Anti Competitive Agreements Under Competition Act

Facts – The informant in this case had claimed that the original automotive spare parts manufactured by some of the operations were not freely available on the open market and that most equipment manufacturers (oeMs) and authorized distributors had clauses in their agreements obliging authorized dealers to source spare parts only from OEMs and their authorized suppliers. It is considered to have a significant negative impact on competition in India A cartel must involve the meeting of two or more heads. If the parties believe that a proposed transaction between them is taking place on the basis of the maintenance of a particular state or the adoption of a certain conduct, it would appear that there is an agreement. The law aims to prevent the practices of parties who have AAEC in India. there must be an object, effect or probable effect of the conduct complained of on competition which is significant in the sense of a sensible meaning or relevant to the competition procedure. The Commission also stated that such a distribution structure allowed OEMs to obtain operating prices from their related consumers, improve the operating margin of sales of automotive components compared to the automobiles themselves and have long-term anti-competitive structural effects on the Indian automotive market. Article 3(5) of the Competition Act provides that nothing in Section 3 (prohibition of anti-competitive agreements) limits a person`s right to prevent infringements or to impose reasonable conditions which may be necessary for the protection of his intellectual property rights, that is to say. . .

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