Competition Law in New Economy M
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Y COMPETITION LAW IN NEW ECONOMY M O COMPETITION LAW N JAGANNATH UNIVERSITY O C E IN NEW ECONOMY AWARDS & ACHIEVEMENTS W E N N I W A Forward by Edited by L N Prof. H.L. Verma Dr. Raj Kumar O I T I T E P M O C r a m u K j a R a m r e V . L . H JAGANNATH UNIVERSITY JAGANNATH UNIVERSITY State Highway 22, Bhadurgarh-Jhajjar Road, State Highway 22, Bhadurgarh-Jhajjar Road, 9 789381 771532 Bahadurgarh, Haryana-124507 625 Bahadurgarh, Haryana-124507 Tel. : 01276699700 Tel. : 01276699700 State Highway 22, Bahadurgarh- Jhajjar Road, Bahadurgarh, Haryana-124507 COMPETITION LAW IN NEW ECONOMY COMPETITION LAW IN NEW ECONOMY EDITOR DR. RAJ KUMAR Head, Department of Law Jagan Nath University, Bahadurgarh, Haryana JAGAN NATH UNIVERSITY State Highway 22, Jhajjar Road Bahadurgarh, Haryana COMPETITION LAW IN NEW ECONOMY Dr. Raj Kumar © Editors Neither publisher nor its editors shall be responsible for any errors, omissions or damage arising out of this information. All rights are reserved. No part of this book may be reproduced or transmitted in any form or by any means or stored in database or retrieval system, without the prior written permission of the editors. The papers published in this book are purely personal views of the author(s) and do not reflect the views of the editors/publisher. The editors/publisher of this book will not take any responsibility for any issue arising out of the contents such as copyright, plagiarism, self-plagiarism etc. ISBN: 978-93-81771-53-2 First Edition: 2016 Price: ` 625.00 Published by JAGAN NATH UNIVERSITY State Highway 22, Jhajjar Road Bahadurgarh, Haryana Phone: 01276 699 700 Printed at: SAVERA PUBLISHING HOUSE 4754, Akarshan Bhawan 23, Ansari Road, Darya Ganj New Delhi-110 002 Ph.: +91-11-23276862, 43551008 Typeset at: PP Computer, West Vinod Nagar, Delhi Foreword It gives me pleasure to write the foreword for the Book on ‘Competition Law in New Economy’. This book is based on the proceedings of the National Seminar organized by the University on this subject on April 23, 2016. The select papers on different topics relating to the theme, contributed by academicians representing various reputed institutions have been included in the book. The book is an attempt to publish papers relating to new competition regime, its scope, ambit and various dimensions in the present era of globalization. Competition law has grown at an incredible rate in recent years in response to the vast changes in economic scenario that have taken place around the world. In this era of globalization, there are various laws which are not only of national importance but rather they require international perspective. The Competition Law is one of such laws and this legislation gained importance in India, when at the advent 21st of century economic globalization was at its full momentum. Introduction of the Competition Act, 2002 was a key step towards India facing competition both from within the country and from international players. The objective of the Act, as stated in the preamble, is basically to provide for economic development of the country and for this purpose to establish a Commission which can prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets. The laws and principles of the international domain have always influenced in developing the national laws. India has a very young competition regime and therefore India can learn from the experiences of more mature international regimes, mainly the EU and US. Indian authorities should examine the ideas and institutions that provide the legal framework for global competition law and how they operate in today’s globalized world. US anti-trust law has always been at the center of the global governance picture, but India can also learn from EU competition law experience which is also rich and varied. This will help India to set up a strong and effective competition regime and will be of great value for future competition law development. Every competition regime has its objectives that it seeks to achieve, some of which may be particularly linked to the peculiarities of the economy of the country. However, it has been widely agreed that the purpose of competition policy is to protect competition in order to maximize consumer welfare. Competition Law not only protects competition but also nourishes it with the aim of social welfare. Competition serves two purposes, firstly it helps in effective and efficient market outcomes and secondly, it helps consumers get a good deal. Competition leads organizations to compete resulting gains to customers by means of the lowest level of costs, innovation or by using their strengths and skills at maximum level. The increasing number of competition regimes in the world itself proves its importance. In a globalized economy, no developing country can survive without a strong competition regime. Trade has essentially become global in