Competition Commission of India,Uk Usa

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Arsha v

COMPETITION COMMISSION OF INDIA

FEDERAL TRADE COMMISSION &

DIRECTOR GENERAL OF F AIR TRADING : A

COMPARATIVE STUDY



INTRODUCTION

INDIA• Competition Commission

USA• Federal Trade Commission

UK• Office of Fair Trading



NEED FOR REGULATION OF COMPETITION

Price fixing

Better availability

Preventing anti competitive practices

Prevent abuse of dominant position

Prevent mergers/combinations



COMPETITION COMMISSION OF INDIA

Establishment-Section 7 of Competition Act 2002

Nature&Structure

Body corporate

Perpetual succession

Common seal

To acquire and hold property

Sue and be sued



COMPOSITION OF COMMISSION The commission shall consist of chairperson ,two to six

other members appointed by the central government

Required quality

ability

integrity

standing

profession experience( not less than 15 years)

• international trade

• Economics

• Business• Commerce

Whole time members



APPOINTMENT OF DIRECTOR GENERAL

Appointed by Central Government(sub

section(1) of section 16 of Competition Act)

Purpose

Enforcing the Competition Act 2002 throughoutIndia

To prevent activities that have an adverse

effect on competition in India

Assisted by any additional ,Joint, Deputy or Assistant Director General



DUTIES OF COMMISSION

To eliminatepracticeshaving

adverse

effect oncompetition

Promote andsustain

competition

Protect theinterests of

consumersand ensurefreedom of

trade carried

on by other participants,in markets in

India



POWERS & FUNCTIONS OF COMMISSION

Guided by theprinciples of

natural justiceand, subject tothe other

provisions of this Act and of

any rulesmade by theCentral

Government

Commissionshall have the

powers toregulate its

own procedure

The Commissionmay call uponsuch experts,

from the field of economics,commerce,

accountancy,international tradeor from any other

discipline toassist theCommission inthe conduct of

any inquiry by it



KEY AREAS OF WORK

Prevention and elimination of anti competitiveagreements practices and arrangements

Prohibition of abuse of dominant position.

Regulation of combinations.

Competition advocacy.



APPEALS

Competition Appellate Tribunal

(COMPAT)

An appeal has to be filed within 60days of receipt of the order /direction / decision of theCommission.



FEDERAL TRADE COMMISSION OF USA

Created in 1915( Under Federal Trade Act

1914)

PurposesProtect the system of free enterprise and

competition

To promote free and fair competition in

interstate commerce



COMPOSITION OF COMMISSION

Consist of five commissioners

Seven year term

Maximum 3 members from thesame political party



STRUCTURE & PURPOSES

Independent administrative agency

To enforce the provision of Federal Trade

Commission Act

-Prohibits: Unfair or deceptive acts or practice incommerce

Lacks punitive authority

Can issue cease & desist order

Act as a protector of both consumer and

business rights



POWERS

FTC caninterferematters

whichrelates tointer statecommerce

and

includepublicgood

violation

FTCdoesn't

intervenedispute

b/wprivate

parties

If ceaseand desistorders of FTC is

Ignored itcan seek

civilpenalties

and

compensation infederalcourt

Dealswith

internetcommerce



3 BUREAUS

• Protecting consumer from unfair deceptive & fraudulent

practices

Bureau of Consumer Protection

• Prevent antitrust activity and investigate activities

involving restraint of trade

Bureau of Competition

• Predict and analyze the economic impact FTC activities

Bureau of Economics

To interpret and enforce jurisdictional legislation



DUTIES

Promote fair competitionthrough theenforcement

of certain

antitrust laws.

Prevent thedisseminationof false anddeceptive

advertising of

goods

Court look into 3main factors in

consumer unfair cases

1.whether thepractice injures

consumers.

2.whether thepractice violates

established

public policy and

3.whether it isunethical or

unscrupulous



APPEALS

Can be moved against the FTC order to the

commission

The commission may either dismiss the

case or issue cease and desist order Respondent has 60 days to take all

necessary steps to obey the order or file an

appeal through federal court system

The decision by the commission can be

appealed to US court of appeal and

ultimately to U.S Supreme Court



OFFICE OF FAIR TRADING OF UK

The Enterprise Act 2002 made the Office of Fair

Trading formally independent from government and

gave additional powers.

The role of the Director General of Fair Trading

(DGFT) was abolished and his powers give to OFT.

OFT has an express power to seal when inspecting

business premises without warrant and any

premises under warrant.

OFT can publish guidelines on how long seals can

be affixed for.



ROLE OF OFT

Analyzing markets

Enforcing Consumer and Competition Law

Merger control

Licensing

Supervising

Work advocacy

Delivery information

Education programs



POWER OF OFT

Whether there are reasonable grounds for

suspecting that there is an agreement which

May affect trade within United Kingdom.

has as its object or effect the prevention,restriction or distortion of competition within

the United Kingdom.

Where there is reasonable ground for suspecting

that there is an agreement which

May affect trade between members states

Prevent, restrict competition within the

community.

To investigate :



(CONTI…….)

Where there are reasonable grounds for

suspecting that at some time in the past

there was an agreement which at that time.

May have affected trade between member states andHas as its object or effect the prevention ,restriction or

distortion of competition within the community.

It is immaterial that whether the agreement

in question remains in existence or not



APPEALS

Appeals fromdecision of

OFT is firstheard by theCompetition

Appeal

Tribunal.( CAT)

Further

appeals toCourt of Appeal means

the Court of

Sessions.



COMPARISON

INDIA(CCI)

Competition Act 2002

Key aeas of work

Prevention of anticompetitiveagreements

Prohibition of abuseof dominant position

Regulation of combination and

competitionadvocacy

USA(FTC)

Federal TradeCommission Act

1914

Protect the systemof free enterpriseand competition

Preventing unfair

methods ,deceptiveacts, price fixing

agreements

Preventing boycottsand combination inrestraint of trade

UK(OFT)

The Enterprise Act 2002

Analyzing markets,merger

control,licencing

Enforcing consumer and competition law

Prevent anticompetitivepractices



INDIA USA UK

Having punitiveauthority

Any type of disputeswhich hinderingcompetition may

consider

Does not defineabuse of dominate

position insteadenumerate certain

conducts

Do not enumerateany specific

prohibited conducts

It does not intervenedisputes between

private parties

No punitive authority No punitive authority

All types of disputesconsidered

Enumerate conductshaving abuse of

dominant position



APPEALS

India

COMPAT

USA

US court of Appeal and to US

Supreme Court

UK

Competition Appeal

Tribunal(CAT)and to Court of

Sessions



CONCLUSION

In US and UK Competition Law originated inlong back.

Indian Competition Law has a recent origin.

The OFT and DGFT were old institutionsbut CCI is a newly originated one.

These 3 legislations primarily deals with anticompetitive agreements ,the abuse of dominant position and mergers and

combinations.

Competition Commission of India,Uk Usa

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