The draftsmen of the Competition Act, 2002 had demonstrated utmost concern and care in identifying questionable combinations and prohibiting such combinations. In order to achieve this object, extra territorial jurisdict

CS Professional · Corporate Restructuring, Valuation and Insolvency · PYQS · June 2015
The draftsmen of the Competition Act, 2002 had demonstrated utmost concern and care in identifying questionable combinations and prohibiting such combinations. In order to achieve this object, extra territorial jurisdiction is conferred on the Competition Commission of India (CCI) to inquire and pass orders even if both the parties to an agreement are outside India. List out the circumstances where the CCI can pass orders consequent to extra territorial jurisdiction conferred on it.

Answer & Explanation:

Section 32 of the Competition Act, 2002 extends the jurisdiction of the Competition Commission of India (CCI) to inquire 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 the relevant market in India, notwithstanding that: An agreement referred to in section 3 has been entered into outside India; or Any party to such agreement is outside India; or Any enterprise abusing the dominant position is outside India; or A combination has taken place outside India; or Any party to combination is outside India; or Any other matter or practice or action arising out of such agreement or dominant position or combination is outside India. The above clearly demonstrate that acts taking place outside India but having an effect on competition in India will be subject to the jurisdiction of the Commission. The Competition Commission of India will have jurisdiction even if both the parties to an agreement are outside India but only if the agreement, dominant position or combination entered into by them has an appreciable adverse effect on competition in the relevant market of India.

Topics: Competition Law

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