COMPETITION

ACT 2002
AND ITS
AMENDMENT
S
 What is
Competition is
something where

competition in
two or more people
or organization are

the market?
trying to achieve
the same things or
to be better than
someone else.
Why do we need competition in the market ?
Makes enterprises Enhances consumer Beneficial for the
more efficient and Ensures optimum welfare since consumers,
offers wider choice utilization of consumers can buy producers / sellers
to consumers at available resources. more of better and finally for the
lower prices. quality products at whole society since
lower prices. it induces economic
growth.
When was the
competition law
enacted in India?
• The Monopolies & Restrictive Trade Practices Act,
1969 is the first enactment to deal with
competition issues and came into effect on 1st
June 1970.
• The Government appointed a committee in
October 1999 to examine the existing MRTP Act
for shifting the focus of the law from curbing
monopolies to promoting competition and to
suggest a modern competition law.
• Pursuant to the recommendations of this
committee, the Competition Act, 2002, was
enacted on 13th January 2003.
What was MRTP ACT
1969?

• The Monopolies and Restrictive Trade Activities

(MRTP) Act, introduced in 1969, sought to limit
the concentration of economic power in a few
hands while also regulating monopolistic and
restrictive trade activities in India.
• It aimed to promote fair competition, protect
consumers interests, and assure market
efficiency. The MRTP Act was amended to
improve its provisions and handle developing
difficulties.
 The Monopolies and Restrictive Trade
Practices Act (MRTP) was replaced by the
Competition Act in 2002 primarily due to

Need to the following reasons:

• Economic Reforms and Globalization: The MRTP

replace Act was enacted in 1969, a time when India had a

closed economy. With the advent of economic

the
liberalization, privatization, and globalization, the MRTP
Act became increasingly outdated and unable to keep
pace with the changing market dynamics.

MRTP
• Emphasis on Competition: The Competition Act
shifted the focus from preventing monopolies and
restrictive trade practices to promoting competition. It

act, aimed to create a level playing field for businesses,

encourage innovation, and protect consumer interests.

1969?
• Broader Scope: The Competition Act covers a wider
range of anti-competitive practices than the MRTP Act.
It includes provisions on abuse of dominant position,
mergers and acquisitions, and cartels, making it a
more comprehensive piece of legislation.
• Modernized Approach: The Competition Act adopted a
more modern and flexible approach to competition law. It
incorporated international best practices and was
designed to be more adaptable to evolving market
conditions.
• Focus on Consumer Welfare: The Competition Act
emphasized the importance of consumer welfare as a key
objective. It recognized that healthy competition benefits
consumers by ensuring lower prices, better quality
products, and more choices.
• In conclusion, the MRTP Act was replaced by the
Competition Act to better align with India's economic
reforms, promote competition, and protect consumer
interests in a globalized market. The Competition Act is a
more comprehensive and modern piece of legislation that
has played a significant role in shaping India's
Introduction to COMPETITION
ACT, 2002

• The Competition Act, 2002, is a significant piece of legislation

in India that aims to promote fair competition and prevent
anti-competitive practices in the market. It was enacted to
address concerns related to market dominance, cartelization,
and unfair trade practice.
• It attempted to level the playing field for enterprises,
encourage innovation and efficiency, and build a competitive
market environment that promotes economic growth and
development.
• The Competition Act , 2002 is divided into 66 sections and IX
chapters.
• The Competition Act, 2002 was implemented on
recommendation of The Raghavan committee ( Chaired by Mr.
 Section 1 : Short title,
commencement and extent
Short title : The Act is officially known as the "Competition
Act, 2002.“

Commencement : The Act came into force on March 31 2003.

Extent : The Act extends to the whole of India. This means it

applies to all businesses operating within the geographical
boundaries of India( Including J&K as of 2023), regardless of
their size or nature.
 01
Objective of to provide for the establishment of
a commission to prevent practices
having adverse effect on

COMPETITION 02
competition
to promote and sustain
competition in markets in India
ACT, 2002
03 to protect the interest of
consumers

04 to prevent anti-competitive
practices

05 ensure freedom of trade

Establishment of
Competition Commission of
India (CCI)
The objectives of the Act are sought to be
achieved through the instrumentality of the
CCI shall prohibit anti-competitive
Competition Commission of India (CCI) which has agreements and abuse of
been established by the Central Government dominance, through a process of
with effect from 14th October, 2003. enquiry.
What are the functions of CCI? It shall give opinion on competition
issues on a reference received from
an authority established under any
law (statutory authority)/Central
Government.

