{"id":110414,"date":"2022-10-07T12:54:27","date_gmt":"2022-10-07T07:24:27","guid":{"rendered":"https:\/\/legalwindow.in\/?p=110414"},"modified":"2022-10-07T12:59:51","modified_gmt":"2022-10-07T07:29:51","slug":"comparison-of-competition-laws-between-india-and-uk","status":"publish","type":"post","link":"https:\/\/www.legalwindow.in\/blog\/comparison-of-competition-laws-between-india-and-uk\/","title":{"rendered":"Comparative Analysis of Competition Laws: India vs UK"},"content":{"rendered":"<p><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-110425 size-full\" title=\"Comparison of Competition Laws between India and UK\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/Comparative-Analysis-of-Competition-Laws-India-vs-UK-1.png\" alt=\"Comparison of Competition Laws between India and UK\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Comparative-Analysis-of-Competition-Laws-India-vs-UK-1.png 1200w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Comparative-Analysis-of-Competition-Laws-India-vs-UK-1-600x315.png 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Comparative-Analysis-of-Competition-Laws-India-vs-UK-1-300x158.png 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Comparative-Analysis-of-Competition-Laws-India-vs-UK-1-1024x538.png 1024w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Comparative-Analysis-of-Competition-Laws-India-vs-UK-1-768x403.png 768w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/>Indian Competition Law is widely based on UK legislation and the European Union law seeks the solution for similar nature of issues such as abuse and undue influence of dominant position and restrictive agreements.\u00a0 It is in the late 90s, when the entire world, including India, was struggling through a phase of Privatization, Liberalization, and Globalization when the Competition Act, of 2002 came into effect to regulate the conduct and behavior of the participants in the market and deal with such rising issues.<br \/>\n<\/span><span style=\"font-weight: 400;\">The main purpose of the Competition Law has been to protect and promote healthy competition in the market and to benefit consumers.<br \/>\n<\/span><span style=\"font-weight: 400;\">The Monopolistic and Restrictive Trade Practices (<\/span><span style=\"font-weight: 400;\">MRTP<\/span><span style=\"font-weight: 400;\">) Act, 1969 regulated commercial trade and marketing activities since the independence of the country. However, it was later found incapable of handling the issues and meeting the ends because it had a restrictive area of focus. This article focuses on the factors of differences in the Competition Laws of both countries and their regulatory schemes according to respective markets.<\/span><\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\"><b>Table of Content<\/b><\/p>\n<ul>\n<li aria-level=\"1\"><a href=\"#Abstract\">Abstract<\/a><\/li>\n<li aria-level=\"1\"><a href=\"#of\">Evolution of Competition Laws in India<\/a><\/li>\n<li aria-level=\"1\"><a href=\"#UK\">History of Competition Laws of the UK<\/a><\/li>\n<li aria-level=\"1\"><a href=\"#in\">Statutes in India<\/a><\/li>\n<li aria-level=\"1\"><a href=\"#Laws\">UK Competition Laws<\/a><\/li>\n<li aria-level=\"1\"><a href=\"#Indian\">Indian Enforcement Authority<\/a><\/li>\n<li aria-level=\"1\"><a href=\"#Enforcement\">Enforcement Mechanism of UK<\/a><\/li>\n<li aria-level=\"1\"><a href=\"#Conclusion\">Conclusion<\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 id=\"Abstract\"><b>Abstract<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Competition law manages the threat to healthy competitiveness in the market and reorganizes the situation of market failure led by certain organizations and participants. It is done with the object to provide welfare where economic power is abused in society.\u00a0<\/span><\/p>\n<p><b>Origin of Competition Law: <\/b><span style=\"font-weight: 400;\">Competition Laws were first introduced in the United States with the identity of \u201cAnti-trust law and policy\u201d. The significant legislation included;<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Sherman Act, of 1890<\/span><span style=\"font-weight: 400;\">,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Clayton Act, 1914<\/span><span style=\"font-weight: 400;\">, and<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Federal Trade Commission Act, of 1914\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In the UK, the Competition Act, of 1998 and the Enterprise Act, of 2002 legislations were passed to tackle market trade activities.