Horizontal Agreements In India
The ICC found that, by exclusive agreements and agreements contrary to the provisions of Section 3(4)(e) in conjunction with Section 3(1) of the Act, Hyundai infringed the provisions by agreements that resulted in the fixing of the resale price. The ICC fined Hyundai INR 87 Crore and found that Hyundai`s anti-competitive conduct in the case included the introduction of agreements to maintain the resale price by monitoring the maximum level of discounts allowed by a rebate control mechanism and also a penalty mechanism for non-compliance with the rebate system. The entry into force of the horizontal agreement is an important step in the EU`s aviation relations with India, a dynamic air transport market with considerable growth potential in the coming years. In the European Commission`s 2015 Aviation Strategy for Europe, India was identified as an important aviation partner with which the EU should develop its relations, first of all through the opening of a new dialogue. The Competition Act extends the definition of cartels to buyer cartels. This amendment will allow the ICC to verify and examine the behaviour of companies, individuals and associations that collaborate on the demand side. However, the proposed amendment should also cover certain efficiency improvement agreements, such as joint tendering and joint public procurement, which have been found to be pro-competitive in the previous decision-making practices of CCIs. The ideal market is one where different market players are independent and hinder each other`s competition. This economic freedom of operators is a sine qua non condition for maintaining free and unhindered competition on any market. At some point, market participants may enter into agreements that limit competition in order to make more money instead of competing with each other. Adam Smith`s words that “people in the same industry rarely meet, even for cheerfulness and distraction, but the conversation ends in a conspiracy against the public or an invention to raise prices” are still applicable and, to some extent, still true today. Section 3 of the Competition Act 2002 (hereinafter referred to as the Act) is intended to prohibit such agreements. This article attempts to examine and analyse various provisions relating to anti-competitive agreements within the framework of the law.