CCI is also create public awareness

and impart training on competition
issues.
Section : 2 Definition
Section 2(a) "acquisition" means, directly or indirectly,
acquiring or agreeing to acquire- e shares, voting
rights or assets of any enterprise; or (i) control over
management or control over assets of any enterprise;

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 (i) whether or not such
arrangement, understanding or action is intended to
be enforceable by legal proceedings;
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;
 Section 2(f) “consumer" means any (ii) hires or avails of any services for a
person who-- (i) buys any goods for a consideration which has been paid or
consideration which has been paid or promised or partly paid and partly
promised or partly paid and partly promised or under any system of
promised Or under any system of deferred payment and includes any
deferred payment and includes any user beneficiary of such services other than
of such goods other than the person who the person who hires or avails of the
buys such goods for consideration paid services for consideration paid o
or promised or partly paid or partly promised, or partly paid and partly
promised, or under any system of promised, or under any system of
deferred payment, when such services
deferred payment when such use is
are availed of with the approval of the
made with the approval of such person, first-mentioned person whether such
whether such purchase of goods is for hiring or availing of services is for any
resale or for any commercial purpose or commercial purpose or for personal use;
for personal use;
Section 2(o) "price", in relation to the
sale of any goods or to the performance
of any services, includes every
valuable consideration, whether direct
or indirect , or deferred, and includes
any consideration which in effect
relates to the sale of any goods or to
the performance of any services
although ostensibly relating to any
other matter or thing:
Section 2(z) words and expressions
used but not defined in this Act and
defined in the Companies Act, 1956
shall have the same meanings
respectively assigned to them in
that Act.
Features of Anti-competitive Agreements:
Any individual or enterprises shall not

Competitio deal in production supply or

distribution that may cause a negative
impact regarding competition in India.

n Act,2002 Any existence of such agreements is

considered illegal.

Abuse of dominant position:

In the event, an enterprise or an
associated individual, it is found to
indulge in practices that are unfair or
discriminatory in nature shall be
considered an abuse of dominant
position.
If a party is found to be in abuse of its
position, then they will be subjected to
an investigation from the concerned
authorities.
Combinations:
• As per the act a combination is defined as terms which
lead to acquisitions or mergers. But should such
combinations cross the limits as put forth by the Act,
then the parties involved would be under the scrutiny
of the Competition Commission of India.
Competition Commission of India:
• The Competition Commission of India is an
independent body with the powers to enter into
contracts and should the contracts be broken they can
sue the parties involved.
Review of orders of
Commission

Any person aggrieved by an order of the commission can apply to the commission for
review of its order within thirty days from the date of the order. Commission may
entertain a review application after the expiry of thirty days, if it is satisfied that the
applicant was prevented by sufficient cause from preferring the application in time. No
order shall be modified or set aside without giving an opportunity of being heard to the
person in whose favour the order is given and the Director General where he was a
party to the proceedings.
 Appeal Penalty
Any person aggrieved by any decision or order of the • If any person fails to comply with the orders or directions of the
Commission may file an appeal to the Supreme Court Commission shall be punishable with fine which may extend to ₹ 1
within sixty days from the date of communication of
lakh for each day during which such non compliance occurs,
the decision or order of the commission. No appeal
shall lie against any decision or order of the subject to a maximum of ₹ 10 crore.[20]
commission made with the consent of the parties. • If any person does not comply with the orders or directions issued,

or fails to pay the fine imposed under this section, he shall be

punishable with imprisonment for a term which will extend to three

years, or with fine which may extend to ₹ 25 crores or with both.

