Competition Act 2002

Posted on : May 11, 2020
Author : AGA Admin

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 OBJECTS TO BE ACHIEVED

1. To check anti-competitive practices
2. To prohibit abuse of dominance

III. Regulation of combinations.

1. To provide for the establishment of CCI, a quasi-judicial body to perform below mentioned duties:

• Prevent practices having adverse impact on competition

• Promote and sustain competition in the market

• Protect consumer interests at large

• Ensure freedom of trade carried on by other participants in the market

• Look into matters connected therewith or incidental thereto.

1. ANTI-COMPETITIVE AGREEMENTS

The departure is reflected in section 3 of the Act, which states that enterprises, persons or associations of enterprises or persons, including cartels, shall not enter into agreements in respect of production, supply, distribution, storage, acquisition or control of goods or provision of services, which cause or are likely to cause an “appreciable adverse impact” on competition in India. Such agreements would consequently be considered void.

The species of agreement which would be considered to have an ‘appreciable adverse impact” would be those agreements which:

• Directly or indirectly determine sale or purchase prices;

• Limit or control production, supply, markets, technical development, investment or provision of services;

• Share the market or source of production or provision of services by allocation of inter alia geographical area of market, nature of goods or number of customers or any other similar way

• Directly or indirectly result in bid rigging or collusive bidding.

Further, the agreements, which are entered into in respect of various intellectual property rights and which recognize the proprietary rights of one party over the other in respect of trademarks, patents, copyrights, geographical indicators, industrial designs and semi conductors have been withdrawn from the purview of “anti competitive agreements”. The inherently monopolistic rights created in favour of bona fide holders of various forms of intellectual property have been treated as sacrosanct.

2. ABUSE OF DOMINANT POSITION

Section 4 of the Act enjoins, “no enterprise shall abuse its dominant position“. Dominant position is the position of strength enjoyed by an enterprise in the relevant market, which enables it to operate independently of competitive forces prevailing market, or affect it’s competitors or consumers or the relevant market in it’s favour. There shall be an abuse of dominant position if an enterprise indulges into the below mentioned activities:

• Directly or indirectly imposing discriminatory conditions in the purchase or sale of goods or service, or setting prices in the purchase or sale (including predatory pricing) of goods or services;

• Limiting or restricting the production of goods or provision of services or market therefore; or limiting technical or scientific development relating to goods or services to the prejudice of customers;

• Indulging in practice or practices resulting in the denial of market access

• Making conclusion of contracts subject to acceptance by other parties of supplementary obligations, which has no connection with the subject of such contract;

• Utilization of the dominant position in one relevant market to enter into, or protect, another relevant market.

3. COMBINATIONS

The Act is designed to regulate the operation and activities of “combinations“, a term, which contemplates acquisition, mergers or amalgamations. Combination that exceeds the threshold limits specified in the Act in terms of assets or turnover, which causes or is likely to cause an appreciable adverse impact on competition within the relevant market in India, can be scrutinized by the Commission.

 

UN Strategy and Plan of Action on Hate Speech

The UN Strategy and Plan of Action on Hate Speech aims to give to the United Nations the room and the resources to address hate speech, which poses a threat to United Nations principles, values and programmes. Measures taken will be in line with international human rights norms and standards, in particular the right to freedom of opinion and expression.

 

The objectives are twofold:

• Enhance UN efforts to address root causes and drivers of hate speech
• Enable effective UN responses to the impact of hate speech on societies

In order to address hate speech, the UN will implement actions at global and country level, as well as enhance internal cooperation among relevant UN entities.

The Strategy will be guided by the following principles:

 

1. The strategy and its implementation to be in line with the right to freedom of opinion and expression. The UN supports more speech, not less, as the key means to address hate speech; 2. Tackling hate speech is the responsibility of all – governments, societies, the private sector, starting with individual women and men. All are responsible, all must act; 3.   In the digital age, the UN should support a new generation of digital citizens, empowered to recognize, reject and stand up to hate speech; 4.   We need to know more to act effectively – this calls for coordinated data collection and research, including on the root causes, drivers and conditions conducive to hate speech.