Showing posts with label Competition Law. Show all posts
Showing posts with label Competition Law. Show all posts
Friday, August 6, 2010
Provisions Related to Abuse of Dominance in Competition Act 2002
Provisions Related to Abuse of Dominance in Competition Act 2002
The Competition Act, 2002 as amended by the Competition (Amendment) Act, 2007, (the Act) follows the philosophy of modern competition laws and aims at fostering competition and at protecting Indian markets against anti-competitive practices by enterprises. The Act prohibits anti-competitive agreements, abuse of dominant position by enterprises, and regulates entering into combinations (consisting of mergers, amalgamations and acquisitions) with a view to ensure that there is no adverse effect on competition in India. This competition advocacy and awareness booklet addresses the applicability of Section 4 of the Competition Act, 2002 relating to abuse of dominant position (dominance) by enterprises. Competition laws all over the world are primarily concerned with the acquisition and/or exercise of market power and its abuse. The term “market power” is variously known as “dominant position”, “monopoly power” and “substantial market power”.
WHAT IS DOMINANCE?
COMPETITION LAWS - A BASIC UNDERSTANDING
COMPETITION AND COMPETITION LAWS IN INDIA
In common parlance, competition in the market means sellers striving independently for buyers’ patronage to maximize profit (or other business objectives). A buyer prefers to buy a product at a price that maximizes his benefits whereas the seller prefers to sell the product at a price that maximizes his profit.
Competition is now universally acknowledged as the best means of ensuring that consumers have access to the broadest range of services at the most competitive prices. Producers will have maximum incentive to innovate, reduce their costs and meet consumer demand. Competition thus promotes allocative and productive efficiency. But all this requires healthy market conditions and governments across the globe are increasingly trying to remove market imperfections through appropriate regulations to promote competition.
<-----More---->
