Unique Auto Products Ltd., produces electric bikes, which is a new product. Its average per km. expenses in running the bike comes under rupee One. Due to its fuel economy and low cost, it enjoys almost the monopolistic

Answer 2A(iii) Section 19 of the Competition Act, 2002, deals with the inquiry into certain agreements and dominant position of enterprises. Section 19(1) provides that the Competition Commission of India (CCI) may inquire into any alleged contravention of the provisions contained in section 3(1) or 4(1) of the Act either on its own motion or on - receipt of any information, in such manner and accompanied by such fee as may be determined by regulations, from any person, consumer or their association or trade association: or a reference made to it by the Central Government or a State Government or a statutory authority. Section 4 of the Competition Act, 2002 states that- No enterprise or group shall abuse its dominant position. There shall be an abuse of dominant position under section 4(1), if an enterprise or a group- directly or indirectly, imposes unfair or discriminatory condition in purchase or sale of goods or service; or price in purchase or sale (including predatory price) of goods or service Explanation (b) to Section 4(2) of the act further states that 'predatory price' means the sale of goods or provision of services, at a price which is below the cost, as may be determined by regulations, or production of goods or provision of services, with a view to reduce competition or eliminate the competitors. In the given case, the Unique Auto Products, after entering the new entities in the market decided to sale the bikes below its cost price in order to remove the new comers. This act comes under the predatory price. Hence, the new entities can approach the CCI for granting relief from the abusing the dominance by the Unique Auto Products Ltd. Hence, Competition Commission of India may take necessary action under Competition Act, 2002.