<br \/>\n<\/span><span style=\"font-weight: 400;\">While on the other hand, In India the MRTP (The Monopolistic and Restrictive Trade Practices) Act got enacted in 1969 but it was later found incapable of regulating Anti-Competitive Practices within the market. This Act was later replaced by the <\/span><span style=\"font-weight: 400;\">Competition Act, of 2002<\/span><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<h2 id=\"of\"><b>Evolution of Competition Laws in India<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">After Independence, most of the policies in India were nationalist in nature and were enforced to achieve social justice on a priority basis. In the beginning, these policies helped the Indian market participants to develop because of two basic reasons:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There was no inter-country competition,<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0Participation in the market was restricted<\/span><\/li>\n<\/ul>\n<p><b>New Economic Policy: <\/b><span style=\"font-weight: 400;\">By the late 90s, NEP (New Economic Policy) was introduced with a view to handle the wave of Liberalization in the Indian market. This increased the level of competition in India as Government control was reduced and the functioning of market forces was allowed to be open with diversity.<\/span><\/p>\n<p><b>Issues of Concern: <\/b><span style=\"font-weight: 400;\">There was a huge gap in the level of income of people and wealth was also not concentrated adequately, these two issues led to the development of a new economic system for the country.\u00a0<\/span><span style=\"font-weight: 400;\">Concerning to the growing needs of society, certain new rules and regulations were needed. The necessity was to ensure that fundamental principles of providing welfare to society were being practiced within the country.\u00a0<\/span><\/p>\n<p><b>Constitutional Direction: <\/b><span style=\"font-weight: 400;\">The term \u2018Socialist\u2019 was included in the preamble of the Constitution of India through the <\/span><span style=\"font-weight: 400;\">42nd Amendment<\/span><span style=\"font-weight: 400;\"> in the year 1976 to achieve a democratic and communist type of socialism.<br \/>\n<\/span><span style=\"font-weight: 400;\">Apart from it, the <\/span><span style=\"font-weight: 400;\">DPSPs<\/span><span style=\"font-weight: 400;\"> (Directive Principles of State Policy) provided directions as a constitutional framework to enact the Monopolistic and Restrictive Trade Practices Act, of 1969.<\/span><\/p>\n<p><b>MTRP Act, 1969 To Competition Act, 2002: <\/b><span style=\"font-weight: 400;\">After liberalization, it was observed that this Act failed to bring changes in the economic system of India, as it only served as a regulatory method for the situations that would be unlawful according to it, whereas the economic system demanded that the entire structure is analyzed and framework is ready to deal with any situation which the changes in the ecosystem will introduce.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The MRTP Act had a narrow approach with respect to the international development of the competition law and there was a requirement for a shift in the perspective of increasing competition in the market from curbing monopolies.<\/span><\/p>\n<p><b>Raghavan Committee: <\/b><span style=\"font-weight: 400;\">As a consequence of the failure of the MTRP Act, of 1969, Raghavan Committee was framed in 1999 to provide an essential solution. The Committee recommended that new legislation relating to competition law must be framed, which can fulfill the necessary administrative requirements of achieving effective allocation of resources.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This committee also recommended that the competition policies and government policies had differences and that newly framed policies would eventually establish harmony between both and benefit the consumers and service providers as well. Conclusively, considering the report of the committee, the Competition Act, of 2002 was enacted in India.\u00a0<\/span><\/p>\n<p><b>The objective of the <a href=\"https:\/\/legalwindow.in\/consumer-protection-act-2019-major-developments-in-consumer-protection-law-of-india\/\" target=\"_blank\" rel=\"noopener\">Consumer Act<\/a>, 2002: <\/b><span style=\"font-weight: 400;\">The objective of this enactment was to provide consumers with an economic system where equal opportunities are given to competitors and resources are consumed productively without their centralization. This objective was considered to create an affordable state of costs for the consumers and to promote healthy competition in the market by protecting the interests of consumers and ensuring trade that is free from influence.