Taxmann's Indian Competition Law

Page 1



© Taxmann Price : ` 895 First Published : December 2020 Published by : Taxmann Publications (P.) Ltd. Sales & Marketing : 59/32, New Rohtak Road, New Delhi-110 005 India Phone : +91-11-45562222 Website : www.taxmann.com E-mail : sales@taxmann.com Regd. Office : 21/35, West Punjabi Bagh, New Delhi-110 026 India Printed at : Tan Prints (India) Pvt. Ltd. 44 Km. Mile Stone, National Highway, Rohtak Road Village Rohad, Distt. Jhajjar (Haryana) India E-mail : sales@tanprints.com Disclaimer Every effort has been made to avoid errors or omissions in this publication. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. It is notified that neither the publisher nor the author or seller will be responsible for any damage or loss of action to any one, of any kind, in any manner, therefrom. It is suggested that to avoid any doubt the reader should cross-check all the facts, law and contents of the publication with original Government publication or notifications. The author has not revealed any confidential facts about any company in the case studies cited herein. Therefore, no part of this book may be reproduced in any arbitration or in courts or legal forum as an evidence for actions and defaults since the cases studies are included as examples for academic purpose only. Care has been taken that no identity of any organization or person is revealed here. The author has used his general knowledge, creativity and innovative ideas to express the theme of disputes through the examples of case studies in India and abroad. Resemblance to any actual case or incidence may be a mere coincidence. No part of this book may be reproduced or copied in any form or by any means [graphic, electronic or mechanical, including photocopying, recording, taping, or information retrieval systems] or reproduced on any disc, tape, perforated media or other information storage device, etc., without the written permission of the publishers. Breach of this condition is liable for legal action. For binding mistake, misprints or for missing pages, etc., the publisher’s liability is limited to replacement within seven days of purchase by similar edition. All expenses in this connection are to be borne by the purchaser. All disputes are subject to Delhi jurisdiction only.


Preface In a sense, the idea of this book took seed in 2015, when a Ld. Judge in Hon’ble Competition Appellate Tribunal,1 while listening to a matter, rued the lack of Indian precedents being cited by the counsels. However, in 2015, there were limited Indian jurisprudence on competition law for counsels to rely on. Hence, counsels had no options but to rely extensively on precedents from Europe and United States. Similarly, while advising the clients or while teaching students, counsels and teachers, were being forced to rely on judgments coming from Europe and United States and hope that Competition Commission of India and other forums in India will stick to the same principles. However, by 2020, there was a voluminous amount of judgments from the Learned Competition Commission of India, Hon’ble High Courts of various States and Hon’ble Supreme Court of India. These judgment not only covered the legal and economic issues pertaining to competition law, they also covered the administrative issues arising out of Competition Act, 2002. Interestingly, on occasions these judgments adapted the principles of competition law in a manner suitable to Indian markets, Indian firms and Indian legal structure. Hence, last year, when Sudhanshu and I started discussing the proposal for this book with the Taxmann team, our primary objective was to write a book which focussed on Indian Competition law, elucidating Indian jurisprudence and then compare it with position taken by forums in European Union and United States. We wanted to dive deep into this fascinating subject and bring out the micro issues that are or may become relevant to the study and practice of competition law. Hence, our next objective was to ensure that the book does not get restricted to just the major provisions of the statute and broader issues of competition law, but also highlights economic, technical and administrative concepts/issues that become relevant in practical application and interpretation of competition law. We believe deeply that competition law, if applied properly, can assist in the economic growth of India and benefit it’s population. However, for that to happen, it cannot afford to be relegated to a hyper-technical #OMPETITION !PPELLATE 4RIBUNAL WAS SUBSEQUENTLY MERGED INTO .ATIONAL #OMPANY ,AW !PPELLATE 4RIBUNAL

I-9


I-10

02%&!#%

subject, read and understood by select few who specialise in this field. Hence, our last and final objective was to ensure that the book does not become a technical treatise meant only for experts but, a document that can be read and understood by a wider audience which includes, lawyers, judges, academicians, law makers, market regulators as well as entrepreneurs. As authors, we are happy that the book has been able to achieve these objectives. The book is a repository of the judgments, pertaining to competition law, passed by Indian forums. It has also been enriched by the landmark judgments of forums in European Union and United States. The book discusses both macro and micro issues pertaining to competition law. It also tries to delve into new issues arising in the field of competition law, like the e-commerce market and algorithmic systems. We have tried to keep the language simple and explain the concepts logically. We do hope that the readers will find this book useful in navigating the nuances of competition law. We acknowledge the research assistance provided by Aishwarya Gopakumar (LL.M Nalsar 2020) in the completion of this book. Lastly, we would convey our sincere gratitude to the publishers M/s Taxmann for their continuous assistance and inputs. ADV. GAUTAM SHAHI DR. SUDHANSHU KUMAR


Contents 3%#4)/.

0!'%

Foreword

I-5

About the Authors

I-7

Preface

I-9

List of cases

I-17

COMPETITION ACT, 2002 CHAPTER I PRELIMINARY 1.

3HORT TITLE EXTENT AND COMMENCEMENT

3

2.

$EFINITIONS

6 CHAPTER II

PROHIBITION OF CERTAIN AGREEMENTS, ABUSE OF DOMINANT POSITION AND REGULATION OF COMBINATIONS Prohibition of agreements 3.

!NTI COMPETITIVE AGREEMENTS

43

Prohibition of abuse of dominant position 4.

!BUSE OF DOMINANT POSITION

126

Regulation of combinations 5.

#OMBINATION

196

6.

2EGULATION OF COMBINATIONS

214

CHAPTER III COMPETITION COMMISSION OF INDIA 7.

%STABLISHMENT OF #OMMISSION

263

8.

#OMPOSITION OF #OMMISSION

265

I-11


S.29

#/.4%.43

3%#4)/.

I-12 0!'%

9.

3ELECTION #OMMITTEE FOR #HAIRPERSON AND -EMBERS OF #OMMISSION

268

10.

4ERM OF OFFICE OF #HAIRPERSON AND OTHER -EMBERS

270

11.

2ESIGNATION REMOVAL AND SUSPENSION OF #HAIRPERSON AND OTHER -EMBERS

272

12.

2ESTRICTION ON EMPLOYMENT OF #HAIRPERSON AND OTHER -EMBERS IN CERTAIN CASES

274

13.

!DMINISTRATIVE POWERS OF #HAIRPERSON

275

14.

3ALARY AND ALLOWANCES AND OTHER TERMS AND CONDITIONS OF SERVICES OF #HAIRPERSON AND OTHER -EMBERS

275

15.

6ACANCY ETC NOT TO INVALIDATE PROCEEDINGS OF #OMMISSION

276

16.

