Duties and functions of Commission under Competition Act

Duties of Commission.

Subject to the provisions of this Act, it shall be the duty of the Commission to eliminate practices having adverse result on competition, promote and sustain competition, defend the interests of customers, and guarantee freedom of trade carried on by alternative participants, in markets in India: on condition that the Commission could, for the aim of discharging its duties or performing arts its functions underneath this Act, enter into any memo or arrangement, with the previous approval of the Central Government, with any agency of any foreign country.

 Inquiry into bound agreements and dominant position of enterprise.

﴾1﴿ The Commission could treat any alleged dispute of the provisions contained in sub‐section ﴾1﴿ of section three or subsection

﴾1﴿ of section four either on its own motion or on—

﴾a﴿ receipt of a criticism, in the midst of such fee as is also determined by laws, from any individual, client or their association or trade association. 

﴾b﴿ a reference created to that by the Central Government or a authorities or a statutory authority.

﴾2﴿ Without prejudice to the provisions contained in sub‐section ﴾1﴿, the powers and functions of the Commission shall embody the powers and functions laid out in sub‐sections ﴾3﴿ to ﴾7﴿.

﴾3﴿ The Commission shall, whereas determinant whether or not Associate in Nursing agreement has Associate in Nursing considerable adverse result on competition underneath section three, have due respect to all or any of the subsequent factors, namely: 

﴾a﴿ creation of barriers to new entrants within the market;

﴾b﴿ driving existing competitors out of the market;

﴾c﴿ foreclosure of competition by impeding entry into the market;

﴾d﴿ accrual of advantages to consumers;

﴾e﴿ improvements in production or distribution of products or provision of services;

﴾f﴿ promotion of technical, scientific and economic development by suggests that of production or distribution of products or provision of services.

﴾4﴿ The Commission shall, whereas inquiring whether or not Associate in Nursing enterprise enjoys a dominant position or not underneath section four, have due respect to all or any of the subsequent factors, namely:

﴾a﴿ market share of the enterprise;

﴾b﴿ size and resources of the enterprise;

﴾c﴿ size and importance of the competitors;

﴾d﴿ economic power of the enterprise together with industrial benefits over competitors;

﴾e﴿ vertical integration of the enterprises or sale or service network of such enterprises;

﴾f﴿ dependence of customers on the enterprise;

﴾g﴿ monopoly or dominant position whether or not noninheritable as a results of any statute or by virtue of being a Government company or a public sector enterprise or otherwise.

﴾h﴿ entry barriers together with barriers like restrictive barriers, money risk, high opportunity cost of entry, promoting entry barriers, technical entry barriers, economies of scale, high price of substitutable merchandise or service for consumers;

﴾i﴿ countervailing shopping for power;

﴾j﴿ market structure and size of market;

﴾k﴿ social obligations and social costs;

﴾l﴿ relative advantage, by manner of the contribution to the economic development, by the enterprise enjoying a dominant position having or probably to possess considerable adverse result on competition;

﴾m﴿ any alternative issue that the Commission could take into account relevant for the inquiry.

﴾5﴿ For determinant whether or not a market constitutes a “relevant market” for the needs of this Act, the Commission shall have due respect to the “relevant geographic market” and “relevant product market”.

﴾6﴿ The Commission shall, whereas determinant the “relevant geographic market”, have due respect to all or any of the subsequent factors, namely: 

﴾a﴿ regulatory trade barriers;

﴾b﴿ local specification requirements;

﴾c﴿ national procurance policies;

﴾d﴿ adequate distribution facilities;

﴾e﴿ transport costs;

﴾f﴿ language;

﴾g﴿ consumer preferences;

﴾h﴿ need for secure or regular provides or speedy after‐sales services.

﴾7﴿ The Commission shall, whereas determinant the “relevant product market”, have due respect to all or any of the subsequent factors, namely: 

﴾a﴿ physical characteristics or end‐use of goods;

﴾b﴿ price of products or service;

﴾c﴿ consumer preferences;

﴾d﴿ exclusion of in‐house production;

﴾e﴿ existence of specialized producers;

﴾f﴿ classification of commercial product.

 Inquiry into combination by Commission.

﴾1﴿ The Commission could, upon its own data or info concerning acquisition mentioned in clause

﴾a﴿ of section five or exploit of management mentioned in clause ﴾b﴿ of section five or merger or uniting referred in clause

﴾c﴿ of that section, treat whether or not such a mix has caused or is probably going to cause Associate in Nursing considerable adverse result on competition in India: on condition that the Commission shall not initiate any inquiry underneath this sub‐section once the ending of 1 year from the date on that such combination has taken result.

﴾2﴿ The Commission shall, on receipt of a notice underneath sub‐section ﴾2﴿ of section six or upon receipt of a reference underneath sub‐section ﴾2﴿ of section twenty one, inquire whether or not a mix mentioned in this notice or reference has caused or is probably going to cause Associate in Nursing considerable adverse result on competition in Bharat.

