Affect its competition, consumer or the relevant market in its favour.įor example, predatory pricing is a practice that is seen to be an abuse of the dominant position.Operate independently of competitive forces in the relevant market.According to the act dominant position means any enterprise that enjoys the position and power in the Indian market which enables it to: Abuse of dominant position is defined under the second part of the same Section. The abuse of the dominant position is prohibited by Section 4 of the Competition Act. Limits service provision in the market.Indirectly affects purchase or sale prices.Directly affects purchase or sale prices.An AAEC agreement is classified as any agreements that result in: The Act expressly states that such an agreement shall be void. Such agreements are termed as AAEC agreement, which means the Appreciable Adverse Effect on Competition agreements.
The Competition Act, 2002 defines anti-competitive agreements as such in section 3 where it states, “ No enterprise or association of enterprises or individuals or association of individuals may enter into an agreement regarding production, supply, distribution, storage, acquisition or control of goods or provision of services which may adversely affect the competition in the Indian market”. This has the effect of the companies reducing the competition in the market which adversely affects the end consumer. In simple words, Anti-Competitive agreements are agreements that are made by two or more companies competing in the same market to fix prices or reduce stocks etc, so as to manipulate the market favourably for them. to protect the interest of the consumer.to protect the freedom of trade for the participating individuals and entities in the market.to prevent monopolies and to promote competition in the market.to provide the framework for the establishment of the Competition Commission.The main objectives of the Competition Act, 2002 are: The Act seeks to prevent monopolies and also to prevent unnecessary intervention by the government.
The Act protects free and fair competition which protects the freedom of trade. The Act seeks to provide the legal framework and tools to ensure competition policies are met, to prevent anti-competition practices and provide for the penalisation of such acts.