!PPOINTMENT OF $IRECTOR 'ENERAL ETC

276

17.

!PPOINTMENT OF 3ECRETARY EXPERTS PROFESSIONALS AND OFFICERS AND OTHER EMPLOYEES OF #OMMISSION

279

CHAPTER IV DUTIES, POWERS AND FUNCTIONS OF COMMISSION 18.

$UTIES OF #OMMISSION

280

19.

)NQUIRY INTO CERTAIN AGREEMENTS AND DOMINANT POSITION OF ENTERPRISE

282

20.

)NQUIRY INTO COMBINATION BY #OMMISSION

294

21.

2EFERENCE BY STATUTORY AUTHORITY

296

21A.

2EFERENCE BY #OMMISSION

297

22.

-EETINGS OF #OMMISSION

298

23.

;Omitted by the Competition (Amendment) Act, 2007, w.e.f. 12-10-2007=

299

24.

;Omitted by the Competition (Amendment) Act, 2007, w.e.f. 12-10-2007=

299

25.

;Omitted by the Competition (Amendment) Act, 2007, w.e.f. 12-10-2007=

300

26.

0ROCEDURE FOR INQUIRY UNDER SECTION

300

27.

/RDERS BY #OMMISSION AFTER INQUIRY INTO AGREEMENTS OR ABUSE OF DOMINANT POSITION

307

28.

$IVISION OF ENTERPRISE ENJOYING DOMINANT POSITION

314

29.

0ROCEDURE FOR INVESTIGATION OF COMBINATIONS

315


I-13

#/.4%.43

3%#4)/.

S.48 0!'%

30.

0ROCEDURE IN CASE OF NOTICE UNDER SUB SECTION OF SECTION

317

31.

/RDERS OF #OMMISSION ON CERTAIN COMBINATIONS

318

32.

!CTS TAKING PLACE OUTSIDE )NDIA BUT HAVING AN EFFECT ON COMPETITION IN )NDIA

322

33.

0OWER TO ISSUE INTERIM ORDERS

325

34.

;Omitted by the Competition (Amendment) Act, 2007, w.e.f. 12-10-2007=

327

35.

!PPEARANCE BEFORE #OMMISSION

327

36.

0OWER OF #OMMISSION TO REGULATE ITS OWN PROCEDURE

328

37.

;Omitted by the Competition (Amendment) Act, 2007, w.e.f. 12-10-2007=

336

38.

2ECTIFICATION OF ORDERS

336

39.

%XECUTION OF ORDERS OF #OMMISSION IMPOSING MONETARY PENALTY

337

40.

;Omitted by the Competition (Amendment) Act, 2007, w.e.f. 12-10-2007=

339

CHAPTER V DUTIES OF DIRECTOR GENERAL 41.

$IRECTOR 'ENERAL TO INVESTIGATE CONTRAVENTIONS

339

CHAPTER VI PENALTIES 42.

#ONTRAVENTION OF ORDERS OF #OMMISSION

342

42A.

#OMPENSATION IN CASE OF CONTRAVENTION OF ORDERS OF COMMISSION

345

43.

0ENALTY FOR FAILURE TO COMPLY WITH DIRECTIONS OF #OMMISSION AND $IRECTOR 'ENERAL

345

43A.

0OWER TO IMPOSE PENALTY FOR NON FURNISHING OF INFORMATION ON COMBINATIONS

347

44.

0ENALTY FOR MAKING FALSE STATEMENT OR OMISSION TO FURNISH MATERIAL INFORMATION

349

45.

0ENALTY FOR OFFENCES IN RELATION TO FURNISHING OF INFORMATION

349

46.

0OWER TO IMPOSE LESSER PENALTY

350

47.

#REDITING SUMS REALISED BY WAY OF PENALTIES TO #ONSOLIDATED &UND OF )NDIA

357


S.57

#/.4%.43

3%#4)/.

48.

I-14 0!'%

#ONTRAVENTION BY COMPANIES

358

CHAPTER VII COMPETITION ADVOCACY 49.

#OMPETITION ADVOCACY

361

CHAPTER VIII FINANCE, ACCOUNTS AND AUDIT 50.

'RANTS BY #ENTRAL 'OVERNMENT

366

51.

#ONSTITUTION OF FUND

366

52.

!CCOUNTS AND AUDIT

367

53.

&URNISHING OF RETURNS ETC TO #ENTRAL 'OVERNMENT

369

CHAPTER VIIIA APPELLATE TRIBUNAL 53A.

!PPELLATE 4RIBUNAL

370

53B.

!PPEAL TO !PPELLATE 4RIBUNAL

374

53C. to ;Omitted by the Finance Act, 2017, w.e.f. 26-5-2017= 53M.

377

53N.

!WARDING COMPENSATION

379

53-O.

0ROCEDURE AND POWERS OF !PPELLATE 4RIBUNAL

383

53P.

%XECUTION OF ORDERS OF !PPELLATE 4RIBUNAL

385

53Q.

#ONTRAVENTION OF ORDERS OF !PPELLATE 4RIBUNAL

386

53R.

;Omitted by the Finance Act, 2017, w.e.f. 26-5-2017=

387

53S.

2IGHT TO LEGAL REPRESENTATION

387

53T.

!PPEAL TO 3UPREME #OURT

388

53U.

0OWER TO PUNISH FOR CONTEMPT

389

CHAPTER IX MISCELLANEOUS 54.

0OWER TO EXEMPT

390

55.

0OWER OF #ENTRAL 'OVERNMENT TO ISSUE DIRECTIONS

395

56.

0OWER OF #ENTRAL 'OVERNMENT TO SUPERSEDE #OMMISSION

396

57.

2ESTRICTION ON DISCLOSURE OF INFORMATION

398


I-15

#/.4%.43

3%#4)/.

S.66 0!'%

58.

#HAIRPERSON -EMBERS $IRECTOR 'ENERAL 3ECRETARY /FFICERS AND OTHER EMPLOYEES ETC TO BE PUBLIC SERVANTS

402

59.

0ROTECTION OF ACTION TAKEN IN GOOD FAITH

403

60.

!CT TO HAVE OVERRIDING EFFECT

404

61.

%XCLUSION OF JURISDICTION OF CIVIL COURTS

408

62.

!PPLICATION OF OTHER LAWS NOT BARRED

408

63.

0OWER TO MAKE RULES

409

64.

0OWER TO MAKE REGULATIONS

414

65.

0OWER TO REMOVE DIFFICULTIES

416

66.

