on policy matters related to competition.
 Market Studies: Conduct market studies and research to understand market
dynamics and the impact of regulations.
3. Advocacy and Awareness:
 Promoting Competition: Raise awareness about the benefits of competition among
stakeholders, including businesses, consumers, and government bodies.
 Training and Workshops: Conduct training programs and workshops to educate
stakeholders on competition law and policy.
4. International Cooperation:
 Collaboration: Collaborate with international competition authorities to promote and
enforce competition law.
 Participation in Global Forums: Participate in international forums to share best
practices and learn from global experiences.
Appellate Authorities
Competition Appellate Tribunal (COMPAT)
 Initially, the Competition Appellate Tribunal (COMPAT) was established to hear appeals
against the orders of the CCI. It could also hear claims for compensation that arose from the
findings of the CCI.
National Company Law Appellate Tribunal (NCLAT)
 In 2017, COMPAT was dissolved, and its functions were transferred to the National Company
Law Appellate Tribunal (NCLAT).
 Powers of NCLAT:
 Hear appeals against the orders of the CCI.
 Review decisions on penalties, directives, and other orders issued by the CCI.
 Provide finality to decisions related to competition law, subject to appeal to the
Supreme Court of India.
Supreme Court of India
 The final appellate authority for competition-related matters. Decisions of the NCLAT can be
challenged in the Supreme Court.
Competition Advocacy
Competition advocacy refers to the activities undertaken by the CCI to promote a competitive
environment through non-enforcement mechanisms. This includes spreading awareness about the
benefits of competition and advising on competition-friendly policies.
Objectives of Competition Advocacy
 Create Awareness: Educate stakeholders about the importance of competition for economic
development.
 Policy Influence: Ensure that government policies and regulations foster a competitive
environment.
 Stakeholder Engagement: Engage with businesses, consumers, academia, and other
stakeholders to promote competition principles.
Activities of Competition Advocacy
1. Public Outreach:
 Conducting seminars, conferences, and workshops.
 Publishing newsletters, reports, and educational materials.
2. Policy Advisory:
 Providing inputs to government departments and regulatory agencies to ensure that
policies do not hinder competition.
 Reviewing existing laws and policies and recommending pro-competitive reforms.
3. Capacity Building:
 Training programs for industry professionals, government officials, and legal
practitioners on competition law and practices.
4. Research and Analysis:
 Undertaking studies and research projects to analyze market conditions and the
impact of regulations on competition.

Development of Competition Laws in the USA

Historical Context
The United States has one of the oldest and most established competition law frameworks, commonly
referred to as antitrust laws. These laws were developed in response to the growing monopolistic
practices and anti-competitive behavior during the late 19th and early 20th centuries.
Key Legislation
1. Sherman Antitrust Act, 1890:
 Purpose: To combat anti-competitive practices, reduce market monopolies, and
restore competition.
 Provisions: Prohibits agreements that restrain trade and bans monopolization and
attempts to monopolize any part of trade or commerce.
2. Clayton Antitrust Act, 1914:
 Purpose: To provide more specific provisions against anti-competitive practices not
clearly addressed by the Sherman Act.
 Provisions: Prohibits price discrimination, exclusive dealing agreements, tying
arrangements, and mergers and acquisitions that may substantially lessen competition
or tend to create a monopoly.
3. Federal Trade Commission Act, 1914:
 Purpose: To establish the Federal Trade Commission (FTC) and promote consumer
protection and the elimination and prevention of anti-competitive business practices.
 Provisions: Outlaws unfair methods of competition and unfair or deceptive acts or
practices in commerce.
Enforcement Agencies
1. Federal Trade Commission (FTC):
 Role: Enforces the FTC Act and shares jurisdiction with the Department of Justice
(DOJ) over antitrust laws.
 Functions: Investigates anti-competitive practices, enforces compliance, and
conducts market studies.
2. Department of Justice (DOJ):
 Antitrust Division: Responsible for enforcing the Sherman Act, Clayton Act, and
other antitrust laws.
 Functions: Prosecutes antitrust cases, reviews mergers and acquisitions, and
promotes competition through litigation and advocacy.
Evolution and Modern Application
 Mid-20th Century: Increased focus on economic analysis and consumer welfare as central
tenets of antitrust enforcement.
 Late 20th Century and Early 21st Century: Emphasis on high-tech industries, digital
markets, and global commerce, reflecting the changing nature of the economy.
  Recent Trends: Greater scrutiny of big tech companies, with calls for more aggressive
antitrust enforcement to address issues related to market dominance, data privacy, and
innovation stifling.
Development of Competition Laws in the UK
Historical Context
Competition law in the United Kingdom has evolved significantly over the past century, influenced by
both domestic needs and the broader European Union (EU) framework.
Key Legislation
1. Monopolies and Restrictive Practices Act, 1948:
 Purpose: To investigate and control monopolistic and restrictive trade practices.
 Provisions: Established the Monopolies and Restrictive Practices Commission to
investigate monopolies and restrictive practices.
2. Restrictive Trade Practices Act, 1956:
 Purpose: To regulate and control restrictive trade agreements.
 Provisions: Required registration of restrictive agreements and prohibited those that
were not in the public interest.
3. Fair Trading Act, 1973:
 Purpose: To strengthen the regulation of monopolies and mergers.
 Provisions: Established the Office of Fair Trading (OFT) and the Competition
Commission to review and investigate mergers and market practices.
4. Competition Act, 1998:
 Purpose: To align UK competition law with EU competition regulations.
 Provisions: Prohibited anti-competitive agreements and abuse of dominant market
positions, modeled after Articles 101 and 102 of the Treaty on the Functioning of the
European Union (TFEU).
5. Enterprise Act, 2002:
 Purpose: To enhance the effectiveness of UK competition law enforcement.
 Provisions: Strengthened merger control, introduced criminal penalties for cartel
behavior, and empowered the OFT to conduct market investigations and impose fines.
Enforcement Agencies
1. Competition and Markets Authority (CMA):
 Role: The primary body responsible for enforcing competition law in the UK since
2014, replacing the OFT and Competition Commission.
 Functions: Investigates mergers, anti-competitive practices, and market conditions;
enforces competition law; and promotes competition through policy work.
2. Sector Regulators:
  Examples: Ofcom (communications), Ofgem (energy), and the Financial Conduct
Authority (financial services).
 Functions: Work alongside the CMA to regulate competition within specific sectors.
Evolution and Modern Application
 EU Influence: UK competition law was significantly shaped by EU regulations and
directives, ensuring consistency with European competition standards until Brexit.
 Post-Brexit Adjustments: The UK has retained much of its competition framework but now
has more autonomy to adjust regulations to suit national interests.
 Current Focus: Addressing challenges posed by digital markets, ensuring fair competition
post-Brexit, and adapting to global competition trends.