<\/span><\/p>\n<h2 id=\"UK\"><b>History of Competition Laws of the UK<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Competition law in the UK evolved from single-structure enforcement to a multiple enforcement system, which functioned by both private and public parties.\u00a0<\/span><\/p>\n<p><b>Monopolies and Restrictive Practices Act, 1948: <\/b>Monopolies and Restrictive Practices Act, 1948 was the first structured framework that was enacted to provide diverse powers to the administrative authorities. However, this enactment did not clarify or observed the rights of the persons affected by unfair trade practices and monopolies in the market.<\/p>\n<p><b>Fair Trading Act, 1973: <\/b>Monopolies and Restrictive Practices Act, 1948 was later replaced by The Fair Trading Act of 1973. Despite the newly framed regulations to deal with the ecosystem and address the issues of the affected persons, there were many loopholes. This enactment was inadequate to be able to privately enforce the rights of individuals through civil suits.<br \/>\nIn furtherance of constantly raising concerns over unfair trade practices, other legislations were enacted such<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Restrictive Trade Practices Act, 1976,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Resale Prices, Act 1976, and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Competition, Act 1980<\/span><\/li>\n<\/ul>\n<p><b>Competition Act, 1998: <\/b><span style=\"font-weight: 400;\">Several legislations failed because of weak enforcement powers of the enforcement authorities. Later in 1998, The Competition Act was enacted to revamp the policies that already existed.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This time the power of regulatory authority was given to a separate Commission, named Competition Commission. Earlier Merger Commission and the Monopolies Commission managed the enforcement of the listed regulations, which were proven as incapable of curbing the problems in the UK.<\/span><\/p>\n<p><b>OFT (Office of Fair Trading): <\/b><span style=\"font-weight: 400;\">To set up a world-class competition regime in the country UK, a white paper was submitted to the Parliament by the Secretary of State in 2001. The title of this white paper was \u2018A World Class Competition Regime\u2019.<br \/>\n<\/span><span style=\"font-weight: 400;\">It demanded a setup of an autonomous competition authority. The Parliament of the UK in furtherance considered this published paper and recognized the recommendation for an OFT (Office of Fair trading).<br \/>\n<\/span><span style=\"font-weight: 400;\">OFT was given special legal powers and staffing and recruitment were improved by it. This paper not only established a new hemisphere of area for diverse issues but also included criminal liability on part of strict cartels causing a decrease in the welfare of the consumers and the entire ecosystem.\u00a0<\/span><\/p>\n<p><b>Present Scenario: <\/b><span style=\"font-weight: 400;\">Today, the powers of enforcement of criminal charges are vested with the Office of Fair Trading, which is seen as the authority without any influence of the state in enforcing and executing laws.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The recommendations of this paper were included in the \u2018Enterprise Act, of 2002 to introduce and encourage private enforcement and criminal sanctions. The power of enforcing the competition laws in the UK is not vested with any single administrative authority. There are multiple supplementary tools made available through which the rights of the people can be protected and enforced.\u00a0<\/span><\/p>\n<h2 id=\"in\"><b>Statutes in India<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">India has the following Statutes relating to Competition:<\/span><\/p>\n<p><b>Competition Act, 2002: <\/b><span style=\"font-weight: 400;\">In 2003, the Competition Act received the assent of the President. The objective of this Act, as suggested by the preamble, is to set up a commission for preventing immoral practices in competition and for promoting healthy competition in the market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This Act also safeguards the interests of consumers by ensuring the freedom to carry trade by any Individual (Open Markets). This Act specifies provisions that mainly focus on\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Anti-competitive agreements,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Abuse of dominant position,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Regulation of combinations,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Enforcement mechanisms, and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reliefs and Remedies to aggrieved\u00a0<\/span><\/li>\n<\/ul>\n<p><b>Section 3: <\/b><span style=\"font-weight: 400;\">Under this Act, a provision for Anti-Competitive Agreements are provided under Section 3. It exclusively prohibits certain agreements restraining trade practices.