2EPEAL AND SAVING

416

APPENDICES

#OMPETITION !CT

429

.OTIlCATIONS

495

#OMPETITION #OMMISSION OF )NDIA 'ENERAL 2EGULATIONS

508

#OMPETITION #OMMISSION OF )NDIA $ETERMINATION OF #OST OF 0RODUCTION 2EGULATIONS

536

#OMPETITION #OMMISSION OF )NDIA 2ETURN ON -EASURES FOR THE 0ROMOTION OF #OMPETITION !DVOCACY !WARENESS AND 4RAINING ON #OMPETITION )SSUES 2ULES

538

#OMPETITION #OMMISSION OF )NDIA ,ESSER 0ENALTY 2EGULATIONS

541

#OMPETITION #OMMISSION OF )NDIA -ANNER OF 2ECOVERY OF -ONETARY 0ENALTY 2EGULATIONS

548

#OMPETITION !PPELLATE 4RIBUNAL &ORM AND &EE FOR lLING AN APPEAL AND FEE FOR lLING COMPENSATION APPLICATIONS 2ULES

559

#OMPETITION #OMMISSION OF )NDIA -EETING FOR 4RANSACTION OF "USINESS 2EGULATIONS

565

#OMPETITION #OMMISSION OF )NDIA 0ROCEDURE FOR %NGAGEMENT OF %XPERTS AND 0ROFESSIONALS 2EGULATIONS

569

#OMPETITION #OMMISSION OF )NDIA &ORM OF !NNUAL 3TATEMENT OF !CCOUNTS 2ULES

576

#OMPETITION #OMMISSION OF )NDIA &ORM AND 4IME OF 0REPA RATION OF !NNUAL 2EPORT 2ULES

595


#/.4%.43 3%#4)/.

I-16 0!'%

#OMPETITION !PPELLATE 4RIBUNAL 4ERM OF THE 3ELECTION #OMMI TTEE AND THE MANNER OF SELECTION OF PANEL OF NAMES 2ULES

603

#OMPETITION !PPELLATE 4RIBUNAL 3ALARIES AND !LLOWANCES AND OTHER 4ERMS AND #ONDITIONS OF 3ERVICE OF THE #HAIRPERSON AND OTHER -EMBERS 2ULES

605

#OMPETITION !PPELLATE 4RIBUNAL 2ECRUITMENT 3ALARIES AND OTHER 4ERMS AND #ONDITIONS OF 3ERVICE OF /FlCERS AND OTHER %MPLOYEES 2ULES

612

#OMPETITION #OMMISSION OF )NDIA 4ERM OF THE 3ELECTION #OMMITTEE AND THE -ANNER OF 3ELECTION OF 0ANEL OF .AMES 2ULES

622

#OMPETITION #OMMISSION OF )NDIA 3ELECTION OF #HAIRPERSON AND OTHER -EMBERS OF THE #OMMISSION 2ULES

624

#OMPETITION #OMMISSION OF )NDIA 3ALARY !LLOWANCES AND OTHER 4ERMS AND #ONDITIONS OF 3ERVICE OF #HAIRPERSON AND OTHER -EMBERS 2ULES

626

#OMPETITION #OMMISSION OF )NDIA $IRECTOR 'ENERAL 2ECRUITMENT 2ULES

629

#OMPETITION #OMMISSION OF )NDIA /ATH OF /FlCE AND OF 3ECRECY FOR #HAIRPERSON AND OTHER -EMBERS 2ULES

632

#OMPETITION #OMMISSION OF )NDIA 3ALARY !LLOWANCES OTHER 4ERMS AND #ONDITIONS OF 3ERVICE OF THE 3ECRETARY AND /FlCERS AND /THER %MPLOYEES OF THE #OMMISSION AND THE .UMBER OF SUCH /FlCERS AND OTHER %MPLOYEES 2ULES

634

#OMPETITION #OMMISSION OF )NDIA .UMBER OF !DDITIONAL *OINT $EPUTY OR !SSISTANT $IRECTOR 'ENERAL OTHER /FlCERS AND %MPLOYEES THEIR -ANNER OF !PPOINTMENT 1UALIlCATION 3ALARY !LLOWANCES AND OTHER 4ERMS AND #ONDITIONS OF 3ERVICE 2ULES

661

#OMPETITION #OMMISSION OF )NDIA 0ROCEDURE IN REGARD TO THE 4RANSACTION OF "USINESS 2ELATING TO #OMBINATIONS 2EGULATIONS

674

#OMPETITION !PPELLATE 4RIBUNAL 0ROCEDURE 2EGULATIONS

713

#OMPETITION #OMMISSION OF )NDIA #OMPETITION !SSESSMENT OF %CONOMIC ,EGISLATIONS AND 0OLICIES 'UIDELINES

717

#ONDITIONS OF 3ERVICE OF #HAIRPERSON AND -EMBERS OF 4RIBUNALS !PPELLATE 4RIBUNALS AND OTHER !UTHORITIES

723

SUBJECT INDEX

749


SAMPLE CHAPTER S. 18

#/-0%4)4)/. !#4

280

COMMENTS

17.1 Appointment of personnel of CCI 3ECTION OF THE !CT PROVIDES FOR APPOINTMENT OF 3ECRETARY EXPERTS PROFESSIONALS AND OFFICERS AND OTHER EMPLOYEES OF ##) )N EXERCISE OF THE POWERS CONFERRED BY 3ECTION g READ WITH 3ECTION OF THE !CT THE #ENTRAL 'OVERNMENT FRAMED THE #OMPETITION #OMMISSION OF )NDIA SALARY ALLOWANCES OTHER TERMS AND CONDITIONS OF SERVICE OF THE 3ECRETARY AND OFFICERS AND OTHER EMPLOYEES OF THE #OMMISSION AND THE NUMBER OF SUCH OFFICERS AND OTHER EMPLOYEES 2ULES 4HE 2ULES PROVIDE FOR SALARY AND ALLOWANCES CONDITIONS OF SERVICE AND ALLOWANCES FOR THE 3ECRETARY /FFICERS AND OTHER EMPLOYEES OF THE ##) &URTHER IN EXERCISE OF THE POWERS CONFERRED BY 3ECTION d READ WITH 3ECTION OF THE !CT THE ##) FRAMED THAT @0ROCEDURE FOR %NGAGEMENT OF %XPERTS AND 0ROFESSIONALS 2EGULATIONS 4HE 2EGULATIONS PROVIDES FOR THE ENGAGEMENT OF EXPERTS AND PROFESSIONALS IN THE FIELDS OF ECONOMICS LAW BUSINESS OR SUCH OTHER DISCIPLINES RELATED TO COMPETITION AND WHO SHALL DISCHARGE SUCH FUNCTIONS AS DIRECTED BY THE #HAIRPERSON IN ASSISTING THE #OMMISSION 4HE 2EGULATIONS ALSO PROVIDE FOR QUALIFICATIONS EXPERIENCE AND CLASSIFICATION OF EXPERTS AND PROFESSIONALS TERMS AND CONDITIONS OF ENGAGEMENT REMUNERATION OF EXPERTS AND OTHER RELATED MATTERS CHAPTER IV DUTIES, POWERS AND FUNCTIONS OF COMMISSION

Duties of Commission.

18. 3UBJECT TO THE PROVISIONS OF THIS !CT IT SHALL BE THE DUTY OF THE #OMMISSION TO ELIMINATE PRACTICES HAVING ADVERSE EFFECT ON COMPETITION PROMOTE AND SUSTAIN COMPETITION PROTECT THE INTERESTS OF CONSUMERS AND ENSURE FREEDOM OF TRADE CARRIED ON BY OTHER PARTICIPANTS IN MARKETS IN )NDIA Provided THAT THE #OMMISSION MAY FOR THE PURPOSE OF DISCHARGING ITS DUTIES OR PERFORMING ITS FUNCTIONS UNDER THIS !CT ENTER INTO ANY MEMORANDUM OR ARRANGEMENT WITH THE PRIOR APPROVAL OF THE #ENTRAL 'OVERNMENT WITH ANY AGENCY OF ANY FOREIGN COUNTRY

%NFORCED WITH EFFECT FROM


281

#( )6 $54)%3 0/7%23 &5.#4)/.3 /& #/--)33)/.

S. 18

COMMENTS

18.1 Duties of the CCI 4HE MAIN OBJECTIVE OF COMPETITION LAW IS TO PROMOTE ECONOMIC EFFICIENCY USING COMPETITION AS ONE OF THE MEANS OF ASSISTING THE CREATION OF MARKET RESPONSIVE TO CONSUMER PREFERENCES 4HE #OMPETITION !CT IS AIMED AT ADDRESSING THE EVILS AFFECTING THE ECONOMIC LANDSCAPE OF THE COUNTRY IN WHICH INTEREST OF THE SOCIETY AND CONSUMERS AT LARGE IS DIRECTLY INVOLVED /NE OF THE AVOWED OBJECTIVES OF THE !CT IS TO PROMOTE CONSUMERS WELFARE BY PREVENTING MARKET DISTORTIONS CAUSED BY SUCH ACTIONS AND AGREEMENTS OF THE ENTERPRISES WHICH MILITATE AGAINST THE COMPETITION AND CONSUMERS INTEREST 4HE COMPETITION LAW BY ITS VERY NATURE ENVISAGES THAT THERE ARE SITUATIONS WHERE THE #OMMISSION HAS A ROLE AND HAS TO CONTROL BEHAVIOUR OF THE ENTERPRISES IN THE MARKET PLACE IN ORDER TO ACHIEVE CONSUMER WELFARE 3ECTION OF THE !CT WHICH IS IN CONSONANCE WITH THE PREAMBLE OF THE !CT CASTS AN OBLIGATION ON THE ##) TO @ELIMINATE ANTI COMPETITIVE PRACTICES AND PROMOTE COMPETITION INTERESTS OF THE CONSUMERS AND FREE TRADE 4HE EXERCISE OF POWER UNDER 3ECTION IS SUBJECT TO OTHER PROVISIONS OF THE !CT 4HE AIM OF THE #OMMISSION IS THE INSTITUTION OF A SYSTEM OF UNDISTORTED COMPETITION WHICH IS COMMENSURATE TO THE PROMOTION OF THE INTERESTS OF THE CONSUMER 4HE PREAMBLE OF THE #OMPETITION !CT AND 3ECTION MANDATES THE #OMMISSION TO hPROTECT THE INTEREST OF CONSUMERSv AND IT IS IMPORTANT TO ENSURE THAT CONSUMERS SURPLUS IS NOT ADVERSELY IMPACTED

18.2 International Cooperation 4HE #OMMISSION MAY ENTER INTO ANY MEMORANDUM OR ARRANGEMENT WITH THE PRIOR APPROVAL OF THE #ENTRAL 'OVERNMENT WITH ANY AGENCY OF ANY FOREIGN COUNTRY !S MANDATED UNDER 3ECTION OF THE #OMPETITION !CT THE #OMMISSION HAS ENTERED INTO -EMORANDUM OF 5NDERSTANDING -/5 AFTER OBTAINING APPROVAL FROM THE 'OVERNMENT OF )NDIA WITH THE FOLLOWING COMPETITION AUTHORITIES TILL -ARCH &EDERAL 4RADE #OMMISSION &4# AND $EPARTMENT OF *USTICE $/* 53! $IRECTOR 'ENERAL #OMPETITION %UROPEAN 5NION %5 &EDERAL !NTIMONOPOLY 3ERVICE &!3 2USSIA

Competition Commission of India V Steel Authority of India Ltd. ; = TAXMANN COM 3#, 3# Ramakant Kini V Dr. L.H. Hiranandani Hospital #OMP , 2 ##) Excel Crop. Care Limited V Competition Commission of India !)2 3# Shamsher Kataria Informant V Honda Siel Cars India Ltd. #OMP,2 ##) Belaire Owner’s Association V DLF Ltd. ; = TAXMANN COM ##)


S. 19

#/-0%4)4)/. !#4

282

!USTRALIAN #OMPETITION AND #ONSUMER #OMMISSION !### #OMPETITION "UREAU #" #ANADA AND #OMPETITION AUTHORITIES OF THE &EDERATIVE 2EPUBLIC OF "RAZIL THE 2USSIAN &EDERATION THE 2EPUBLIC OF )NDIA THE 0EOPLE S 2EPUBLIC OF #HINA AND THE 2EPUBLIC OF 3OUTH !FRICA "2)#3 #OUNTRIES )N THE YEAR THE #OMMISSION PROCESSED TWO -/5S i.e. i -/5 WITH *APAN &AIR 4RADE #OMMISSION *&4# ii -/5 WITH !DMINISTRATIVE #OUNCIL FOR %CONOMIC $EFENSE #!$% "RAZIL 4HE #OMMISSION IS AWAITING THE GOVERNMENT APPROVAL TO SIGN THE -/5S !PART FROM THE -O5S MENTIONED ABOVE ##) IS ALSO A MEMBER OF )NTERNATIONAL #OMPETITION .ETWORK )#. "2)#3 AND HAS AN INDEPENDENT OBSERVER STATUS WITH 5.#4!$ 4HE ##) IS ALSO A MEMBER OF THE #OMPETITION #OMMITTEE OF /RGANIZATION FOR %CONOMIC #O OPERATION AND $EVELOPMENT /%#$ 4HE #OMMISSION HAS BEEN PROACTIVELY ENGAGING WITH 5NITED .ATIONS #ONFERENCE ON 4RADE AND $EVELOPMENT AND 5.#4!$ ;A 5. BODY RESPONSIBLE TO DEAL WITH DEVELOPMENT ISSUES PARTICULARLY INTERNATIONAL TRADE= AND 5NITED .ATIONS #ONFERENCE ON 4RADE AND $EVELOPMENT THE MAIN DRIVER OF DEVELOPMENT 5.#4!$

Inquiry into certain agreements and dominant position of enterprise.

19. 4HE #OMMISSION MAY INQUIRE INTO ANY ALLEGED CONTRAVENTION OF THE PROVISIONS CONTAINED IN SUB SECTION OF SECTION OR SUB SECTION OF SECTION EITHER ON ITS OWN MOTION OR ON a RECEIPT OF ;ANY INFORMATION IN SUCH MANNER AND= ACCOMPANIED BY SUCH FEE AS MAY BE DETERMINED BY REGULATIONS FROM ANY PERSON CONSUMER OR THEIR ASSOCIATION OR TRADE ASSOCIATION OR b A REFERENCE MADE TO IT BY THE #ENTRAL 'OVERNMENT OR A 3TATE 'OVERNMENT OR A STATUTORY AUTHORITY 7ITHOUT PREJUDICE TO THE PROVISIONS CONTAINED IN SUB SECTION THE POWERS AND FUNCTIONS OF THE #OMMISSION SHALL INCLUDE THE POWERS AND FUNCTIONS SPECIlED IN SUB SECTIONS TO

%NFORCED WITH EFFECT FROM 3UBSTITUTED FOR hA COMPLAINT v BY THE #OMPETITION !MENDMENT !CT W E F


283

#( )6 $54)%3 0/7%23 &5.#4)/.3 /& #/--)33)/.

S. 19

4HE #OMMISSION SHALL WHILE DETERMINING WHETHER AN AGREEMENT HAS AN APPRECIABLE ADVERSE EFFECT ON COMPETITION UNDER SECTION HAVE DUE REGARD TO ALL OR ANY OF THE FOLLOWING FACTORS NAMELY a CREATION OF BARRIERS TO NEW ENTRANTS IN THE MARKET b DRIVING EXISTING COMPETITORS OUT OF THE MARKET c FORECLOSURE OF COMPETITION BY HINDERING ENTRY INTO THE MARKET d ACCRUAL OF BENEFITS TO CONSUMERS e IMPROVEMENTS IN PRODUCTION OR DISTRIBUTION OF GOODS OR PROVISION OF SERVICES OR f PROMOTION OF TECHNICAL SCIENTIFIC AND ECONOMIC DEVEL OPMENT BY MEANS OF PRODUCTION OR DISTRIBUTION OF GOODS OR PROVISION OF SERVICES 4HE #OMMISSION SHALL WHILE INQUIRING WHETHER AN ENTERPRISE ENJOYS A DOMINANT POSITION OR NOT UNDER SECTION HAVE DUE REGARD TO ALL OR ANY OF THE FOLLOWING FACTORS NAMELY a MARKET SHARE OF THE ENTERPRISE b SIZE AND RESOURCES OF THE ENTERPRISE c SIZE AND IMPORTANCE OF THE COMPETITORS d ECONOMIC POWER OF THE ENTERPRISE INCLUDING COMMERCIAL ADVANTAGES OVER COMPETITORS e VERTICAL INTEGRATION OF THE ENTERPRISES OR SALE OR SERVICE NETWORK OF SUCH ENTERPRISES f DEPENDENCE OF CONSUMERS ON THE ENTERPRISE g MONOPOLY OR DOMINANT POSITION WHETHER ACQUIRED AS A RESULT OF ANY STATUTE OR BY VIRTUE OF BEING A 'OVERNMENT COMPANY OR A PUBLIC SECTOR UNDERTAKING OR OTHERWISE h ENTRY BARRIERS INCLUDING BARRIERS SUCH AS REGULATORY BARRIERS FINANCIAL RISK HIGH CAPITAL COST OF ENTRY MARKETING ENTRY BARRIERS TECHNICAL ENTRY BARRIERS ECONOMIES OF SCALE HIGH COST OF SUBSTITUTABLE GOODS OR SERVICE FOR CONSUMERS


S. 19

#/-0%4)4)/. !#4

284

i COUNTERVAILING BUYING POWER j MARKET STRUCTURE AND SIZE OF MARKET k SOCIAL OBLIGATIONS AND SOCIAL COSTS l RELATIVE ADVANTAGE BY WAY OF THE CONTRIBUTION TO THE ECO NOMIC DEVELOPMENT BY THE ENTERPRISE ENJOYING A DOMINANT POSITION HAVING OR LIKELY TO HAVE APPRECIABLE ADVERSE EFFECT ON COMPETITION m ANY OTHER FACTOR WHICH THE #OMMISSION MAY CONSIDER RELEVANT FOR THE INQUIRY &OR DETERMINING WHETHER A MARKET CONSTITUTES A hRELEVANT MARKETv FOR THE PURPOSES OF THIS !CT THE #OMMISSION SHALL HAVE DUE REGARD TO THE hRELEVANT GEOGRAPHIC MARKETv AND hRELEVANT PRODUCT MARKETv 4HE #OMMISSION SHALL WHILE DETERMINING THE hRELEVANT GEO GRAPHIC MARKETv HAVE DUE REGARD TO ALL OR ANY OF THE FOLLOWING FACTORS NAMELY a REGULATORY TRADE BARRIERS b LOCAL SPECIFICATION REQUIREMENTS c NATIONAL PROCUREMENT POLICIES d ADEQUATE DISTRIBUTION FACILITIES e TRANSPORT COSTS f LANGUAGE g CONSUMER PREFERENCES h NEED FOR SECURE OR REGULAR SUPPLIES OR RAPID AFTER SALES SERVICES 4HE #OMMISSION SHALL WHILE DETERMINING THE hRELEVANT PRODUCT MARKETv HAVE DUE REGARD TO ALL OR ANY OF THE FOLLOWING FACTORS NAMELY a PHYSICAL CHARACTERISTICS OR END USE OF GOODS b PRICE OF GOODS OR SERVICE


285

#( )6 $54)%3 0/7%23 &5.#4)/.3 /& #/--)33)/.

