Competition Act (2002)

Following the Report of the Raghavan Committee,

the Government of India passed the Competition Act in

December 2002 which was enforced as an All-India

Legislation. The main provisions of the Act are:

1. No enterprise or association of enterprises or

person or association of persons shall enter into any

agreement in respect of production, supply, distribution,

storage, acquisition of goods and services, which causes

or is likely to cause an appreciable adverse effect on

competition within India. Any agreement in violation of

the above shall be void.

However, this shall not apply to any agreement

entered into by way of joint venture if such agreement

increases efficiency in production, supply, distribution,

storage, acquisition or control of goods or provision of

services.

2. Any agreement made at any level of the produc-

tion chain of goods and services will be void if it makes :

(a) tie-in arrangement;

(b) exclusive supply agreement;

(c) exclusive distribution agreement;

(d) refusal to deal;

(e) resale price maintenance.

No enterprise shall abuse its dominant position

by: (a) directly or indirectly imposing unfair or discrimi-

natory price in the purchase or sale of goods and services: