COMPETITION LAW IN INDIA

INTRODUCTION:

Competition Law is a law which enhances fair market competition by curbing monopolies and restricting anti-competitive behaviour by companies and enterprises. Competition Law exists to promote freedom of trade in markets and to protect the interests of the consumers. It is known as Antitrust Law in the United States and Anti-Monopoly Law in China and Russia. And it is called as Competition Law in United Kingdom and India.

HISTORY OF C.L. IN INDIA:

Competition Law formulated in India, when the first Competition Law, namely the Monopolies and Restrictive Trade Practices Act (MRTP) which was enacted in 1969. In the year 1991, there were Economic Reforms and later India adopted the vital economic concepts of Liberalization, Privatization and Globalization and felt that the MRTP Act, 1969 was obsolete in many aspects and brought in the new Act of The Competition Act, 2002 which was established by the Central Government of India and came into effect from 14 th October 2003. It was subsequently amended by the Competition (Amendment) Act, 2007.

COMPETITION COMMISSION OF INDIA (CCI):

The Competition Act, 2002 follows the philosophy of modern competition laws. The Act prohibits anti-competitive agreements, abuse of dominant position by enterprises and regulates combinations of aspects such as acquisition, acquiring of control and merger and acquisition, which causes appreciable adverse effect on competition within India.

The objectives of this Act are sought to be achieved through the Competition Commission of India (CCI), which has been established by the Central Government with effect from 14 October 2003. CCI consists of a Chairperson and 6 Members appointed by the Central Government. It is the duty of the Commission to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade in the markets of India. The Commission is also required to give opinion on competition issues on a reference received from a statutory authority established under any law and to undertake competition advocacy, create public awareness and impart training on competition issues.

CCI is a quasi-judicial organ which performs adjudicatory functions in determining cases relating to anti-competitive agreements, abuse of dominant position by enterprises and passing cease and desist orders, imposing hefty penalties.

COMPETITION APPELLATE TRIBUNAL (Compat):

The Competition Appellate Tribunal is a statutory organization established under the provisions of the Competition Act, 2002 to hear and dispose of appeals against any direction issued or decision made or order passed by the Competition Commission of India. The Appellate Tribunal shall also adjudicate on claim for compensation that may arise from the findings of the Competition Commission of India or the orders of the Appellate Tribunal in an appeal against any findings of the Competition Commission of India.

The Central Government has set up the Appellate Tribunal on 15th May, 2009 having its Headquarter at New Delhi. Besides, the Chairperson, the Appellate Tribunal shall consist of not more than two Members to be appointed by the Central Government. The Chairperson of the Appellate Tribunal shall be a person, who is, or has been a Judge of the Supreme Court or the Chief Justice of a High Court. A Member of the Appellate Tribunal shall be a person of ability, integrity and standing having special knowledge of, and professional experience of not less than twenty-five years in, competition matters, including competition law and policy, international trade, economics, business, commerce, law, finance, accountancy, management, industry, public affairs, administration or in any other matter which in the opinion of the Central Government, may be useful to the Appellate Tribunal.

RECENT DEVELOPMENTS IN CCI:

To support and strengthen its human resource capabilities, the Competition Commission is looking to engage a dozen research professionals in the area of law. The fair trade regulatory body, which has the mandate to keep a tab on anti-competitive practices in the market place, in recent times has been recruiting people for various posts, including at the director and joint director levels.

The 12 "research associates/professionals" would work in the area of law and assist the regulator in carrying out its functions under the Competition Act. According to the CCI, these 12 people would be hired initially for a period of one year and the tenure could be extended depending on requirements. The

watchdog is also working on capacity building activities mainly to improve investigation skills of the officers who are into enforcing the competition norms.

References:

1. The Competition Act, 20022. The Competition (Amended) Act, 20073. www.cci.gov.in 4. www.compat.nic.in 5. www.legallyindia.com 6. www.businessstandard.com 7. www.economictimes.com