nature and markets no more operate only inside the national boundaries. vi Competition Law in New Economy Multinational companies control many sectors while domestic players rely on these companies for sales or supplies. Therefore, developing countries are in a much more need of strong competition policy so that they can ensure that multinational companies do not abuse their market power. Developing countries also have to protect small producers against anti-competitive practices of big companies. In this way, all trade will gain full benefit of globalization. Competition regime also promotes transparency and enhances the attractiveness of a developing economy to foreign investment which in turn maximizes the benefit of such investment to the host country. With this perspective, the Department of Law of Jagan Nath University organized National Seminar on “The Role of Competition Law in New Economy: Issues, Challenges and Opportunities” on April 23, 2016. The focus of the National Seminar was on newly emerging regime of Competition Law in India and the Seminar was conducted successfully with highly motivated participants. This book is in pursuance of this National Seminar and is being introduced to provide in-depth knowledge about the Competition Law in India. This valuable book will be very helpful and enlightening for academicians, scholars, students as well as practitioners, who will get in-depth knowledge of the subject in a very clear style. This book will significantly contribute to the existing literature on the subject and can be used as a path forward to suggest possibilities in the field of competition law. The Book covers well-researched papers on every possible aspect of competition law of India. I congratulate Dr. Raj Kumar, and all other colleagues from Department of Law and Department of Management for successful conduct of the Seminar and for bringing out this Book. I take opportunity to convey thanks on behalf of the University to all the authors who contributed papers for this book. Prof. H.L. Verma Vice Chancellor Jagan Nath University, Haryana Preface Department of Law, Jagan Nath University, Bahadurgarh organized a National Seminar on “The Role of Competition Law in New Economy: Issues, Challenges and Opportunities” on April 23, 2016. The Seminar was a successful event and saw participation of academicians, students, scholars and practitioners from all parts of India. The University is thankful to the Competition Commission of India for nominating its Deputy Director (Law), Mr. K.K. as a Resource Person and Chief Guest for the inaugural function at Seminar. We are thankful to Dr. Somdutt Bhardwaj, Raffles University, Neemrana, Alma Mater of University Aberdeen, Scotland, for accepting our invitation as Guest of Honour. We are also thankful to Sh. Manish Gupta, Chancellor of the University for gracing the occasion and Prof. H.L. Verma, Vice Chancellor for motivating us to organize the Seminar at such a large level. We are grateful to all the subject experts including Dr. Pramod Malik and Dr. Kritika form BPSMV, Khanpur, Dr. Surender from Central University Punjab, Dr. Reeta Garg, Amity Law School Delhi, Prof. S. B. Mishra, BITS Pilani, for gracing the occasion and for accepting the role to act as Chair and Co-Chairpersons in different sessions. This Book on “Competition Law in New Economy” is outcome of the Seminar and consists of select papers contributed by the experts. The Book contains Articles on broad topics including Abuse of Dominant Position, Cartelization, Competition Law and IPR, Combinations and CCI. We are thankful to every participant and contributor of the paper. The papers contributed on Abuse of dominant position include papers of - Tesu Gupta, Jagan Nath University, Haryan, Neha Prajapati and Pooja Awasthi, Amity Law School, Jaipur, Ranjana Dubey, Amity Law School, Noida, who have written on Abuse of Dominance and Competition Law in broad-spectrum. Arunima Prasad and Sunidhi Gupta gave emphasis on E-Commerce and Abuse of Dominance. Atreyi Das from Gujarat National Law University elaborated the situation when refusal to deal becomes an abuse of dominant position. Gopa Chandra Mandal from University of Calcutta has written on Issues and Approaches for developing countries whereas M.A. Saleem Ahmed critically analysed the situation in Indian Context. Isha Saluja, Jagan Nath University, Haryana presented a study on Predatory Pricing in India and its effect on retailers. Joyeeta Banerjee and Rajdeep Banerjee, Advocates tried to remove the confusion which perdures to perplex all. The papers contributed on Competition Law and CCI includes the papers of Preeti Mechan from Gujrat National Law University, who has critically analysed the CCI approach and quantum of penalty. Anita Kurana from Jagran School of Law has written on how the CCI evolved. N. Nisha Devi from Tamil viii Competition Law in New Economy Nadu has written on International Anti enforcement and European Union.