(new)The Competition

Act

The Competition Act 2003 & 2007

The Competition bill was passed by both the houses of
Parliament in December 2002, and The President of
India give his assent on January 13,2003. and the
Competition Act 2003 came in to being.
The New Act is more relevant to the current
competitive environment in which Indian Industries
operates.

Objectives of the Competition Act

(a) To prevent practices having adverse effect on
Competition.
(b) to promote and sustain competition in markets.
( c ) to protect the interests of the Consumers
( d ) to ensure freedom of trade carried on by other
participants in markets.
( e ) To establish a commission which shall be a nodal
agency to oversee the Administration of this legislation
.
For this purpose the COMPETITION COMMISSION OF
INDIA was established (CCI)

Scope of the Act

The Competition Act 2002 extends extends to the
whole of India except the state of Jammu and Kashmir .
It shall come in to force on such date as the Central
Government May notify in the Gazette.
Salient FEATURES
The Main focus of the competition Act,2002 is contained
in section 3 to 6 of chapter 11 which deal with certain
practices that have an adverse effect on competition.
These practices have been described and defined as
anti competitive agreements .

PENALTIES UNDER The Competition

Act
1. Contravention of orders of CCI
Section 42 of the Act, which was revised as
Competition (Amendment) Act 2007 , provides a harder
penalty of not exceeding Rupees Ten lakhs or
imprisonment for a term for up to one year or both as
per the jurisdiction of the Civil Court.
2. Any person does not comply with the orders or
directions issued, or fail to pay the fine ,is punishable
with imprisonment of up to three years.

Penalty for Non-furnishing

Information (Notice) of Combination
The Commission (The Competition Commission of India) shall
impose on such person or enterprise a penalty which may extend
to 1% of the total turnover of the Assets of such combination
Penalty for making false statement Or Omission to furnish Material
information.
Such persons shall be liable to a penalty which shall be not less
than Rs. 50 lakhs ,which may extend up to Rs. 1 crore.as may be
determined by the Commission. (CCI)
Penalty for offenses in relation to furnishing of
Information:
(Section 45) A penalty which may extend to Rs. 10 lakhs