• Section 44 provides that if any person, being a party to a

combination makes a statement which is false in any material

particular or knowing it to be false or omits to state any material

particular knowing it to be material, such person shall be liable to a

penalty which shall not be less than rupees fifty lakhs but which

may extend to rupees one crore, as may be determined by the

Commission.
Amendments
2007

Definitions: Regulatory Framework for

Combinations:
Clarifications and expansions of
definitions, such as "enterprise," The amendments introduced a
"group," "dominant position," and framework for the regulation of
"market" to enhance mergers and acquisitions,
understanding and application of requiring entities to notify the CCI
the law. for combinations that meet
specified thresholds.
 2009

Promotion of Consumer Welfare:

• Emphasis was placed on protecting consumer interests as a
fundamental objective of the Competition Act, aligning regulatory
actions with consumer welfare considerations.
Clarification on Abuse of Dominance:
• The amendments provided clearer guidelines on what
constitutes abuse of market dominance, focusing on
practices that harm competition and consumer welfare.
Introduction of the Concept of “Combinations”:
• The amendments established a framework for the regulation of
mergers, acquisitions, and amalgamations (collectively referred to as
"combinations"). This required parties to notify the CCI for
combinations meeting certain thresholds.
Formation of the Competition Appellate Tribunal (CAT):
• The amendments established a separate tribunal to handle appeals
against the orders of the CCI, enhancing the adjudicatory process.
2012

Introduction of "Anti-competitive Agreements":

• The amendments provided clearer definitions and parameters regarding anti-competitive
agreements, specifically cartels and other collusive practices.

Leniency Provisions:
• Enhanced leniency provisions were introduced to encourage whistleblowing in cartel cases, allowing
those who provide information about anti-competitive practices to receive reduced penalties.

2017
Focus on Digital Markets:
• Recognizing the significance of digital markets, the amendments called for a more vigilant
approach to assessing anti-competitive practices in the tech sector.

Fast Track Approval for Combinations:

• A mechanism for expedited approval of certain combinations was introduced, streamlining the
review process and reducing delays.
2019

Regulation of Combinations:
• Changes were made to streamline the merger review process,
simplifying the requirements for notifying combinations and
ensuring quicker assessments.
Provisions for Leniency:
• The leniency program was further strengthened to encourage
companies to come forward with information about cartels and
anti-competitive agreements.
Dissolution of Competition Appellate Tribunal (COMPAT)
• COMPAT was replaced by National company law tribunal (NCLAT)
2023
• Introduction of Limitation Period
Introduction of limitation period of 3 years for filing Information/ Reference for anticompetitive
agreements and abuse of dominant position This would provide certainty to
businesses/markets and facilitate ease of doing business.
• Settlement
The settlement mechanism would apply to alleged contraventions related to certain anti-
competitive agreements and abuse of dominance An application for settlement may be filed
only after receipt of investigation report but prior to such time as may be prescribed by
Regulations, before the passing of final order by the CCI CCI may impose certain conditions
which may include settlement amount.
• Deal Value Threshold (DVT)
In addition to the criteria of assets and turnover to determine notifiability of a transaction, value
of any transaction, in connection with acquisition of any control, shares, voting rights or assets
of an enterprise, merger or amalgamation that exceeds INR 2000 crore has been provided as a
new notification criterion
Provided that the enterprise which is being acquired or taken control of or merged or
amalgamated has such substantial business operations in India, as specified by the regulations
Conclusion

The Competition Act replaced the MRTP Act because it

was obsolete and insufficient to handle modern
competition challenges. The 2002 Competition Act
modernized India's competition law by replacing the
MRTP Act. It promotes market fairness, prevents anti-
competitive practices, and protects consumers. The Act
powers the Competition Commission of India (CCI) to
enforce competition law. It outlaws anti-competitive
mergers and acquisitions, agreements that restrict
competition, and firm misuse of dominant positions.
Competitive markets, economic efficiency, and
consumer welfare in India depend on the Competition
Act.
Presented By :
Mishra Nikhil
Kartela Maryam
Panchal Dhruv
More Mitali
Rathod Dhwani

Presented to :
Dr. Bhargav Pandya
Assistant Professor
Faculty of Management
Studies
The Maharaja Sayajirao
University of Baroda
Thank You