Competition Act, 2002: Power and Duties

Introduction

Competition act, 2002

The competition bill, 2001 was introduced in Lok Sabha on 6 august 2001 and passes on December 2002 to replace the MRTP act, 1969.

The act is also acknowledged as competition act 2002 or antitrust law. 

The objective of the act to prohibits anti competitive agreements, abuse of the dominant position by enterprises and regulates the combinations which causes or likely to cause adverse effect on competition with in India

This act extends to whole of India except the state of Jammu and Kashmir.

The competition act, 2002 was amended by the competition (amendment) act 2007 and once more by means of the competition (amendment) act, 2009.

• This act is established a commission, protect the interest of the consumers ans ensure freedom of trade in markets in India-
• To ban the abusive situation of monopoly
• To supply the opportunity to the entrepreneur for the competition in the market.
• To have the international sustain as well as enforcement network crosswise the world.
• To avert as of anti-competition practices moreover to uphold a fair and healthy competition in the marketplace.

Competition commission of India 

It is a statutory body of the government of India responsible for enforcing the competition act, 2001 throughout India and to prevent activities that have an appreciable adverse effect on the competition in India. It was well-known established on 14 October 2003.

It consists of a chairperson who is to be assisted by two and maximum of ten other members. 

The commission also required to give an opinion on competition on a reference received from a statutory authority. Also undertake to advocacy of commission , create public awareness and impact training on competition basis.

Power of Competition commission of India 

• To eliminate practices having adverse affect on competition, promotes and sustains competitions, project interests of consumers and ensure freedom of trade by other participants.
• Inquire into certain agreement and dominant position of the enterprise.
• Section 20 of the act empowers the Competition commission of India to inquire into combination or acquisition to know whether they have appreciable adverse effect on competition
• Reference of issue by a statutory authority under section 21
• Reference made by commission in the course of proceeding if it is contravention of the provisions of the competition act of India
• Section 33 empowers to issue interim orders in case of anticompetitive agreements
• Competition advocacy section 49 of the act provides that central or state government may make reference to commission for the opinion. But that is not binding on the government.

Duties of Competition commission of India under this act:-

• put an end to practices having unfavorable effect on competition
• To encourage and maintain competition
• defend the interests of consumers
• make sure freedom of trade in the markets of India

Director General:-

Director General is a person appointed by the competition commission of India under the provision of the competition act, 2002.  

The duty of the director general under this act:-

The Director General shall in the entire matters under his charge, have powers assigned to him all the way through the Governing Body. 

He shall exercise these powers under the direction, superintendence and control of the Society, President and Vice President and subject to these rules and bye-laws.

Section 33:- power to issue interim orders

The commission may by order, temporarily restrain any party from carrying on such act until the conclusion of any such inquiry or until further orders, without giving notice to such party where it deems necessary. Section 33 empowers to issue interm orders in case of anticompetitive agreements.

Section 34:- the power to award competition

In the section 34 of this act, the anti-competitive agreements are agreements in the midst of competitors in the direction of prevent, restrict or distort competition. Section 34 under the this Act disallow agreements, decisions and practices that are anti-competitive.

Section 35:-

person or an enterprise or the Director General may either appear in person or authorize one or more chartered accountants or company secretaries or cost accountants or legal practitioners or else any of his or its officers to there his or its case sooner than the Commission.

Explanation

For the purposes of this section

(a) The term "Chartered accountant" stand for a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, furthermore who has get hold of a certificate of practice under sub-section (1) of section 6 of that Act;

(b) the term "Company secretary" meaning is a company secretary as describes in the clause (c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980 as well as who has get hold of a certificate of practice under sub-section (1) of section 6 of that Act;

(c) the term "cost accountant" meaning is a cost accountant as discussed in the clause (b) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959 along with who has get hold of a certificate of practice under sub- section (1) of section 6 of that Act;

(d) The term "Legal practitioner" meaning is an advocate, or an attorney of any High Court, as well as it consist of a pleader in practice.

Also in this, the person previously working in the Departments of Customs or Central Excise or Narcotics and has withdraw or resigned as of such employment subsequent to having cause to be service in any capability in one or more of the said Departments for not below ten years in the cumulative

Section 36:- the power of Commission to regulate its own procedure

1. In the discharge of its functions, the Commission shall be guided by the principles of natural justice and, subject to the other provisions of this Act and of any rules made by the Central Government; the Commission shall have the powers to regulate its own process.
2. The Commission shall have meant for the functions of releasing its functions under competition Act, the same powers at the same time as are vested in a Civil Court under the Code of Civil Procedure, whereas trying a suit, with respect of the subsequent issues, 

They are like:-

• Summoning and enforcing the attendance of any person and examining him on oath;
• Requiring the discovery and production of documents;
• The getting evidence on affidavit;
• Issuing the commissions intended for the examination of witnesses or else documents;
• Apply for the subject matter to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872, in this any public record or document or else copy of such record or document commencing any office.

3. In this section, the Commission may plead such experts, from the fields of economics, commerce, accountancy, international trade or from any other discipline while it considers compulsory to support the Commission in the achieve of any examination through it.
4. The Commission may also direct any person

• toward bring into being previous to the Director General or the Secretary or an officer certified through it, such books, or other documents in the custody or under the organize of such person thus heading for as may be particular or else explained in the way, as well as being documents connecting to any trade, the examination of which may be obligatory meant for the reasons of this Act
• (b) Toward the provide to the Director General or the Secretary or any other officer authoritative through it, as respects the trade or such other information as may be in his possession with relation to the trade approved on by such person, as may be obligatory for the rationale of this Act.

Section 37:- 

Omitted

Section 38:- Rectification of order

(1) Amid an observation to rectifying any mistake apparent from the record, the Commission may modify any order passed through it under the provisions of this Act.

(2) Subject matter to the other provisions of the competition Act, the Commission may create:-

(a) In this an amendment under sub-section (1) of its personal action;

(b) And an amendment for rectifying whichever such fault which has been carried to its notice by any party to the order.

Explanation.--For the removal of doubts, it is hereby declared that the Commission shall not, while rectifying any fault noticeable as of record, modify substantive part of its order passed in this provision.

Section 39:- 

Refusal to deal: A manufacturer refuses to sell to distributor or retailer. 

• An exclusive dealing: A maker grants another firm an exclusive right in the direction of deal out a product. 

• An exclusive Territory: A maker grants an exclusive territory to a seller and no other is allowable in the direction of sell in that territory. 

• The retail Price Maintenance: A maker sets a minimum price underneath which a retailer cannot sell.

41:- Director 

Director General to investigate contraventions.—

(1) In this act, the Director General shall, when as a result directed by the Commission, support the Commission in examining into any contravention of the provisions of this Act or any rules or regulations made hereunder.

(2) The Director General shall have the entire powers while they are granted in the lead of the Commission.

(3) devoid of prejudice to the provisions of sub-section (2), Sections 240 and 240-A of the Companies Act, 1956 (1 of 1956), thus far since may be, shall be appropriate to an investigation made by the Director General or any further person investigating under his authority, like they be valid to an inspector appointed under this Act.

Reference:-

https://www.slideshare.net/shrinivas1648/competition-act2002business-law

https://lawgist.in/competition-act/36