Given this power of the ICC, it becomes essential that parties present in India be aware of the agreements that may fall within the framework of the designation “anti-competitive”. In this newsletter, we will discuss the situations and conditions under which an agreement may become anti-competitive. The ideal market is one where different market players are independent and use each other to restrict competition. This economic freedom of market participants is a prerequisite for maintaining free and unfettered competition in any market. At some point, market participants will be able to enter into competition restriction agreements in order to make more money rather than compete for purchases and disadvantages. Adam Smith`s words that “people of the same business rarely meet, even for joy and distraction, but the conversation ends with a conspiracy against the public or in some remorse to raise prices” are still applicable and to some extent still true today. Section 3 of the Competition Act, 2002 (`Law`) is intended to prohibit these agreements. This article attempts to study and analyze various provisions relating to anti-competitive agreements related to the law. The author also examines whether consumers may be involved in anti-competitive agreements.
2. Anti-competitive agreements, Section 3, of the Act also prohibit and annul agreements between two companies or persons or associations of persons that have significant negative effects on competition. The section categorizes agreements into two categories: – 2.1 Horizontal agreements This type of agreement is called horizontal agreements, because the parties are at the same level of production in the same market. In accordance with Section 3, paragraph 3, certain agreements between companies, decisions of business associations, including agreements that engage in identical or similar exchanges of goods or services, are considered to be material effects on competition, which directly or indirectly determine purchase or sale prices; (b) limited or controlled production, supply, market development, technical development, investment or service delivery; (c) to share the market or source of production or service delivery through the distribution of the geographic area of the market, the type of goods or services or the number of customers in the market or in a similar way; (d) leads, directly or indirectly, to manipulation of offers or collusive offers, these agreements are in themselves illegal and there is no need to prove whether or not the agreement is anti-competitive on the issue.