The best results are achieved by discouraging companies from forming cartels. Severe sanctions are therefore a fundamental element of an effective antitrust enforcement policy against hard-line cartels. An important addition to the fines imposed on organizations for antitrust behavior are the sanctions against individuals for their involvement in the conspiracy. Such sanctions may take the form of large fines or, in some countries, custodial sentences. The prospect of incarceration can be a strong deterrent for businessmen considering a deal. When manipulating supply, groups of companies conspiring to increase prices or reduce the quality of goods or services offered in public tenders conspire. Although this anti-competitive practice is illegal, it continues to cost governments and taxpayers billions of dollars each year in OECD countries. The law aims to prevent the practices of parties who have AAEC in India. This can guarantee free trade and would protect the interests of all parties, including consumers. However, such an objective could only be achieved if the parties doing business followed the principles set out in the law.
For parties doing business in India, it is important to monitor the maintenance of anti-competitive elements in agreements between them. Companies should be proactive and conscientiously tasked with identifying existing anti-competitive elements arising from their current agreements. Staff can be trained to understand and avoid the effects of anti-competitive agreements. If necessary, people and companies can always call on experts who can lead them to a safer option. The question here is what would be called anti-competitive. Section 3(2) of the Act provides that the main determinant of an anti-competitive agreement is its AAEC in India. It is important to note that section 32 of the Act provides that even if an agreement was entered into outside India, the ICC would be empowered to review such an agreement if such an agreement had an AAEC in India. During activities in India, the parties are prohibited from entering into anti-competitive agreements. Generally speaking, agreements likely to have or likely to have an adverse impact on competition (AAEC) are anti-competitive agreements. These agreements can be horizontal or vertical. However, the Competition Act 2002 (“Act”) recognizes intellectual property rights and, to facilitate their protection, the Law permits appropriate restrictions imposed by their owners.
Similarly, the law frees up agreements between exporters, as exports do not affect markets in India. The Competition Commission of India (“CCI”) has been empowered to order any company or person to modify, interrupt and not renew anti-competitive agreements and to impose penalties that may amount to 10% of the average turnover of the last three years. . . .