Monopolies and restrictive trade practices. Monopolies and Restrictive Trade Practices Act, 1969 2019-01-09

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The Monopolies and Restrictive Trade Practices Act, 1969

monopolies and restrictive trade practices

Failure to register such an agreement, without any reasonable excuse, shall be punishable with imprisonment for a term which may extend upto three years, or with fine which may extend upto five thousand rupees or with both, and where the offence is a continuing one, with a further fine which may extend to five hundred rupees for every day, after the first, during which such failure continues. Whereas, Competition Act considers interest of public at large. Every order made by the Commission under section 12A granting a temporary injunction or under section 12B directing the owner of an undertaking or other person to make payment of any amount, may be enforced by the Commission in the same manner as if it were a decree or order made by a court in an suit pending therein and it shall be lawful for the Commission to send, in the event of its inability to execute it, such order to the court within the local limits of whose jurisdiction, — a in the case of an order against a company, the registered office of the company is situated, or b in the case of an order against any other person, the place where the person concerned voluntarily resides or carries on business of personally works for gain, is situated, and thereupon the court to which the order is so sent shall execute the order as if it were a decree or order sent to it for execution. The firms with assets of Rs. Unreasonably preventing or lessening competition in the production, supply or distribution of any goods or services whether or not by adopting unfair method or fair or deceptive practices 3. Proceedings in case of contravention of section 3 11.

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Section 2 in The Monopolies and restrictive Trade practices Act, 1969

monopolies and restrictive trade practices

A real world example of selling products that addict consumers or are harmful holds good for the cigarette manufactures. The Authority is required to notify the public, by notice in the Kenya gazette, of the nature of the exemption sought and calling upon interested parties to submit any written representations to the Authority within 30 days of the notice. Nature Reformatory Punitive Dominance Determined by firm's size. Moreover, the Federal Government is gravely concerned with the national interest of Pakistan in relation to economic and financial stability and these facts have also been included in the preamble. As of now, there is no clarity as to when these provisions would be made effective. The particulars to be furnished under this section shall be furnished by or on behalf of any person who is a party to the agreement or, as the case may be, was a party thereto immediately before its determination, and where the particulars are duly furnished by or on behalf of any such person, the provisions of this section shall be deemed to be complied with on the part of all such persons. The applicability of some of them in Indian conditions will be doubtful; in our conditions of shortage, the distribution and pricing of many commodities are often controlled and supervised by the government authorities and they are often party to such agreements.

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The Monopolies and restrictive Trade practices Act, 1969

monopolies and restrictive trade practices

Explanation 1 : For the purposes of this Act, two bodies corporate, shall be deemed to be under the same management, — i if one such body corporate exercises control over the other or both are under the control of the same group or any of the constituents of the same group; or ii if the managing director or manager of one such body corporate is the managing director or manager of the other; or iii if one such body corporate holds not less than one-fourth of the equity shares in the other or controls the composition of not less than one-fourth of the total membership of the board of directors of the other; or iv if one or more directors of one such body corporate constitute, or at any time within a period of six months immediately preceding the day when the question arises as to whether such bodies corporate are under the same management, constituted whether independently or together with relatives of such directors or the employees of the first mentioned body corporate one-fourth of the director of the other; or v if the same individual or individuals belonging to a group, while holding whether by themselves or together with their relatives not less than one-fourth of the equity shares in one such body corporate also hold whether by themselves or together with their relatives not less than one-fourth of the equity shares in the other; or vi if the same body corporate or bodies corporate belonging to a group, holding, whether independently or along with its or their subsidiary or subsidiaries, not less than one-fourth of the equity shares in one body corporate, also hold not less than one-fourth of the equity shares in the other; or vii if not less than one-fourth of the total voting power in relation to each of the two bodies corporate is exercised or controlled by the same individual whether independently or together with his relatives or the same body corporate whether independently or together with its subsidiaries ; or viii if not less than one-fourth of the total voting power in relation to each of the two bodies corporate is exercised or controlled by the same individuals belonging to a group or by the same bodies corporate belonging to a group, or jointly by such individual or individuals and one or more of such bodies corporate; or ix if the directors of the one such body corporate are accustomed to act in accordance with the directions or instructions of one or more of the directors of the other, or if the directors of both the bodies corporate are accustomed to act in accordance with the directions or instructions of an individual, whether belonging to a group or not. The thrust of the policy will be more on controlling unfair or restrictive business practices. Unreasonably restrictive trade practices 6. Notwithstanding anything contained in sub-section 1 , where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Conversely, Competition Act focuses on the interest of the public at large.