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The two facets of this provision dealing with the test of violation of the law by the agreement, i.e., whether any law is violated by any agreement that the parties execute, while on the other hand, or if any situation of Anti Competitiveness is established by any such agreement.\u00a0<\/span><\/p>\n<p><b>Inquiry: <\/b><span style=\"font-weight: 400;\">For such agreement, the inquiry process must be conducted by the virtue of Section 19 (1) of this Act.\u00a0<\/span><\/p>\n<p><b>Amendment of 2007: <\/b>After the 2007 amendment, the competition commission can carry out an inquiry to check if any agreement is Anti-Competitive in nature.<\/p>\n<p><b>Section 4: <\/b><span style=\"font-weight: 400;\">Section 4 of the Act provides for a provision to eliminate the Abuse of Dominating Powers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It provides for regulations when any party in power enjoys their powers immorally and dominates the fair share of another individual.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These powers include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0Imposing Unfair Trade Conditions,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Predatory Pricing,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Denial of Market Access,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Limiting the Supply of\u00a0 Services and Goods, and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Market Share of the Enterprise.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">(<\/span><b>NOTE<\/b><span style=\"font-weight: 400;\">: The dominant position is evaluated on the basis of product market and relevant geographic)\u00a0<\/span><\/p>\n<p><b>Section 5: <\/b><span style=\"font-weight: 400;\">Section 5 of the Act defines the Combination and acquisition of one enterprise by another and the merger of two or more enterprises.<br \/>\n<\/span><span style=\"font-weight: 400;\">Its object is to ensure equal representation to small-scale <\/span><span style=\"font-weight: 400;\">industries<\/span><span style=\"font-weight: 400;\"> and that they are not sabotaged by large-scale industries.<br \/>\n<\/span><span style=\"font-weight: 400;\">These provisions are those basic legislative principles that try to eliminate the centralization of wealth to only a few <\/span><span style=\"font-weight: 400;\">firms<\/span><span style=\"font-weight: 400;\"> or organizations. It is the Act of Competition Law, 2002 in India, which provides active remedies to all citizens when their right to equal opportunities is snatched by others.<\/span><\/p>\n<h2 id=\"Laws\"><b>UK Competition Laws<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The United Kingdom has the following Competition Laws:<\/span><\/p>\n<p><b>Competition Act, 1998: <\/b><span style=\"font-weight: 400;\">Chapter 1 of the Act of 1998 in the UK influences the prohibition of any agreement preventing or distorting healthy competition between two parties.<\/span><\/p>\n<p><b>Penalty: <\/b><span style=\"font-weight: 400;\">The penalty for this transaction may be imposed on up to 10% of the turnover of the <\/span><span style=\"font-weight: 400;\">Company<\/span><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><b>Chapter 2: <\/b><span style=\"font-weight: 400;\">Chapter 2 of the Act provides provisions in regard to the abuse of the dominant position. Further, these agreements are excluded:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mergers and concentration (Schedule 1),<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Competition Scrutiny (Schedule 2), and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Other General Exclusions (Schedule 3)<\/span><\/li>\n<\/ul>\n<p><b>Exemptions: <\/b><span style=\"font-weight: 400;\">However, if such agreements in any manner improve the distribution, production, and promotion of technical expertise, in such case exemptions may be granted.<br \/>\n<\/span><span style=\"font-weight: 400;\">The abuse of a dominant position includes the progress of the market and limiting production or becoming a barrier to the welfare or technical development of the consumer.\u00a0<\/span><\/p>\n<p><b>Dominant Parties: <\/b><span style=\"font-weight: 400;\">The abuse of dominant position generally applies to those companies that own a large-scale share in the market which is at least 40 % or more than 40%.<\/span><\/p>\n<p><b>Enterprise Act, 2002: <\/b><span style=\"font-weight: 400;\">The Enterprise Act, of 2002 is the legislation that manages the provisions relating to the OFT (Office of Trade). It includes the general functions, establishment, the procedure to be followed by the OFT.