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HISTORICAL CONTEXT State Control • The Industrial (Development & Regulation) Act, 1951 • Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act), Liberalization • Post 1991, shift in focus from curbing monopolies to promoting competition 2002 • Competition Act 2002 2003 • Competition Commission of India (CCI) 2009 • Competition Appellate Tribunal Docsity.com COMPETITION POLICY INSTRUMENTS TRADE POLICY CONSUMER POLICY ENVIRONMENT POLICY INTELLECTUAL PROPERTY POLICY INVESTMENT POLICY LABOUR POLICY REGIONAL DEVELOPMENT POLICY REGULATORY POLICY MISC NEED FOR A SINGLE COMPREHENSIVE COMPETITION LAW Docsity.com NATIONAL COMPETITION POLICY Docsity.com IMPLEMENTATION N CP National Competition Policy Council(NCPC) Competition Impact Assesment(CIA) Oversight Mechanism (Competition Law ) 1. Competition Commision of India (CCI) 2. Competition Appelate Tribunal (CAT) Docsity.com COMPETITION IMPACT ASSESMENT LIMITS THE NUMBER OR RANGE OF SUPPLIERS • Industrial policy enforcing state monopoly for certain sectors LIMITS THE ABILITY OF SUPPLIERS TO COMPETE • Preferential treatment to state owned enterprises, regulating price of a commodity REGULATORY AND POLICY BARRIERS • Policy uncertainty through costly, frequently changing or time consuming regulations LIMITS THE CHOICES AND INFORMATION AVAILABLE TO CUSTOMER • High cost of mobility between suppliers of a particular goods or services Docsity.com zi
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Particulars United States Indonesia India Anti-competitive Agreement •Monopoly power alone, without some act of wrongful exclusion or other legally cognizable anticompetitive conduct, is not prohibited •The action should be proven •Prohibited agreements include oligopoly, price determination, division of territory, boycott, cartels, trust, oligopoly, vertical integration, closed agreements •Prohibits an enterprise or a person from entering into any agreement in respect of production, supply, distribution, storage, acquisition, or control of goods or provision of services that causes or is likely to cause an appreciable adverse effect on competition Docsity.com Particulars United States Indonesia India Dominant Position •2/3rd market share •Unacceptable conduct •one entrepreneur holds more than 50 % of the market share or where two or three entrepreneurs holds more than 75 % •Discretionary for CCI Cartel •Price-fixing, market division, bid rotation etc. •Criminal action +Fines •Administrative and criminal sanctions •Only fine upto 3 times the profits made from cartel Enforcement Bodies •Anti-trust Division of Department of Justice •Federal Trade Commission •Supervisory Commission for Business Competition (KPPU) •CCI •Competition Appellate Tribunals Separation of Power •Conflict between regulators •Separated investigation and trial •Separated investigation and trial Docsity.com
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AREAS OF IMPROVEMENT • The NCPC, post its in-depth analysis, can better develop its understanding of competition problems and associated costs by publicising its findings that will inform and mobilise relevant interest groups to lobby in favour of reform • No consensus among central ministries and the lack of capacity to carry out assessments. • Jurisdictional overlap between NCPC and CCI • Need for greater coordination among various regulators and between competition regulator and sectoral regulator Docsity.com TRANSPORT AGRICULTURE INDUSTRY POWER Docsity.com IMPACT ASSESMENT : AGRICULTURE • Farmers will get a legitimate share in the final value of their produce • Facilitate free movement of agricultural produce between the States • Competition in supply of inputs such as seeds, fertilizers etc • Realistic pricing, conservation of input use and more rational crop selection. Docsity.com