S. 19

c CONSUMER PREFERENCES d EXCLUSION OF IN HOUSE PRODUCTION e EXISTENCE OF SPECIALISED PRODUCERS f CLASSIFICATION OF INDUSTRIAL PRODUCTS COMMENTS

19.1 Inquiry by the CCI 3ECTION OF THE !CT PERMITS THE ##) TO CONDUCT AN ENQUIRY INTO CERTAIN KINDS OF AGREEMENTS AND DOMINANT POSITION OF ENTERPRISE 3UB SECTION OF 3ECTION EMPOWERS THE #OMMISSION TO INQUIRE INTO ANY ALLEGED CONTRAVENTION OF THE PROVISIONS CONTAINED IN SUB SECTION OF 3ECTION i.e. ANTI COMPETITIVE AGREEMENTS OR SUB SECTION OF 3ECTION i.e. ABUSE OF DOMINANT POSITION

19.2 Source of Information !S PER 3ECTION OF THE !CT THE #OMMISSION IS EMPOWERED TO INQUIRE IN TO ANY ALLEGED CONTRAVENTION OF 3ECTION OR 3ECTION EITHER SUO MOTU OR ON a 2ECEIPT OF INFORMATION FROM ANY PERSON CONSUMER OR THEIR ASSOCIATION OR TRADE ASSOCIATION OR b A REFERENCE MADE TO IT BY THE #ENTRAL 'OVERNMENT OR A 3TATE 'OVERNMENT OR A STATUTORY AUTHORITY 6IDE THE #OMPETITION !MENDMENT !CT THE PROVISIONS OF 3ECTION a WERE AMENDED SUBSTITUTING THE WORDS hRECEIPT OF A COMPLAINTv WITH hRECEIPT OF ANY INFORMATIONv 4HIS AMENDMENT CLEARLY REFLECTS THE LEGISLATIVE INTENTION OF EMPHASIZING THE INQUISITORIAL NATURE OF THE PROCEEDINGS OF THE #OMMISSION 4HE #OMMISSION DOES NOT ADJUDICATE lis BETWEEN INFORMANT AND THE OPPOSITE PARTY 2ATHER IT ACTS TO RESTORE COMPETITION IN THE MARKET 4HE #OMPETITION #OMMISSION OF )NDIA 'ENERAL 2EGULATIONS LAYS DOWN THE PROCEDURAL REQUIREMENTS TO FILE INFORMATION WITH THE #OMMISSION

#ONTENTS OF INFORMATION OR REFERENCE 2EG

3IGNING OF INFORMATION OR REFERENCE 2EG

0ROCEDURE FOR FILING OF INFORMATION OR REFERENCE 2EG

0ROCEDURE FOR FILING OF INFORMATION OR REFERENCE IN ELECTRONIC FORM 2EG

0ROCEDURE FOR SCRUTINY OF INFORMATION OR REFERENCE 2EG

0OWER OF #OMMISSION TO JOIN MULTIPLE INFORMATION 2EG

Western Coalfields Ltd. V SSV Coal Carriers (P.) Ltd. ; = TAXMANN COM ##)


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286

!MENDMENT OF INFORMATION 2EG

#ONFIDENTIALITY OF IDENTITY OF INFORMANT 2EG

&EE UNDER CLAUSE a OF SUB SECTION OF SECTION OF THE !CT 2EG

19.2.1 Locus to file information 4HE #OMPETITION !CT DOES NOT PRESCRIBE ANY QUALIFICATION FOR THE PERSON WHO WANTS TO FILE INFORMATION UNDER 3ECTION a 4HERE ARE NO CONDITIONS WHICH MUST BE FULFILLED BEFORE INFORMATION CAN BE FILED UNDER THE SECTION &URTHER THERE IS NOTHING IN THE PLAIN LANGUAGE OF 3ECTIONS AND READ WITH 3ECTION FROM WHICH IT CAN BE INFERRED THAT THE #OMMISSION HAS THE POWER TO REJECT THE PRAYER FOR AN INVESTIGATION INTO THE ALLEGATIONS INVOLVING VIOLATION OF 3ECTIONS AND ONLY ON THE GROUND THAT THE INFORMANT DOES NOT HAVE PERSONAL INTEREST IN THE MATTER OR HE APPEARS TO BE ACTING AT THE BEHEST OF SOMEONE ELSE 4HUS THE )NFORMANT NEED NOT NECESSARILY BE AN AGGRIEVED PARTY TO FILE A CASE BEFORE THE #OMMISSION &URTHER IT IS BECAUSE OF THE INQUISITORIAL SCHEME OF THE !CT THAT THE #OMMISSION IN APPROPRIATE CASES DEFENDS ITS ORDERS IN HIGHER FORUMS REGARDLESS OF THE FACT AS TO WHO BROUGHT SUCH CASE BEFORE IT WHICH IS NOT A NORMAL FEATURE IN ADVERSARIAL PROCEEDINGS

19.2.2 Informant vs. Complainant 4HE (ON BLE 3UPREME #OURT IN Samir Agarwal21 APPROVED THE AFORESAID POSITION REGARDING locus standi OF THE )NFORMANT 4HE !PEX #OURT RELIED ON THE FOLLOWING REASONING TO COME TO THE SAID CONCLUSION

! READING OF THE PROVISIONS OF THE #OMPETITION !CT AND #OMPETITION #OMMISSION OF )NDIA 'ENERAL 2EGULATIONS SHOWS THAT hANY PERSONv MAY PROVIDE INFORMATION TO THE ##) 4HE DEFINITION OF hPERSONv IN SECTION l OF THE #OMPETITION !CT IS AN INCLUSIVE ONE AND IS EXTREMELY WIDE INCLUDING INDIVIDUALS OF ALL KINDS AND EVERY ARTIFICIAL JURIDICAL PERSON 4HIS MAY BE CONTRASTED WITH THE DEFINITION OF hCONSUMERv IN SECTION f OF THE !CT WHICH MAKES IT CLEAR THAT ONLY PERSONS WHO BUY GOODS FOR CONSIDERATION OR HIRE OR AVAIL OF SERVICES FOR A CONSIDERATION ARE RECOGNISED AS CONSUMERS

! LOOK AT SECTION OF THE !CT WOULD SHOW THAT THE #OMPETITION !CT ORIGINALLY PROVIDED FOR THE hRECEIPT OF A COMPLAINTv FROM ANY PERSON CONSUMER OR THEIR ASSOCIATION OR TRADE ASSOCIATION 4HIS EXPRESSION WAS THEN SUBSTITUTED WITH THE EXPRESSION hRECEIPT OF ANY INFORMATION IN SUCH

3EE Surendra Prasad V Competition Commission of India ; = TAXMANN COM #!4 3EE ALSO Reliance Agency V Chemists & Druggists Association of Baroda ; = TAXMANN COM ##) !LSO SEE Harshita Chawla V WhatsApp Inc. ; = TAXMANN COM 3#, ##) 3AMIR !GRAWAL V #OMPETITION #OMMISSION OF )NDIA -,* 3#


