What is Competition Law?
Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct companies. Competition law is implemented through public and private enforcement.
Competition law is known as “antitrust law” in the United States. It is also known as “anti-monopoly law” in China and Russia, and in previous years was known as “trade practices law” in the United Kingdom and Australia. In the European Union, it is referred to as both antitrust and competition law.
The Competition Act, 2002 is a law that governs commercial competition in India. It replaced the erstwhile Monopolies and Restrictive Trade Practices Act, 1969.
The definition of ‘abuse of dominant position’, under Section 4 of the Act, 2002, as well as its link with the essential facilities doctrine, is relevant in this connection.
The doctrine should be dealt with in accordance with the principle of “refusal to deal”.
Anti Competitive Agreements
They are classified into two types:
Horizontal Agreements, Section 3(3) cartel, bid-rigging etc.: between two or more enterprises operating at same level of business.
Vertical Agreements, Section 3(4) exclusive supply/distribution, tie-in arrangement, Resale price maintenance, refusal to deal etc.
Combinations or Acquisitions
Acquisition of one or more enterprises by one or more persons or merger or amalgamation of enterprises shall be a combination of such enterprises and persons or enterprises.
Combination within the Competition Law is the merger of two or more firms or businesses. The Government controls mergers or combinations country-wide in order to promote minor industries and make sure that these small firms are not outshined or swallowed by reputed enterprises. The mergers of huge profit
firms not only make it difficult but also impossible for smaller firms to get to the mark or make profits.🎗
Types of Combinations : Horizonatal and Non Horizontal