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It also explains the procedure of the Company Law Appellate Tribunal (CLAT). This regulation was enacted to serve provisions relating to:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mergers,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Public interest cases with the interference of the State, and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Enforcement Provisions relating to investigation procedures and reports.\u00a0<\/span><\/li>\n<\/ul>\n<p><b>Part 6: <\/b><span style=\"font-weight: 400;\">Part 6 of this Act works as a directive force for the OFT. It provides the procedure of criminal investigation that the OFT follows an explanation of cartel offenses.<\/span><\/p>\n<h2 id=\"Indian\"><b>Indian Enforcement Authority<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">India has the following Enforcement Authorities:<\/span><\/p>\n<p><b>Committee: <\/b>The Competition Commission of India (CCI) was established in the year 2003 by the Central Government to achieve the objectives mentioned in the Competition Act.<br \/>\nThis commission consists:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0A Chairperson, and<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Six persons are appointed by the Government of India<\/span><\/li>\n<\/ul>\n<p><b>Duties: <\/b><span style=\"font-weight: 400;\">The duty of this commission is basically to remove negative effects on promotion, and competition, and sustain competition. However, the prior aim is always to ensure freedom of trade and protect the interests of consumers.\u00a0<\/span><\/p>\n<p><b>Investigation: <\/b><span style=\"font-weight: 400;\">Several other functions of this commission are investigations into the issues that the State refers to them and creating awareness regarding competition advocacy in India.\u00a0<\/span><\/p>\n<p><b>E-Filing: <\/b><span style=\"font-weight: 400;\">The commission also introduced an official portal where information and the notice of combinations shall be filed vide Form 1.\u00a0<\/span><\/p>\n<p><b>Section 33: <\/b><span style=\"font-weight: 400;\">The power of the commission to pass interim orders to handle that damage is mentioned under Section 33.<\/span><\/p>\n<p><b>Section 19: <\/b><span style=\"font-weight: 400;\">There is a mentioned procedure that the commission has to carry out; this process is well established by the virtue of Section 19 of the Act.<br \/>\n<\/span><span style=\"font-weight: 400;\">This process can be initiated on a suo moto cognizance and also through reference.\u00a0<\/span><\/p>\n<p><b>Reports and Investigation: <\/b><span style=\"font-weight: 400;\">Investigation is conducted by the Director General and he is the authority that frames the report also.\u00a0\u00a0<\/span><\/p>\n<p><b>Result of Investigation: <\/b><span style=\"font-weight: 400;\">There can be two outcomes of the investigation, which include<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">That either there is a contravention of Law, or\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">That there is no such contravention<\/span><\/li>\n<\/ul>\n<p><b>Appeal: <\/b><span style=\"font-weight: 400;\">The appeal against the decision of the Competition Commission of India (CCI) is filed before the <\/span><a href=\"https:\/\/nclat.nic.in\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">NCLAT<\/span><\/a><span style=\"font-weight: 400;\"> (National Company Law Appellate Tribunal).<\/span><\/p>\n<h2 id=\"Enforcement\"><b>Enforcement Mechanism of UK<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The United Kingdom has the following Enforcement Mechanism:<\/span><\/p>\n<p><b>OFT: <\/b><span style=\"font-weight: 400;\">The Office of Fair Trading (OFT) in the UK follows step by step investigation procedure to deal with the issues that are raised. Initially, the information is gathered through various sources.<\/span><\/p>\n<p><b>Process: <\/b><span style=\"font-weight: 400;\">The process is followed informally by the OFT.<\/span><\/p>\n<p><b>Sources: <\/b><span style=\"font-weight: 400;\">The sources include their complaints and research received by the CARTEL HOTLINE. After this hotline receives information, the formal investigation process is started.<\/span><\/p>\n<p><b>Process Initiation: <\/b><span style=\"font-weight: 400;\">When the cartel helpline receives information, they issue notice to gather evidence which are further analyzed and reviewed.