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S. 19

MANNER ANDv BY THE !MENDMENT 4HIS SUBSTITUTION IS NOT WITHOUT SIGNIFICANCE 7HEREAS A complaint COULD BE FILED ONLY FROM A PERSON WHO WAS AGGRIEVED BY A PARTICULAR ACTION information MAY BE RECEIVED FROM ANY PERSON OBVIOUSLY WHETHER SUCH PERSON IS OR IS NOT PERSONALLY AFFECTED 4HIS IS FOR THE REASON THAT THE PROCEEDINGS UNDER THE !CT ARE PROCEEDINGS in rem WHICH AFFECT THE PUBLIC INTEREST 4HAT THE ##) MAY INQUIRE INTO ANY ALLEGED CONTRAVENTION OF THE PROVISIONS OF THE !CT ON ITS OWN MOTION IS ALSO LAID DOWN IN SECTION OF THE !CT &URTHER EVEN WHILE EXERCISING suomotu POWERS THE ##) MAY RECEIVE INFORMATION FROM ANY PERSON AND NOT MERELY FROM A PERSON WHO IS AGGRIEVED BY THE CONDUCT THAT IS ALLEGED TO HAVE OCCURRED 4HIS ALSO FOLLOWS FROM A READING OF SECTION OF THE !CT IN WHICH THE EARLIER EXPRESSION hCOMPLAINANT OR DEFENDANTv HAS BEEN SUBSTITUTED BY THE EXPRESSION hPERSON OR AN ENTERPRISE v SETTING OUT THAT THE INFORMANT MAY APPEAR EITHER IN PERSON OR THROUGH ONE OR MORE AGENTS BEFORE THE ##) TO PRESENT THE INFORMATION THAT HE HAS GATHERED

3ECTION OF THE !CT IS A DETERRENT AGAINST PERSONS WHO PROVIDE INFORMATION TO THE ##) mala fide OR RECKLESSLY INASMUCH AS FALSE STATEMENTS AND OMISSIONS OF MATERIAL FACTS ARE PUNISHABLE WITH A PENALTY OF UP TO RUPEES ONE CRORE WITH THE ##) BEING EMPOWERED TO PASS OTHER SUCH ORDERS AS IT DEEMS FIT

2EGULATION OF THE #OMPETITION #OMMISSION OF )NDIA 'ENERAL 2EGULATIONS DOES NOT REQUIRE THE INFORMANT TO STATE HOW HE IS PERSONALLY AGGRIEVED BY THE CONTRAVENTION OF THE #OMPETITION !CT !LSO REGULATION OF THE #OMPETITION #OMMISSION OF )NDIA 'ENERAL 2EGULATIONS SHOWS THAT PUBLIC INTEREST MUST BE FOREMOST IN THE CONSIDERATION OF THE ##) WHEN AN APPLICATION IS MADE TO IT IN WRITING THAT A PERSON OR ENTERPRISE HAS SUBSTANTIAL INTEREST IN THE OUTCOME OF THE PROCEEDINGS AND SUCH PERSON MAY THEREFORE BE ALLOWED TO TAKE PART IN THE PROCEEDINGS )T IS ALSO EXTREMELY IMPORTANT TO NOTE THAT REGULATION OF #OMPETITION #OMMISSION OF )NDIA 'ENERAL 2EGULATIONS BY WHICH THE ##) MUST MAINTAIN CONFIDENTIALITY OF THE IDENTITY OF AN INFORMANT ON A REQUEST MADE TO IT IN WRITING SO THAT SUCH INFORMANT BE FREE FROM HARASSMENT BY PERSONS INVOLVED IN CONTRAVENING THE !CT

4HE !CT HAS BEEN CONCEIVED TO FOLLOW AN INQUISITORIAL SYSTEM WHEREIN THE #OMMISSION IS EXPECTED TO INQUIRE CASES INVOLVING COMPETITION ISSUES in rem RATHER THAN ACTING AS A MERE ARBITER TO ASCERTAIN FACTS AND DETERMINE RIGHTS in personam ARISING OUT OF RIVAL CLAIMS BETWEEN PARTIES (ENCE THE )NFORMANT NEED NOT NECESSARILY BE AN AGGRIEVED PARTY TO FILE A CASE BEFORE THE ##)

XYZ V Alphabet Inc. ; = TAXMANN COM ##)


S. 19

#/-0%4)4)/. !#4

288

4HE #OMMISSION HAS BEEN VESTED WITH THE POWER TO suo motu TAKE COGNIZANCE OF ANY ALLEGED CONTRAVENTION OF 3ECTION OR 3ECTION OF THE !CT AND HOLD AN INQUIRY WHICH MEANS THAT THE #OMMISSION IS NOT REQUIRED TO WAIT FOR RECEIPT OF A REFERENCE FROM THE #ENTRAL OR THE 3TATE 'OVERNMENT OR A STATUTORY AUTHORITY OR A FORMAL INFORMATION BY SOMEONE FOR EXERCISING POWER UNDER 3ECTION READ WITH 3ECTION OF THE !CT )N A GIVEN CASE THE #OMMISSION MAY NOT ACT UPON AN INFORMATION FILED UNDER 3ECTION a BUT MAY suo motu TAKE COGNIZANCE OF THE FACTS CONSTITUTING VIOLATION OF 3ECTION OR 3ECTION OF THE !CT AND DIRECT AN INVESTIGATION 4HE #OMMISSION MAY ALSO TAKE COGNIZANCE OF THE REPORTS APPEARING IN PRINT OR ELECTRONIC MEDIA OR EVEN ANONYMOUS COMPLAINT REPRESENTATION SUGGESTING VIOLATION OF 3ECTIONS AND OF THE !CT AND ISSUE DIRECTION FOR INVESTIGATION UNDER 3ECTION 4HE #OMMISSION CAN TAKE suo-motu COGNIZANCE OF A CASE BASED EVEN ON AN ANONYMOUS COMPLAINT 4HE ONLY LIMITATION ON THE EXERCISE OF THAT POWER IS THAT THE #OMMISSION SHOULD FEEL PRIMA FACIE SATISFIED THAT THERE EXISTS A PRIMA FACIE CASE FOR ORDERING INTO THE ALLEGATION OF VIOLATION OF 3ECTION OR OF THE !CT

19.2.3 Reference from Statutory Authority !S PER 3ECTION w hSTATUTORY AUTHORITYv MEANS ANY AUTHORITY BOARD CORPORATION COUNCIL INSTITUTE UNIVERSITY OR ANY OTHER BODY CORPORATE ESTABLISHED BY OR UNDER ANY #ENTRAL 3TATE OR 0ROVINCIAL !CT FOR THE PURPOSES OF REGULATING PRODUCTION OR SUPPLY OF GOODS OR PROVISION OF ANY SERVICES OR MARKETS THEREFOR OR ANY MATTER CONNECTED THEREWITH OR INCIDENTAL THERETO 4HE #OMMISSION HAS TAKEN UP REFERENCES FROM %NFORCEMENT $IRECTORATE #!' #HIEF %NGINEER OF 2AILWAY $IVISION -ATERIAL -ANAGER 2AILWAY #OACH &ACTORY ETC 4HE $' WILL NOT BE TAKEN AS A @STATUTORY AUTHORITY UNDER 3 b !PART FROM THE STATUTORY !UTHORITY THE #ENTRAL 'OVERNMENT OR THE 3TATE 'OVERNMENT MAY MAKE A REFERENCE TO THE #OMMISSION TO INQUIRE INTO ANY ALLEGED CONTRAVENTION OF THE PROVISIONS CONTAINED IN SUB SECTION OF SECTION OR SUB SECTION OF SECTION 3EE Surendra Prasad V Competition Commission of India ; = TAXMANN COM #!4 !LSO SEE Harshita Chawla V WhatsApp Inc. ; = TAXMANN COM 3#, ##) Hindustan Petroleum Corporation Ltd., In re ; = TAXMANN COM 3#, ##) Manufacturers of Asbestos Cement Products, In re ; = TAXMANN COM 3#, ##) ReSheth & Co., Suo Moto #ASE .O OF #OMP,2 ##) South Eastern Railway V Orissa Concrete & Allied Industries Ltd. ; = TAXMANN COM 3#, ##) South Eastern Railway V Orissa Concrete & Allied Industries Ltd. ; = #,! ##) 3EE ALSO Dy. Chief Materials Manager V Faiveley Transport India Ltd. ; = TAXMANN COM #!4 .EW $ELHI ReDomestic Air Lines 2EFERENCE #ASE .O ; = #,! ##) #OMP ,2 ##)


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S. 19

19.3 Determination of AAEC !S PER 3ECTION OF THE #OMPETITION !CT THE #OMMISSION WHILE DETERMINING WHETHER AN AGREEMENT HAS !!%# SHALL HAVE DUE REGARD TO ALL OR ANY OF THE FOLLOWING FACTORS a CREATION OF BARRIERS TO NEW ENTRANTS IN THE MARKET b DRIVING EXISTING COMPETITORS OUT OF THE MARKET c FORECLOSURE OF COMPETITION BY HINDERING ENTRY INTO THE MARKET d ACCRUAL OF BENEFITS TO CONSUMERS e IMPROVEMENTS IN PRODUCTION OR DISTRIBUTION OF GOODS OR PROVISION OF SERVICES OR f PROMOTION OF TECHNICAL SCIENTIFIC AND ECONOMIC DEVELOPMENT BY MEANS OF PRODUCTION OR DISTRIBUTION OF GOODS OR PROVISION OF SERVICES !S DISCUSSED EARLIER AGREEMENTS BETWEEN COMPETITORS HORIZONTAL AGREEMENTS OF THE NATURE MENTIONED UNDER 3ECTION OF THE !CT ARE PRESUMED TO CAUSE !!%# )N SUCH CASES THE BURDEN OF PROOF TO PROVE !!%# IS NOT ON THE #OMMISSION RATHER IT SHIFTS TO THE OPPOSITE PARTIES TO PROVE THAT THE AGREEMENT DOES NOT CAUSE !!%# BY PROVIDING ADEQUATE EVIDENCE )N CASE SUCH AN EVIDENCE IS LED WHICH DISPELS THE PRESUMPTION THEN THE ##) SHALL TAKE INTO CONSIDERATION THE FACTORS MENTIONED IN 3ECTION OF THE !CT AND TO SEE AS TO WHETHER ALL OR ANY OF THESE FACTORS ARE ESTABLISHED )F THE EVIDENCE COLLECTED BY THE ##) LEADS TO ONE OR MORE OR ALL FACTORS MENTIONED IN 3ECTION IT WOULD AGAIN BE TREATED AS AN AGREEMENT WHICH MAY CAUSE OR IS LIKELY TO CAUSE AN APPRECIABLE ADVERSE EFFECT OF COMPETITION THEREBY COMPELLING THE ##) TO TAKE FURTHER REMEDIAL ACTION IN THIS BEHALF AS PROVIDED UNDER THE !CT 4HE ONLY EXCEPTION TO THIS PRESUMPTION OF !!%# VIS Ì VIS HORIZONTAL AGREEMENTS IS THE AGREEMENT ENTERED INTO BY WAY OF JOINT VENTURES IF SUCH AGREEMENT INCREASES EFFICIENCY IN PRODUCTION SUPPLY DISTRIBUTION STORAGE ACQUISITION OR CONTROL OF GOODS OR PROVISION OF SERVICES 6ERTICAL AGREEMENTS OF THE NATURE MENTIONED UNDER 3ECTION OF THE !CT ON THE OTHER HAND ARE NOT PRESUMED TO HAVE !!%# AND THE BURDEN TO PROVE SUCH EFFECT WILL BE ON THE #OMMISSION 4HE #OMMISSION WHILE DETERMINING !!%# CAN TAKE ANY OR ALL OF THE FACTORS LAID DOWN UNDER 3ECTION OF THE !CT #LAUSES a TO c OF SECTION DEALS WITH FACTORS WHICH RESTRICT THE COMPETITIVE PROCESS IN THE MARKETS WHERE THE AGREEMENTS OPERATE NEGATIVE FACTORS WHILE CLAUSES d TO f DEALS WITH FACTORS WHICH ENHANCE THE EFFICIENCY OF THE DISTRIBUTION PROCESS AND CONTRIBUTE TO CONSUMER WELFARE POSITIVE FACTORS !N AGREEMENT WHICH CREATES BARRIERS TO ENTRY MAY ALSO INDUCE IMPROVEMENTS IN PROMOTION OR DISTRIBUTION OF GOODS OR VICE VERSA 4HUS WHETHER AN AGREEMENT

Rajasthan Cylinders and Containers Limited V Union of India 3#!,%


INDIAN COMPETITION LAW Author :

GAUTAM SHAHI, SUDHANSHU KUMAR

Publisher: TAXMANN Edition :

1st Edition

ISBN No.: 9789390831784 Date of Publication: July 2021

Rs. 1695

Description: Taxmann's Indian Competition Law is a section-wise commentary on Competition Law. What sets this book apart is the unique combination of the study of both substantive and procedural elements of Competition Law in India. The objective of this book is three-fold: Focusing on Indian Competition Law, elucidating the Indian jurisprudence and then comparing it with positions taken by European Union (EU) and the United States This book does not get restricted to the major provisions/broader issues of competition law but also highlights economic, technical and administrative concepts/issues that are relevant in the practical application and interpretation of competition law This book does not become a technical treatise but a document that a wider audience can read and understand, including lawyers, judges, academicians, lawmakers, market regulators, & entrepreneurs.

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