Discuss the factors to be considered by Competition Commission of India while determining whether an agreement has appreciable adverse effect on Competition ?

CS Executive · Economic, Business and Commercial Laws · PYQS · December 2024
Discuss the factors to be considered by Competition Commission of India while determining whether an agreement has appreciable adverse effect on Competition ?

Answer & Explanation:

Section 19(3) of the Competition Act, 2002 provides that while determining whether an agreement has appreciable adverse effect on competition, the Commission shall give due regard to all or any of the following factors, namely: creation of barriers to new entrants in the market; driving existing competitors out of the market; foreclosure of competition by hindering entry into the market; accrual of benefits to consumers; improvements in production or distribution of goods or provision of services; promotion of technical, scientific and economic development by means of production or distribution of goods or provision of services. The first three factors are anti-competitive, while the latter three factors deal with benign effects. The touch stone of appreciable adverse effect on competition need not be proved while enquiring into abuse of dominance.

Topics: Competition Law

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