The Competition act
2002
The Competition Act 2002
• The Competition Act, 2002 was enacted by the Parliament of India
and replaced The Monopolies and Restrictive Trade Practices Act,
1969.
• The Competition Act was enacted in the year 2002 and it came
into force on 13th January 2003.-
• Aim- to govern Indian competition law.
The Competition Act 2002
• After its enactment The Competition Act, 2002 has been amended
twice, The Competition (Amendment) Act, 2007 and The
Competition (Amendment) Act, 2009.
• The Monopolies and Restrictive Trade Practices Act, 1969 (MRTP
Act) was repealed and replaced by the Competition Act, 2002, on
the recommendations of Raghavan committee.
Competition Act 2002
An Act to provide, keeping in view of the economic development of the
country for the establishment of a Commission
• to prevent practices 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 other participants in markets, in
India
.It extends to the whole of India except the State of Jammu and Kashmir
.It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint
Features
1. The framework it provides for the establishment of the
Competition Commission, and ER
2. The tools it provides to prevent anti-competitive practices and to
promote positive competition in the Indian market.
Objectives
• The Act protects the free and fair competition
which protects the freedom of trade, which in
turn protects the interest of the consumer.• To
prevent unnecessary intervention by the
government.• To provide the framework for the
establishment of the Competition Commission
Objectives
• to prevent monopolies and to promote
competition in the market
• to protect the freedom of trade for the
participating individuals and entities in the
market
• to protect the interest of the consumer
Important Definition under the act
Acquisition [Section 2(a)]
“Acquisition” means, directly or indirectly, acquiring or agreeing to acquire—
(i) shares, voting rights or assets of any enterprise; or
(ii) control over management or control over assets of any enterprise;
Agreement [Section 2(b)]
"Agreement" includes any arrangement or understanding or action in concert,—
(i) whether or not, such arrangement, understanding or action is formal or in
writing; or
(ii) whether or not such arrangement, understanding or action is intended to be
enforceable by legal proceedings
Important Definition under the act
Cartel [Section 2(c)]
“Cartel” includes an association of producers, sellers, distributors,
traders or service
providers who, by agreement amongst themselves, limit, control or
attempt to control
the production, distribution, sale or price of, or, trade in goods or
provision of services.
Important Definition under the act
Enterprise [Section 2(h)]
“Enterprise” means a person or a department of the Government, who or which is, or
has been, engaged in any activity, relating to the production, storage, supply,
distribution, acquisition or control of articles or goods, or the provision of services.
Goods [Section 2(i)]
“Goods” means goods as defined in the Sale of Goods Act, 1930 and includes—
(A) products manufactured, processed or mined;
(B) debentures, stocks and shares after allotment;
(C) in relation to goods supplied, distributed or controlled in India, goods
imported into India;
Important Definition under the act
Person [Section 2(l)]
“Person” includes—
(i) an individual;
(ii) a Hindu undivided family;
(iii) a company;
(iv) a firm;
(v) an association of persons or a body of individuals, whether incorporated
or not, in India or outside India;
(vi) any corporation established by or under any Central, State
(vii) anybody corporate incorporated
(viii) a co-operative society