﴾3﴿ Notwithstanding something contained in section five, the Central Government shall, on the ending of a amount of 2 years from the date of commencement of this Act and thenceforth each 2 years, in consultation with the Commission, by notification, enhance or scale back, on the premise of the wholesale indicant or fluctuations in charge per unit of rupee or foreign currencies, the worth of assets or the worth of turnover, for the needs of that section.

﴾4﴿ For the needs of determinant whether or not a mix would have the result of or is probably going to possess Associate in Nursing considerable adverse result on competition within the relevant market, the Commission shall have due respect to all or any of the subsequent factors, namely: 

﴾a﴿ actual and potential level of competition through imports within the market;

﴾b﴿ extent of barriers to entry into the market;

﴾c﴿ level of combination within the market;

﴾d﴿ degree of countervailing power within the market; 

Reference by statutory authority.

﴾1﴿ Where within the course of a continuing before any statutory authority a problem is raised by any party that any call that such statutory authority has taken or proposes to require, is or would be, contrary to any of the provisions of this Act, then such statutory authority might build a reference in respect of such issue to the Commission.

﴾2﴿ On receipt of a reference beneath sub‐section ﴾1﴿, the Commission shall, once hearing the parties to the proceedings, offer its opinion to such statutory authority that shall thenceforth pass such order on the problems spoken in this subsection because it deems fit: providing the Commission shall offer its opinion beneath this section at intervals sixty days of receipt of such reference.

Conferences of Commission. 

﴾1﴿ The Commission shall meet at such times and such places, and shall observe such rules of procedure in relevancy the group action of business at its conferences as could also be provided by laws.

﴾2﴿ The presiding officer, if for any reason, is unable to attend a gathering of the Commission, the senior‐most Member gift at the meeting, shall command at the meeting.

﴾3﴿ All queries that return up before any meeting of the Commission shall be determined by a majority of the Members gift and pick, associated within the event of an equality of votes, the presiding officer or in his absence, the Member presiding, shall have a second or casting vote: providing the assemblage for such meeting shall be 3 Members.]"

22. Benches of Commission. 

﴾1﴿ The jurisdiction, powers and authority of the Commission could also be exercised by Benches therefrom.

﴾2﴿ The Benches shall be planted by the presiding officer and every Bench shall accommodates not but 2 Members.

﴾3﴿ Every Bench shall accommodates a minimum of one Judicial Member. rationalization .

For the needs of this subsection, “Judicial Member” means that a Member WHO is, or has been, or is qualified to be, a decide of a supreme court.

﴾4﴿ The Bench over that the presiding officer presides shall be the Principal Bench and also the alternative Benches shall be called the extra Benches.

﴾5﴿ There shall be planted by the presiding officer one or a lot of Benches to be referred to as the Mergers Bench or Mergers Benches, because the case could also be, completely to handle matters spoken in sections five and six.

﴾6﴿ The places at that the Principal Bench, alternative extra Bench or Mergers Bench shall usually sit shall be like the Central Government might, by notification, specify.".

Procedure for inquiry on complaints beneath section nineteen.

﴾1﴿ On receipt of a criticism or a reference from the Central Government or a authorities or a statutory authority or on its own data or data, beneath section nineteen, if the Commission is of the opinion that there exists a clear case, it shall direct the Director General to cause associate investigation to be created into the matter.

﴾2﴿ The Director General shall, on receipt of direction beneath sub‐section ﴾1﴿, submit a report on his findings at intervals such amount as could also be such by the Commission.

﴾3﴿ wherever on receipt of a criticism beneath clause ﴾a﴿ of sub‐section ﴾1﴿ of section nineteen, the Commission is of the opinion that there exists no clear case, it shall dismiss the criticism and will pass such orders because it deems match, together with imposition of prices, if necessary.

﴾4﴿ The Commission shall forward a replica of the report spoken in sub‐section ﴾2﴿ to the parties involved or to the Central Government or the authorities or the statutory authority, because the case could also be.

﴾5﴿ If the report of the Director General relates on a criticism and such report recommends that there's no resistance of any of the provisions of this Act, the litigator shall lean a chance to rebut the findings of the Director‐General.

﴾6﴿ If, once hearing the litigator, the Commission agrees with the advice of the Director General, it shall dismiss the criticism.

﴾7﴿ If, once hearing the litigator, the Commission is of the opinion that additional inquiry is named for, it shall direct the litigator to proceed with the criticism.

﴾8﴿ If the report of the Director General relates on a reference created beneath sub‐section ﴾1﴿ and such report recommends that there's no resistance of the provisions of this Act, the Commission shall invite comments of the Central Government or the authorities or the statutory authority, because the case could also be, on such report and on receipt of such comments, the Commission shall come back the reference if there's no clear case or proceed with the reference as a criticism if there's a clear case.

﴾9﴿ If the report of the Director General spoken in sub‐section ﴾2﴿ recommends that there's resistance of any of the provisions of this Act, and also the Commission is of the opinion that additional inquiry is named for, it shall discuss such resistance in accordance with the provisions of this Act.

