Competition Act, 2002 - Section 3 -

PROHIBITION OF CERTAIN
AGREEMENTS
Came into force on - 13th January, 2003
Competition (Amendment) Act, 2007.
SS 3, 4 – on 20/9/2010
Combinations- 1/6/2011
Objects of the Act
1. Ensure fair competition - Prohibiting
trade practice causing appreciable
adverse effect on the competition
2. Promote & sustain competition in
markets
3. Protect the interest of consumers
4. Ensure freedom of trade on by other’s
in the market.
 Prohibition of Agreements - Anti - Competitive Agreements (Sec. 3)
No enterprise
Assn. of enterprises Shall enter into
Person – Production any agreement in
Assn. of persons respect of
Control of
Goods Supply
Provision of
Services
Sec 3
Acquisition Distribution

Which causes or
(2) Any agreement Storage is likely to cause
- Shall be void an AAEC within
India
 Sec. 3 Cont….
(3) Any agreement entered into…..
Practice carried on, or decision taken by,
Any Assn. of enterprises/of persons,
including cartels -
Engaged in identical or similar trade of
goods or provision of services -
WHICH -
(a) directly or indirectly Determines Purchase or Sale
Prices;
(b) Limits or Controls Production, Supply, Markets, Technical
Development, Investment or Provision of Services;

(c) Shares the market - Source of Production -

Provision of services -
By way of allocation of geographical area of
market
Type of goods or services, or
No. of customers in the market or
Any other similar way;

(d) directly or indirectly results in bid

rigging or collusive bidding,
• P… Nothing contained in this SS shall apply to
any JV agreement - If such agreement increases
efficiency in Production, supply, distribution,
storage, acquisition or control of goods or
provision of services.
• Explanation - Bid Rigging – Means
• Any agreement - Engaged in Identical/Similar
Production/Trading of Goods/Provision of
Services, which has –
• The Effect of Eliminating/Reducing Competition
for bids or adversely affecting or manipulating
the process for bidding.
Any agreement - At different stages or levels of the
production chain in different markets, in respect of
production, supply, distribution, storage, sale or
price of, or trade in goods or provision of services
Including -

Exclusive Exclusive
Tie-in Supply Distribution Refusal Resale Price
Arrangement Maintenance
Agreement Agreement To Deal

Shall be an agreement in contravention of SS (1) if

such agreement causes or is likely to cause an
AAEC
• TELCO v Registrar of RTP
• Principle of Rule of Reason