On what matters the Competition Commission of India may direct for the division of an enterprise, enjoying dominant position to ensure that such enterprise or group does not abuse its dominant position.

CS Executive · Economic, Business and Commercial Laws · PYQS · June 2021
On what matters the Competition Commission of India may direct for the division of an enterprise, enjoying dominant position to ensure that such enterprise or group does not abuse its dominant position.

Answer & Explanation:

According to Section 28 of the Competition Act, 2002, the Competition Commission of India may, notwithstanding anything contained in any other law for the time being in force, by order in writing, direct division of an enterprise enjoying dominant position to ensure that such enterprise or group does not abuse its dominant position. The Competition Commission of India may also order for the transfer or vesting of property, rights, liabilities or obligations; the adjustment of contracts either by discharge or reduction of any liability or obligation or otherwise; the creation, allotment, surrender or cancellation of any shares, stocks or securities etc. Competition Act, 2002 expressly prohibits any enterprise or group from abusing its dominant position. There shall be abuse of dominant position, if an enterprise or group – directly or indirectly imposes unfair or discriminatory; condition in purchase or sale of goods or services; or price in purchase or sale (including predatory price) of goods or service. limits or restricts— production of goods or provision of services or market therefor; or technical or scientific development relating to goods or services to the prejudice of consumers; or indulges in practice or practices resulting in denial of market access in any manner; or makes conclusion of contracts subject to acceptance by other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts; or uses its dominant position in one relevant market to enter into, or protect, other relevant market.

Topics: Competition Act, 2002

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