Here's a comprehensive and structured Note on Competition Law, suitable for academic or
legal purposes:
Note on Competition Law
Introduction
Competition Law, also known as Antitrust Law in some jurisdictions, is a branch of law that
seeks to promote fair competition in the market, prevent anti-competitive practices, and protect
consumer interests. It ensures that markets remain open, free, and efficient by prohibiting
activities like cartels, abuse of dominance, and anti-competitive mergers. In India, Competition
Law is governed primarily by the Competition Act, 2002.
Objectives of Competition Law
Promote and sustain competition in markets
Protect consumer interests
Ensure freedom of trade
Prevent practices having adverse effect on competition
Encourage economic efficiency and innovation
Historical Background
Before the Competition Act, 2002, India had the Monopolies and Restrictive Trade
Practices Act (MRTP), 1969.
Due to liberalization and global economic changes, the MRTP Act was considered
outdated.
The Competition Act, 2002 replaced the MRTP Act based on recommendations by the
Raghavan Committee.
The Competition Commission of India (CCI) was established in 2003 and became fully
functional by 2009.
Key Provisions of the Competition Act, 2002
1. Anti-Competitive Agreements (Section 3)
Horizontal Agreements: Agreements between competitors (e.g., cartels, price-fixing,
bid rigging)
Presumed to have an appreciable adverse effect on competition (AAEC)
Vertical Agreements: Between different levels of production (e.g., tie-in arrangements,
exclusive supply)
Such agreements are void if they cause or are likely to cause an appreciable adverse effect
on competition.
2. Abuse of Dominant Position (Section 4)
Prohibits misuse of market power by a dominant enterprise
Forms of abuse:
o Unfair pricing
o Limiting production or services
o Predatory pricing
o Denial of market access
3. Regulation of Combinations (Section 5 & 6)
Refers to mergers, acquisitions, and amalgamations that cross certain asset or turnover
thresholds
Combinations are scrutinized to ensure they do not cause AAEC
CCI must approve such combinations before they come into effect
Role and Powers of Competition Commission of India (CCI)
Investigates anti-competitive practices
Imposes penalties for violations
Approves or prohibits mergers and acquisitions
Issues cease-and-desist orders
Promotes competition advocacy and awareness
CCI decisions are appealable before the National Company Law Appellate Tribunal
(NCLAT), and further before the Supreme Court.
Competition Advocacy
Section 49 of the Act empowers the CCI to engage in competition advocacy, creating awareness
and advising the government and stakeholders on policies that promote competitive markets.
Landmark Cases
1. Excel Crop Care Ltd. v. CCI (2017) – Supreme Court upheld penalties imposed for bid
rigging in procurement.
2. Belaire Owners’ Association v. DLF Ltd. (2011) – DLF was found guilty of abusing its
dominant position in the real estate market.
3. Google LLC Case (2022) – CCI imposed ₹1,337 crore penalty for anti-competitive
practices in the Android ecosystem.
4. Amazon-Future Group-Reliance Dispute – Highlighted the role of CCI in regulating
big tech mergers and retail sector combinations.
Recent Developments
Competition (Amendment) Act, 2023:
o Introduced settlement and commitment mechanisms
o Reduced time for merger review from 210 to 150 days
o Expanded definition of "control" and introduced a "deal value threshold"
o Empowered CCI to examine hub-and-spoke cartels
Increased scrutiny on digital markets, e-commerce, and big-tech companies
Comparison with Global Laws
Countr
Law Authority
y
USA Sherman Act, Clayton Act Federal Trade Commission (FTC)
Treaty on the Functioning of
EU European Commission
the EU
Competition and Markets Authority
UK Competition Act, 1998
(CMA)
India Competition Act, 2002 Competition Commission of India
Countr
Law Authority
y
(CCI)
Challenges
Digital economy and global e-commerce platforms
Cross-border enforcement and cooperation
Long investigation timelines
Balancing innovation with regulation
Underreporting of anti-competitive behavior in informal sectors
Conclusion
Competition Law is an essential pillar for a healthy market economy. In India, the Competition
Act, 2002 has played a crucial role in curbing monopolistic tendencies and ensuring consumer
welfare. With the emergence of digital platforms and evolving global trade practices, the law
continues to adapt, promoting transparency, innovation, and fair play in the marketplace.
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