"Events taking place outside India but having an effect on competition in India is also subject to jurisdiction of Competition Commission of India." Comment on extra territorial jurisdiction provided under Competition Ac

CS Professional · Corporate Restructuring, Valuation and Insolvency · PYQS · December 2017
"Events taking place outside India but having an effect on competition in India is also subject to jurisdiction of Competition Commission of India." Comment on extra territorial jurisdiction provided under Competition Act, 2002.

Answer & Explanation:

Section 32 of the Competition Act, 2002 provides jurisdiction to the Competition Commission of India to inquire into and pass orders in accordance with the provisions of the Act into an agreement or dominant position or combination, which is likely to have, an appreciable adverse effect on competition in relevant market in India. Jurisdiction is not vitiated even if (a) the agreement is entered into outside India; or (b) one party to agreement is outside India; or (c) the enterprise abusing the dominant position is outside India; or (d) combination has taken place outside India; or (e) any party to combination is outside India; or (f) any other matter or practice or action arising out of such agreement or dominant position or combination is outside India. Thus it is crystal clear that acts taking place outside India but having an effect on competition in India falls within jurisdiction of Commission. It is also evident that the Competition Commission of India can exercise jurisdiction even if both or all the parties to the agreement are outside India. Only in cases of such agreements, dominant position or combination entered into by the parties apparently reveal adverse effect on competition in the relevant market of India. We can observe such instances in e-commerce business that extends globally.

Topics: Competition Law

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