\u00a0<\/span><\/p>\n<p><b>Assessment: <\/b><span style=\"font-weight: 400;\">An assessment is done to test the credibility of evidence and if there has been any case of infringement of rights. After such assessment, a report is prepared and given to the parties to seek their reply. It is done to check if there is adequate evidence to constitute the case of infringement on which penalty can be imposed. If no adequate information is gathered the case is not initiated.<\/span><\/p>\n<p><b>Competition and Markets Authority: <\/b><span style=\"font-weight: 400;\">The Competition and Markets Authority (CMA) has replaced The Competition Commission in the UK. This organization works on five strategic goals:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0Deter Wrongful Acts,<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Spread Awareness among <\/span><span style=\"font-weight: 400;\">businesses<\/span><span style=\"font-weight: 400;\">,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Improving Competition within the Market,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Developing Structure for Improving Compliance, and<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Efficient Management of Cases and involving experts from various areas to provide advice to the government on competition<\/span><\/li>\n<\/ul>\n<p><b>Enterprise Act, 2002: <\/b><span style=\"font-weight: 400;\">Part 6 of the Enterprise Act 2002 defines the process of a criminal investigation that the Office of Trading Affairs is given.\u00a0<\/span><\/p>\n<p><b>Section 188: <\/b><span style=\"font-weight: 400;\">A cartel offense is explained under Section 188 of the Act. This provision says that if any arrangement is made by one individual with dishonest intentions:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0To fix the prices of services or products,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Limit or prevent bid rigging or supply\u00a0<\/span><\/li>\n<\/ul>\n<p><b>Power and Penalty: <\/b><span style=\"font-weight: 400;\">In these cases, the Office of Fair Trading has the power to enter the premises to investigate. However, only after obtaining a warrant from the Hon\u2019ble High Court, the OFT would be allowed to initiate such powers, otherwise, they cannot enter any premises to investigate any matter concerned.<\/span><\/p>\n<p><b>Disposal of Documents: <\/b><span style=\"font-weight: 400;\">If any person during the investigation disposes of any document before it is seized or falsely carries malafide intentions, then he would be penalized by imprisonment of 5 years.<\/span><\/p>\n<h2 id=\"Conclusion\"><b><a href=\"https:\/\/legalwindow.in\/trademark-registration\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-110424 size-full\" title=\"Trademark Registration in Jaipur\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/Get-your-Drug-License-from-Expert.-1-1.png\" alt=\"Trademark Registration in Jaipur\" width=\"1000\" height=\"200\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Get-your-Drug-License-from-Expert.-1-1.png 1000w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Get-your-Drug-License-from-Expert.-1-1-600x120.png 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Get-your-Drug-License-from-Expert.-1-1-300x60.png 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Get-your-Drug-License-from-Expert.-1-1-768x154.png 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/a>Way Forward<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The competition law of any country comes to rescue the interests and rights relating to economic structure and the State\u2019s administrative actions. Although the Indian laws are based on UK legislation, still there are lots of differences in their provisions and powers such as entering premises, single vs multifold redress mechanism and etc.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are a lot of differences between the UK and Indian Competition Laws regarding the procedure that the authority follows as well. However, the Competition law of any country, despite differences or similarities should be dynamic to bring the required changes in the situation of the ecosystem and also handle the problems effortlessly because market stability is the prior demand of the affected persons from the authorities under every Competition law.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Indian Competition Law is widely based on UK legislation and the European Union law seeks the solution for similar nature of issues such as abuse and undue influence&hellip;<\/p>\n","protected":false},"author":3,"featured_media":110426,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-110414","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-miscellaneous"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Comparison of Competition Laws between India and UK &#187; 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