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Essay on the Monopolies and Restrictive Trade Practices

monopolies and restrictive trade practices

The Central Government may, by notification, appoint a Director General of Investigation and Registration, and as many Additional, Joint, Deputy or Assistant Directors General of Investigation and Registration, as it may think fit, for making investigation for the purposes of this Act and for maintaining a Register of agreements subject to registration under this Act and for performing such other functions as are, or may be provided by, or under, this Act. Constitution of Authority: Section 8: At least one member must be a Chartered Accountant or Cost and Management Accountant. It also helps the country to develop economically. The application for exemption is required to be made in a prescribed form yet to be prescribed and must be accompanied by any information that the Authority may reasonably require. That covers the essentials of Restrictive Trade Practice and Unfair Trade Practice.

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Monopolies and Restrictive Trade Practices (Control and Prevention) Ordinance, 1970 (Ordinance No. V of 1970).

monopolies and restrictive trade practices

If any person discloses an information in contravention of section 60, he shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to five hundred rupees, or with both. Explanation I : Where any agreement subject to registration under this section relates to the production, storage, supply, distribution or control of goods or the performance of any services in India and any party to the agreement carries on business in India, the agreement shall be deemed to be an agreement within the meaning of this section, notwithstanding that any other party to the agreement does not carry on business in India. The Monopolies And Restrictive Trade Practices 15. The act came into force from 1st June, 1970. No Court inferior to that of a Court of Session shall try any offence under this Act. Explanation : In determining, for the purposes of clause c , whether or not any undertaking is owned or controlled by a corporation, the shares held by financial institutions shall not be taken into account.

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Difference Between MRTP Act and Competition Act (with Comparison Chart)

monopolies and restrictive trade practices

Few dominant firm adopt these to harm the competition. However, ever since, there has been considerable movement towards liberalization, privatization and globalization i. The problem of controlling economic concentration and monopolies got the secondary considerations as this objective is subdued by the objective of attaining higher industrial growth. However, the Monopoly Control Authority can make changes in the Monopoly Control Authority Rules, 1971. Reserve for taxation to the extent of the actual tax liability of the company. It is interesting to note that the legislation governing the monopolies and restrictive trade practices was made on February 26, 1970 and enforced on August 17, 1971 and made to operate in 1972 when rules were notified and undertakings. Explanation 1 : For the purposes of this section, an inquiry shall be deemed to have commenced upon the receipt by the Commission of any complaint, reference, or, as the case may be, application or upon its own knowledge or information reduced to writing by the Commission.

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The Monopolies and Restrictive Trade Practices

monopolies and restrictive trade practices

No order made under this Act with respect to any monopolistic or restrictive trade practice shall operate so as to restrict — a the right of any person to restrain any infringement of a patent granted in India, or b any person as to the condition which he attached to a licence to do anything, the doing of which but for the licence would be an infringement of a patent granted in India, or c the right of any person to export goods from India, to the extent to which the monopolistic or restrictive trade practice relates exclusively to the production, supply, distribution or control of goods for such export. Power to issue interim order 13. No statement made by a person in the course of giving evidence before the Commission shall subject him to, or be used against him in, any civil or criminal proceeding except a prosecution for giving false evidence by such statements : Provided that the Statement — a is made in respect to a question which he is required by the Commission to answer; and b is relevant to the subject-matter of the inquiry. Monopoly Control Authority Rules, 1971 The above rules constitute three parts namely, Preliminary, Registration of Undertaking and Miscellaneous. Without prejudice to the provisions of this Act with respect to registration and to any of the powers of the Commission or of the Central Government under this Act, no supplier shall withhold supplies of any goods from any wholesaler or retailer seeking to obtain them for re-sale in India on the ground that the wholesaler or retailer— Nothing contained in sub-section 1 shall render it unlawful for a supplier to withhold supplies of goods from any wholesaler or retailer or to cause or procure another supplier to do so if he has reasonable cause to believe that the wholesaler or the retailer, as the case may be, has been using as loss leaders any goods of the same or a similar description whether obtained from that supplier or not. All these registered undertakings were subject to following types of control on their different industrial activities: a while proposing to expand the activities of the undertakings substantially by issuing fresh capital or by installing new machineries, notice to the Central Government was required to be given for getting approval Section 21 ; b while proposing to establish a new undertaking, prior permission of the Central Government was required to be obtained Section 22 ; and c while proposing to acquire, merge or amalgamate with another undertaking, the sanction of the Central Government must be taken before the execution of such proposal Section 23.

