Professional Documents
Culture Documents
Text
Disinvestments Portfolio
FIRM inv.
New areas
Infr. to pvt. sector Imports
deregulation
The Competition Act 2002
The MRTP Act has been replaced by the
Competition Act 2002 on the recommendations
of the SVS Raghvan Committee.
It extends to whole of India except the state of
Jammu and Kashmir
Act empowers it to exempt any class of
enterprise from the Act in interest of public or
national security
Continued---
No civil court has jurisdiction to entertain any
suit or proceeding which the competition
commission established under the act is
empowered to determine.
Main Provisions of the Act
1. Prohibition of Anti-Competitive Agreements
1. Determining purchase/sale price (directly/indirectly)
2. Limiting/controlling production, supply, markets,
technical development, investment or provision of
services.
3. Sharing the market or source of production or
provision or services by allocating geographical areas.
4. Tie-in arrangements; exclusive supply
arrangements.
2. Prohibition of Abuse of Dominant
Position
Imposes unfair or discriminatory condition or
price purchase or sale of goods or service
Restricts production of goods or services or
market in respect of these
Indulges in practices which deny market
access to others
3. Regulation of Mergers and
Acquisitions
The following threshold apply for determining
whether a merger or acquisition becomes a
‘combination’ subject to scrutiny:
1.Enterprise with operations in India:
Rs. 1,000 crore asset value or Rs. 3,000 crore
turnover
-Enterprise with global operations
$ 500 million asset value or $1,500 million
turnover
Continued---
-Groups of Companies with operations in India
Rs. 4000 crore or Rs. 12000 crore turnover
-Groups of Companies with global operations
$ 2 billion assets value or $ 6 billion turnover