An Organization constituted by the owners of Cement Industries unanimously decided to raise the price of cement above competitive levels resulting in injury to the consumers and to the economy. But the decision taken by

According to Section 2(b) of the Competition Act, 2002 the term 'agreement' includes any arrangement or understanding or action in concert - whether or not, such arrangement, understanding or concert is in formal or in writing; or whether or not such arrangement, understanding or concert is intended to be enforceable by legal proceedings. It implies that an arrangement need not necessarily be in writing. Intention of legal enforceability is also not relevant for an arrangement to be treated as agreement under this section. The term is relevant in the context of Section 3, which envisages that anti-competitive agreements shall be void and thereby prohibited by the law. Thus, the organisation constituted by the owners of cement industries which decided to raise the price of cement above competition level which is causing injury to the consumers and economy, will be treated as an 'agreement' under Section 2(b), though it was neither in writing nor intended to have legal enforceability. Such agreement will be void and thereby prohibited under the Competition Act.