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Competition Act, 2002 replaces Monopolies and re

monopolies and restrictive trade practices

Similarly, mergers, amalgamations or take-over in which such companies are involved also require prior approval. In addition, there is a presumption that a prohibited agreement or concerted practice exists between two parties if one of the parties owns a significant interest in the other or has at least one director or one substantial shareholder in common. The seller is oriented towards minting money from the sale. The Central Government may at any time require the Commission to submit to it a report on the general effect on the public interest of such trade practices as, in the opinion of that Government, either constitute or contribute to monopolistic or restrictive or unfair trade practices or concentration of economic power to the common detriment. Powers of the Authority in relation to a proceeding or enquiry 15. Anti-competition practices like cartels, predatory pricing, rigging etc.


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Competition Act, 2002 replaces Monopolies and re

monopolies and restrictive trade practices

The following transitional provisions would apply as provided in Section 66 of the Competition Act, 2002:- 1. Inadequacy in dealing effectively with anti- competitive practices, due to lack of definitions, cumbersome procedures and scarce resources. Explanation : For the purposes of this section all activities carried on by way of trade by an undertakings or two or more inter-connected undertaking may be treated as a single trade. Undertaking C is inter-connected with undertaking A; if undertaking D is inter-connected with undertaking C, undertaking D will be inter-connected with undertaking B and consequently with undertaking A and so on. The Commission may, before issuing any process requiring the attendance of the person against whom an inquiry other than an inquiry upon an application by the Director General may be made under section 36B, by an order, require the Director General to make, or cause to be made, a preliminary investigation in such manner as it may direct and submit a report to the Commission, for the purpose of satisfying itself that the matter requires to be inquired into. While the old act belongs to pre-liberalisation period, the new Act, came into force after liberalization.

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The Monopolies and restrictive Trade practices Act, 1969

monopolies and restrictive trade practices

It occurs because of global weather patterns and topography. Any undertaking engaged in an industry, the management of which has been taken over by any person or body of persons under powers by the Central Government. In respect of restrictive trade practices, the Commission works as a quasi-judicial tribunal which cannot impose any penalties and it has no authority to issue interim injunctions. It is possible for a member of an association to disassociate itself entirely from the recommendations of the trade association by expressly notifying the trade association in writing of that fact, stating that it will not take action or will refrain from action of a kind referred to in an express or implied recommendation made by that trade association. Out of these, 1,787 undertakings were belonging to large industrial houses and the remaining 67 undertakings were dominant undertakings. The functions of the Authority shall be- a to register undertakings, individuals and agreements; b to conduct enquiries into the general economic conditions of the country with particular reference to the concentration of economic power and the existence or growth of monopoly power and restrictive trade practices; c to conduct such enquiry into the affairs of any undertaking or individual as may be necessary for the purposes of this Ordinance; d to give advice to persons or undertakings asking for the same as to whether any actions proposed to be taken by such person or undertaking are consistent with the provisions of this Ordinance, or any rules or orders made thereunder; e to make recommendations to the Government or a Provincial Government or to the appropriate authority or officer of such Government for suitable Governmental actions to prevent or eliminate undue concentration of economic power, unreasonable monopoly power or unreasonably restrictive trade practices; and f to make such orders and to do all such things as are necessary for carrying out the purposes of this Ordinance.

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