Difference Between Combination And Anti-Competitive Agreement

Posted in Chưa được phân loại

Anti-competitive agreements are also classified as horizontal and vertical agreements. Horizontal agreements are agreements between companies at the same level of the production chain, which is usually between two competitors, either to consolidate prices, to limit production, or to divide markets. In all these agreements, there is a presumption in the law that such agreements are the origin of AAEC. The cartel is also a horizontal agreement. This is usually done between producers of goods or service providers for pricing or market distribution and is generally considered the most damaging form of anti-competitive agreements. By law, horizontal agreements are categorized into a particular category and are subject to a negative presumption of anti-competitiveness. This rule is also called “in itself.” This means that where there is a horizontal agreement under Section 3(3) of the Act, it is considered that such an agreement is anti-competitive and has significant negative effects on competition1. While there is a possibility of anti-competitive practices on the part of local players, the same is true for international players. Large international groups may engage in the practice of dumping and sell their products at a lower price than in the domestic market. Although dumping is not illegal, since prices vary with changes in demand and supply, anti-dumping legislation comes into force when dumping causes significant harm to domestic actors. The interaction between trade law and international law was first observed in 1947 in the General Agreement on Tariffs and Trade (GATT) for the liberalisation of trade law. Its successor, the World Trade Organization (WTO), was created to reduce or remove trade barriers.

However, competition law was largely outside the scope of the WTO. This section provides an exception to joint ventures received by the parties when they increase the efficiency of production, supply, distribution, storage, purchase or control of goods or services. Section 3, paragraph 1, of the Act cannot be invoked independently and must necessarily be used with section 3, paragraph 3, in the context of horizontal agreements or section 3(4) in relation to vertical agreements. It should be noted, however, that paragraph 3, paragraph 1, is not only a suggestive provision, but is essentially the “gender” of the act. It should also be invoked independently to serve the interests of consumers and also cover various other types of agreements that may not fall under the auspices of Section 3, paragraph 3 or 3, paragraph 4. What is the resale price? It includes any agreement to sell goods provided that the resale prices by the buyer are calculated at the prices set by the seller, unless it is clearly stated that prices below those prices can be charged. Competition law should focus on anti-competitive practices, in particular cartel formation, pricing and other abuses of market power, and regulate mergers. It is important to ensure that this legislation is not itself anti-competitive, which is a real danger. To do so, it is necessary to ensure that the law is precise and that the margin of appreciation is limited to a minimum”[4] During the activity in India, the parties are prohibited from carrying out anti-competitive agreements.

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