Mc 102 business environment

1. Presented by: Sangeeta saini
M.Com (previous)
641

2. Contents
 MRTP Act,1969.
 Competition Act,2002.
 Difference between Mrtp Act and
competition bill.
 Duties and powers of commission.
 Conclusion.

3.  The Act come into force from 1st
June,1970.
 The Act aims to prevent concentration of
economic power , provide for control
monopolies , and protect consumer
interest.
 Amended in 1974 , 1980 , 1982 , 1984 ,
1991.
 It extends to the whole of India except
the state of Jammu and Kashmir.

4. Competition Act ,2002
 The government of India introduced the
bill in 2001.
 Bill passed in Dec.,2002.
 On 13 Jan. 2003 , the president of India
gave his assent.
 Competition commission of India is
advocacy for competition act , 2002.
 It replaces Mrtp act,1969.

5. Objectives of Competition Act, 2002
To protect the
interest of
consumers.
To remove the
negative aspects
of competition .
To promoting
competition.
To create a fund to
be called the
competition fund.
Establishment of
competition
commission of India.

6. Difference between Mrtp act and
competition bill
Basis of difference MRTP Act Competition Bill
1.Objective To reduce or eliminate
monopolistic , restrictive and
unfair trade practices.
To increase competition.
2.Judicial power MRTPC do not have any
judicial powers.
CCI shall have judicial
powers.
3.Establishment of
special fund
No provision of fund exists in
this act.
A special fund namely
competition fund shall be
established.
4.Registration of
agreements
Registration of agreement is
compulsory .
Registration of agreement is
not compulsory .
5.Unfair trade
practices
Unfair trade practices are
covered .
Unfair trade practices are
not covered .
6.Penalties for
offences
It has no penalty for offences. It has penalties for offences.

7. Duties and powers of
commission [section 18 to 40]
 : To eliminate practices having adverse
effect on competition.
 :Inquiry
 Factors to be determined for
adverse effect:
 Creation of barriers to new entrants in the market.
 Driving existing competitors out of market.

8.  Improvement in production or distribution of
goods.
 Relevant geographic market:
 Regulatory trade barriers.
 Transport costs.
 Language.
 Relevant product market:
 Physical characteristics or end use of goods.
 Price of goods and services.
 Consumer preferences.

9.  : Inquiry into
combination by commission.
 : Benches of
commission.
 : Distribution of business
of commission amongst benches.
 : Procedure of deciding
a case where members of a bench
differ in opinion.

10.  : The CCI is empowered to
pass a range of orders . These order may
be:
• To discontinue any agreement or
practice.
• Imposition of penalty not exceeding 10%
of the average of the turnover for the last
3 years.
• The modification of agreement.

11.  Powers of commission:
 Requiring the discovery and production of
documents.
 Receiving evidence on affidavits.
 Issuing commissions for examination of witnesses or
documents.
 Dismissing an application in default and deciding it.
 Application for review of order.
 Rectification of orders.
 Appeal by aggrieved person.

12. In short ,we can say that the
purpose of competition act is
to promote the competition
and protect the interest of
consumers .

14. Any Query?