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Agreement Under Competition Act 2002

Given this power of the ICC, it becomes important for parties operating in India to be aware of agreements that can be considered “anti-competitive”. In this bulletin, we will discuss the situations and conditions under which an agreement can become anti-competitive. The law aims to regulate the operation and activities of combinations, a term that provides for acquisitions, mergers or mergers. Combinations exceeding the thresholds set by law for assets or turnover and likely to affect or affect competition on the relevant market in India may be examined by the Commission. Anti-competitive agreements would be a particularly serious type of anti-competitive agreement. Agreements are generally aimed at determining prices, manipulating tenders, allocating markets or limiting production. As a result, cartels have little or no incentive to lower prices or offer better quality goods or services. According to economic studies, cartels are on average 30 percent higher. There are four main types of cartels: as explained in question 15, the ICC assesses resale price restrictions in the context of reason and is therefore required to examine possible efficiency gains resulting from vertical restraints. To our knowledge, the ICC`s examination of resale price restrictions has not yet significantly addressed the efficiency gains resulting from such restrictions (but has often highlighted the lack of efficiency or utility gains for consumers resulting from the maintenance of resale prices). The main thrust of the Competition Act 2002 is to promote and maintain competition in markets and to prevent practices harmful to competition. The Law prohibits anti-competitive agreements, abuse of dominance by companies and regulates combinations (acquisition, acquisition of control and M&A) that could or could have a significant impact on competition in India. The objectives of the Act will be achieved by the Competition Commission of India (CCI), set up by the central government with effect from 14 October 2003.

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