Impact Of Competition Law In Global Trade

By Author: Adv. Shirish G. Shigwan
Total Articles: 3
Comment this article

EXTEND OF MRTP - The MRTP Act extends to the whole of India . Unless the Central Government otherwise directs, this act shall not apply to:
1. Any undertaking owned or also controlled by the Government Company,
2. Undertakings owned or also controlled by the Government,
3. Any undertaking owned or controlled by a corporation (not being a company established by or under any Central, Provincial or State Act
4. Any trade union or other association of workmen or employees formed for their own reasonable protection as such workmen or also employees,
5. Undertaking engaged in an industry, the management of which has been taken over by any person or body of persons under powers by the Central Government,
6. Undertaking owned by a co-operative society formed and also registered under any Central, Provincial or state Act,
7. Any financial institution.

Distinction between Monopolistic Trade Practices and Restrictive Trade Practices as under:

Monopolistic Practices: The practices acquired by any organisation and also undertaking, on account of their control over market, which harm ...
... the public interest. It includes:
A. Charging unreasonably high prices.
B. Policy to decrease existing and also potential competition.
C. Restricting capital investment and also technical development.

Restrictive Practices: Restrictive practices means act which restrict or distort or also prevent competition in market. Few dominant firm adopt these to harm the competition. It includes:
A. Restricting the sale and also purchase of goods from specified person.
B. Tie-in-sale, i.e. forcing the customer to purchase a particular product
C. Restricting areas of sale.
D. Boycott
E. Formation of cartels
F. Predatory pricing

Anti-Competitive Agreements under the Competition Act

HORIZONTAL AGREEMENTS- Horizontal agreements are arrangements between enterprises at the same stage of production. Section 3(3) of the Act provides that such agreements includes cartels, engaged in identical or similar trade of goods or provision of services, which-
1. Directly or indirectly determines purchase or sale prices
2. Limits or controls production, supply
3. Shares the market or source of production
4. Directly or indirectly results in bid rigging or collusive bidding

VERTICAL AGREEMENTS- Vertical agreements are those agreements which are entered into between two or more enterprises operating at different levels of production. For instance between suppliers and dealers. Other examples of anti-competitive vertical agreements include:
• Exclusive supply agreement & refusal to deal
• Resale price maintenance
• Tie-in-arrangements
• Exclusive distribution agreement

Conclusion
With the change in the International economic environment the competition standards of each country also changes. Our Competition Act of 2002 though has tried its level best to curb the anti-competitive arrangements in our country but as of now it is not successful to achieve its goal. We will discussed various other aspect in detail simultaneously in upcoming articles by the author