ANTI- COMPETITIVE AGREEMENT UNDER EFFECT OF COMPETITION ACT 2002 AND 2018 (AMENDED) IN REFERENCE TO GROCERY GOODS AND TRADE

Abstract

The Competition Act of 2002, which was enacted by the Indian Parliament, governs India’s competition legislation. It was designed to substitute the outdated “Monopolies and Restrictive Trade Practices Act” of 1969. Under the Act, the “Competition Commission of India” was entrenched to prevent such acts that harm competition in India. This law applies to the entire country and is used for the “implementation and enforcement of competition policy, as well as to prohibit and penalize anti-competitive business practices and excessive government participation in the market”. Written and spoken agreements, arrangements, and agreements between firms or individuals are all subject to competition law. The Act intends to make it illegal to enter into agreements that hinder free trade and competition between two businesses. It prohibits market monopolies from abusing their power and gives entrepreneurs the opportunity to compete in the marketplace.

When doing business in India, it is illegal to enter into anti-competitive agreements. “Anti-competitive agreements”adversely affect the competition or cause “Appreciable Adverse Effect on Competition” (“AAEC”). Horizontal or vertical agreements are possible. However, the “Competition Act of 2002”, recognizes the rights of intellectual property and to protect them, their owners are permitted to set acceptable limitations. The “Competition Commission of India” (“CCI”) is now having the authority to require any corporation or individual to alter, stop entering into anti-competitive agreements and don’t do it again, along with a penalty extending to“10% of the average turnover over the previous three years”. Given the CCI’s clout, it’s vital that businesses working in India are conscious of any accord that could be ruled as “anti-competitive