Orders by Commission once inquiry into agreements or abuse of dominant position.

Where once inquiry the Commission finds that associate degreey agreement referred to in section 3 or action of Associate in Nursing enterprise throughout a dominant position, is in question of section 3 or section four, as a result of the case is additionally, it ought to pass all or any of the following orders, namely: 

﴾a﴿ direct any enterprise or association of enterprises or person or association of persons, as a result of the case is additionally, involved in such agreement, or abuse of dominant position, to discontinue and to not enter such agreement or discontinue such abuse of dominant position, as a result of the case may be.

﴾b﴿ impose such penalty, as a result of it may hold match that shall be no quite ten per cent. of the standard of the turnover for the last three preceding financial years, upon each of such person or enterprises that unit parties to such agreements or abuse: provided that simply just in case any agreement referred to in section 3 has been entered into by any mix, 

the Commission shall impose upon each producer, seller, distributor, dealer or service provider closed during this mix, a penalty appreciate thrice of the amount of profits created out of such agreement by the mix or ten per cent. of the standard of the turnover of the mix for the last preceding three financial years, whichever is higher;

﴾c﴿ award compensation to parties in accordance with the provisions contained in section 34;

﴾d﴿ direct that the agreements shall stand modified to the extent and inside the way as is additionally per the order by the Commission.

﴾e﴿ direct the enterprises concerned to abide by such totally different orders as a result of the Commission may pass and befits the directions, yet as payment of costs, if any;

﴾f﴿ recommend to the Central Government for the division of academic degree enterprise enjoying dominant position;

﴾g﴿ pass such totally different order as a result of it may hold match.

Division of enterprise enjoying dominant position.

﴾1﴿ The Central Government, on recommendation beneath clause ﴾f﴿ of section twenty seven, may, however one thing contained within the different law for this smart, by order in writing, direct division of academic degree enterprise enjoying dominant position to verify that such enterprise does not abuse its dominant position.

﴾2﴿ In specific, and whereas not prejudice to the generality of the preceding powers, the order referred to in sub‐section ﴾1﴿ may provide for all or any of the following matters, namely: 

﴾a﴿ the transfer or vesting of property, rights, liabilities or obligations;

﴾b﴿ the adjustment of contracts either by discharge or reduction of any liability or obligation or otherwise;

﴾c﴿ the creation, allotment, surrender or cancellation of any shares, stocks or securities;

﴾d﴿ the payment of compensation to someone World Health Organization suffered any loss due to dominant position of such enterprise.

﴾e﴿ the formation or ending of academic degree enterprise or the amendment of the memoranda of association or articles of association or the opposite instruments regulation the business of any enterprise;

﴾f﴿ the extent to it, and additionally the circumstances throughout that, provisions of the order poignant academic degree enterprise {is additionally is additionally} altered by the enterprise and also the registration thereof;

﴾g﴿ any totally different matter which may be necessary to permit impact to the division of the enterprise.

﴾3﴿ Notwithstanding one thing contained within the different law for this smart or in any contract or in any memoranda or

articles of association, workplace politician an official a political candidate} of a company World Health Organization

ceases to hold workplace per se in consequence of the division of Associate in Nursing enterprise shall not be entitled to

mention any compensation for such cesser.

Procedure for investigation of mixtures.

﴾1﴿ Where the Commission is of the opinion that a mixture is perhaps reaching to cause, or has caused academic degree hefty adverse impact on competition among the relevant market in Republic of Asian nation, it shall issue a notice to indicate cause to the parties to combination business upon them to retort among thirty days of the receipt of the notice, on why investigation in respect of such combination mustn't be conducted.

﴾2﴿ The Commission, if it's further from the opinion that the mixture has, or is perhaps reaching to own, academic degree hefty adverse impact on competition, it shall, among seven in operation days from the date of receipt of the response of the parties to the mixture, direct the parties to the same combination to publish details of the mixture among ten in operation days of such direction, in such manner, as a result of it thinks applicable, for transfer the mixture to knowledge the info the information} or data of the overall public and persons affected or doable to be filled with such combination.

﴾3﴿ The Commission may invite someone or member of the overall public, affected or doable to be filled with the same combination, to file his written objections, if any, before the Commission among fifteen in operation days from the date thereon the most points of the mixture were discovered beneath sub‐section ﴾2﴿.

﴾4﴿ The Commission may, among fifteen in operation days from the expiration of the number per sub‐section ﴾3﴿, involve such further or totally different information as a result of it may hold match from the parties to the same combination.

﴾5﴿ The further or totally different information needed by the Commission shall be stocked with by the parties referred to in sub‐section ﴾4﴿ among fifteen days from the expiration of the number per sub‐section ﴾4﴿.

﴾6﴿ After receipt of all information and among a quantity of forty‐five in operation days from the expiration of the number per sub‐section ﴾5﴿, the Commission shall proceed to require care of the case in accordance with the provisions contained in section thirty-one.

REFERENCES 

• COMPETITION ACT, 2002 
• https://indiankanoon.org/