Competition Act

PRELIMINARY

1.   Short title, extent and commencement-

      1)   This Act may be called the Competition Act, 2002.

      2)   It extends to the whole of India except the State of Jammu and Kashmir.

      3)   It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint:

            Provided that different dates  may   be  appointed  for   different provisions  of this Act and any reference in any such provision to the commencement  of  this  Act shall be construed as a reference  to  the coming into force of that provision.

2.   Definitions.-In this Act, unless the context otherwise requires -

      a)   "acquisition" means, directly or indirectly, acquiring or agreeing to acquire-

            (i)   shares, voting rights or assets of any enterprise;  or

            (ii)   control over management or control over assets of any enterprise;

      b)   "agreement" includes any arrangement or understanding or action in concert,-

            (i)   whether or not, such arrangement, understanding  or  action  is formal or in writing;  or

            (ii)   whether or not such arrangement, understanding or action is intended to be enforceable by legal proceedings;

      c)   "cartel"   includes  an   association  of  producers,  sellers, distributors,  traders or service providers who, by agreement  amongst  themselves,  limit,  control  or attempt to  control  the  production, distribution,  sale  or price of, or, trade in goods or provision  of

services;

      d)   "Chairperson" means the Chairperson of the Commission  appointed under sub-section (1) of section 8;

      e)   "Commission" means the Competition Commission of India established under sub-section (1) of section 7;

      f)    "consumer" means any person who-

            (i)   buys any goods for a consideration which has been paid or promised  or  partly  paid and partly promised, or under any system of  deferred payment  and includes any user of such goods other than the person who buys  such goods for consideration paid or pro ised or partly paid  or partly promised, or under any system of deferred payment when such use is  made  with the approval of such person, whether such  purchase  of goods is for resale or for any commercial purpose or for personal use;

            (ii)   hires  or avails of any services for a consideration  which  has been paid or promised or partly paid and partly promised, or under any system  of  deferred  payment  and includes any  beneficiary  of  such services  other than the person who hires or avails of the services for  consideration paid or promised, or partly paid and partly promised, or  under  any system of deferred payment, when such services are  availed of with the approval of the first-mentioned person whether such hiring or  availing of services i for any commercial purpose or for  personal use;

         g)   "Director  General"  means the Director General  appointed  under sub-section  (1) of section 16 and includes any  Additional,  Joint, Deputy or Assistant Directors General appointed under that section;

         h)   "enterprise" means a person or a department of the Government, who or  which  is, or has been, engaged in any activity, relating to the production, storage, supply, distribution, acquisition or control of articles  or  goods, or the provision of services of any kind,  or  in investment,  or in the business of acquiring, holding, underwriting or dealing with shares, debentures or other securities of any other body corporate,  either  directly  or through one or more of its  units  or is  located at the same place where the enterprise is located or at  a different  place  or  at different places, but does  not  include  any activity of the Government relatable to the sovereign functions of the Government  divisions  or subsidiaries, w ether such unit or division  or subsidiary  nt including all activities carried on by the  departments of  the  Central  Government  dealing with  atomic  energy,  currency, defence and space.

               Explanation.-For the purposes of this clause,-

            (a)  "activity" includes profession or occupation;

            (b)  "article"  includes  a new article and "service" includes  a  new service;

            (c)  "unit" or "division", in relation to an enterprise, includes-

                  (i)   a  plant  or  factory established for  the  production,  storage, supply, distribution, acquisition or control of any article or goods;

                  (ii)   any  branch  or  office established for  the  provision  of  any service;

      i)    "goods" means goods as defined in the Sale of Goods Act, 1930  (8 of 1930) and includes-

            (A)  products manufactured, processed or mined;

            (B)  debentures, stocks and shares after allotment;

            (C)  in relation to goods supplied, distributed or controlled in India, goods imported into India;

      j)    "Member"  means  a  Member  of  the  Commission  appointed  under sub-section (1) of section 8 and includes the Chairperson;

      k)   "notification"  means  a notification published in  the  Official Gazette;

      l)    "person" includes-

            (i)   an individual;

            (ii)   a Hindu undivided family;

            (iii)  a company;

            (iv)  a firm;

            (v)   an  association  of  persons or a body  of  individuals,  whether incorporated or not, in India or outside India;

            (vi)  any  corporation established by or under any Central,  State  or Provincial  Act  or a Government company as defined in section 617  of the Companies Act, 1956 (1 of 1956);

            (vii) any  body  corporate  incorporated by or under the  laws  of  a country outside India;

            (viii) a co-operative society registered under any law  relating  to co-operative societies;

            (ix)  a local authority;

            (x)  every artificial juridical person, not falling within any of  the preceding sub-clauses;

      m)  "practice"  includes any practice relating to the carrying on  of any trade by a person or an enterprise;

      n)   "prescribed" means prescribed by rules made under this Act;

      o)   "price",  in  relation  to  the  sale of  any  goods  or  to  the performance  of  any services, includes every valuable  consideration, whether   direct   or  indirect,  or   deferred,  and   includes any consideration  which in effect relates to the sale of any goods or  to the  performance  of any services although ostensibly relating to  any other matter or thing;

      p)   "public   financial  institution"   means  a  public   financial institution  specified under section 4A of the Companies Act, 1956  (1 of  1956)  and  includes a State Financial, Industrial  or  Investment Corporation;

      q)   "regulations" means the regulations made by the Commission  under section 64;

      r)    "relevant market" means the market which may be determined by the Commission  with  reference  to  the relevant product  market  or  the relevant geographic market or with reference to both the markets;

      s)   "relevant geographic market" means a market comprising the area in which  the conditions of competition for supply of goods or  provision of  services or demand of goods or services are distinctly  homogenous and  can  be  distinguished  from  the  conditions  prevailing  in  the  neighbouring areas;

      t)    "relevant  product  market" means a market comprising  all  those products  or  services  which  are   regarded  as  interchangeable  or substitutable  by  the consumer, by reason of characteristics  of  the products or services, their prices and intended use;

      u)   "service" means service of any description which is made available to  potential  users  and  includes   the  provision  of  services  in connection  with business of any industrial or commercial matters such as  banking,  communication,  education, financing,  insurance,  chit funds,   real   estate,  transport,   storage,   material   treatment,  processing,  supply of electrical or other energy, boarding,  lodging, entertainment,  amusement, construction, repair, conveying of news  or information and advertising;

      v)    "shares" means shares in the share capital of a company  carrying voting rights and includes-

            (i)   any  security  which entitles the holder to receive  shares  with voting rights;

            (ii)   stock except  where a distinction between stock  and  share  is expressed or implied;

      w)   "statutory  authority" means any authority,  board,  corporation, council,   institute,   university or any  other  body corporate, established  by or under any Central, State or Provincial Act for  the purposes  of regulating production or supply of goods or provision  of any  services or markets therefore or any matter connected therewith or incidental thereto;

      x)   "trade"  means  any  trade,  business,  industry,  profession  or occupation  relating to the production, supply, distribution,  storage or control of goods and includes the provision of any services;

      y)   "turnover" includes value of sale of goods or services;

      z)   words and expressions used but not defined in this Act and defined in  the  Companies Act, 1956 (1 of 1956) shall have the same  meanings respectively assigned to them in that Act.  

CHAPTER II