Documente Academic
Documente Profesional
Documente Cultură
2. The Recoupment Test This test assumes that PP is happening and questions whet
her it is likely to succeed in light of the characteristics of the relevant mark
et, the predator firm and its target(s). Specifically this test aims to determin
e whether a firm s PP campaign would be likely to eliminate and deter competition,
and whether it is likely that the predator firm will then be able to amass at l
east enough supra-competitive profits to recover the losses it sustained during
the attack.
3. The Predatory Intent Test This test aims to address the more subjective quest
ion of whether a firm intended to engage in PP. It has been a rather controversi
al area in PP analysis. The European Union has expressly incorporated intent in it
s predation analysis (along with PCT), whereas, others, such as the United State
s, are more skeptical towards intent as an indicator that predatory conduct is occ
urring or is likely to harm competition.
------------------------------------------------------------Types of Predation :
1. Predation aimed at attaining a monopoly by driving out one s competition.
2. Predation designed to obtain monopoly power by compelling competitor to coope
rate the predatory firm.
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Competition Act, 2002
Components Of Competition Act :
The rubric of the new law, Competition Act, 2002 (Act, for brief) has essentiall
y four compartments :
I.Anti-Competition agreements Firms enter into agreements, which may have the potential of restricting competi
tion. A scan of the competition laws in the world will show that they make a dis
tinction between horizontal and vertical agreements between firms. The former, n
amely the horizontal agreements are those among competitors and the latter, name
ly the vertical agreements are those relating to an actual or potential relation
ship of purchasing or selling to each other.
The MRTP Act, 1969 had become obsolete in certain respects in the light of inter
national economic developments relating more particularly to competition felt to
shift the focus from curbing monopolies to promoting competition so that the In
dian market is equipped to compete with the markets worldwide.
The Competition Act (CA) attempts to make a shift from curbing monopolies to cur
bing practices that have adverse effects on competition both within and outside
India. It is interesting to see that under the new regime the legislature has ch
osen to regulate unfair trade practices under only the Consumer Protection Act 1
986 and not the Competition Act. In 2007 the Competition (Amendment) Act introdu
ced significant changes to the competition law regime . Most noteworthy of these
changes was the introduction of a mandatory notification process for persons un
dertaking combinations (Mergers and acquisitions) above the prescribed threshold
limits. In early 2008 the Competition Commission of India also promulgated and
circulated a draft of the Competition Commission (Combination) Regulations.
The regulations provide a framework for the regulation of combinations which inc
lude M&A transactions or amalgamations of enterprises. The merger provisions are
not yet in force. Nonetheless, it is only a matter of time before the relevant
provisions will be notified.
One of the most significant provisions of CA, Section 5, which defines combinatio
n (Mergers and acquisitions) by providing threshold limits in terms of assets an
d turnover is yet to be notified. There is no clarity as to when it will be made
effective. At present, any acquisition, merger or amalgamation falling within t
he ambit of the thresholds constitutes a combination.
================
Monopolization and other abusive practises :
Monopolization To take over and control (something or someone) completely : to use (something)
in a way that prevents others from using it.
Non-price monopolization practices:
Investments in R&D, advertising, product quality could be used to force exit;
By tying-in sales the monopolist in one market might extend into a second market
;
Similarly by making the first product incompatible with the rivals of second prod
uct;
Refusal to supply and rising rivals costs may also be anti-competitive.
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
2. Differentiate between globalization and global competition in refference to U
.K, U.S.A and E.U countries alongwith Special refference to IPR and cross border
relation ship.
Globalization Globalization describes an ongoing process by which regional economies, societie
s, and cultures have become integrated through a globe-spanning network of commu
nication and trade. The term is sometimes used to refer specifically to the inte
gration of national economies into the international economy through trade, fore
ign direct investment, capital flows, migration, and the spread of technology. H
owever, globalization is usually recognized as being driven by a combination of
economic, technological, socio-cultural, political, and biological factors. The
term can also refer to the transnational circulation of ideas, languages, or pop
ular culture through acculturation.
People around the globe are more connected to each other than ever before. Infor
mation and money flow more quickly than ever. Goods and services produced in one
part of the world are increasingly available in all parts of the world. Interna
The United States remains stable overall in 3rd position, showing improvement in
areas including macroeconomic stability, the result of a declining budget defic
it. Non-tariff barriers appear less burdensome
than in the past. However, stagnating productivity has called for a downward rev
ision of growth prospects,
highlighting the need for a renewed competitiveness agenda even in the top-ranki
ng economies. Despite
being in the top 10 best-ranked economies and recent positive news showing recov
ering income growth across all income groups, the United States does not rank in
the top 10 on any of the basic requirements
pillars (institutions, infrastructure, macroeconomic environment, health and pri
mary education).
On the efficiency enhancers subindex, it is not within the top 10 on goods marke
t efficiency or technological adoption. The position of the United States is dri
ven by innovation, business sophistication, market size, financial market develo
pment, labor market efficiency, and higher education and training. These finding
s highlight important challenges if the country is to remain in the top 10 over
the long term, and possible bottlenecks indicating the supply-side constraints t
hat are holding back progress and reducing the effectiveness of monetary policy
for jump-starting growth.
------------------------------------------------------------------United Kingdom Currently the United Kingdom is still one of the most competitive economies in t
he world, moving up three places to 7th on the back of marginal score improvemen
ts. Note that the data were collected before the Brexit vote, so initial repercu
ssions from the vote are not captured by this year s Index. Although the process a
nd the conditions of Brexit are still unknown, it is likely to have a negative i
mpact on the United Kingdom s competitiveness through goods and financial markets
as well as market size and, potentially, innovation.
Competitiveness of the UK economy has, up to now, rested on highly efficient goo
ds and labor markets (9th and 5th, respectively); business processes are highly
sophisticated (7th) and supported by a high level of digital readiness by both b
usinesses and consumers (3rd). Last year saw a partial recovery in the macroecon
omic environment (up 23 to 85th) and an improvement in financial market conditio
ns, although in general scores were mostly stable.
------------------------------------------------------------------------------------------------------------------------India India climbs for the second year in a row, to 39th. Its 16-place improvement is
the largest this year. India s competitiveness has improved across the board, in p
articular in goods market efficiency, business sophistication, and innovation. T
hanks to improved monetary and fiscal policies, as well as lower oil prices, the
Indian economy has stabilized and now boasts the highest growth among G20 count
ries. Recent reform efforts have concentrated on improving public institutions (
up 16), opening the economy to foreign investors and international trade (up fou
r), and increasing transparency in the financial system (up 15).
Still, a lot needs to be done. The labor market is segmented between workers pr
otected by rigid regulations and centralized wage determination (112th), especia
lly in the manufacturing sector, and millions of unprotected and informal worker
s. The efficiency of the domestic market (81st) is hindered by fiscal regulation
s that allow federal states to levy different levels of value-added taxes; large
, publicly owned enterprises further reduce the overall efficiency of the econom
y, especially in the utilities sector and the financial market, where there is g
rowing concern about the incidence of non-performing loans.
Finally, lack of infrastructure (68th) and ICT use (120th) remain bottlenecks. I
mprovement has been slow in recent years and further investment will be necessar
y, especially to connect rural areas and make sure they can equally benefit from
and contribute to the country s development.
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX