Appreciable Adverse Effect on Competition: Factors and Applicability

The main objective of the Competition Act is to stop all those activities that create an adverse effect on competition. There are many ways by which there can be appreciable adverse effect on competition like anti-competitive agreements, combinations and abuse of dominance. The Competition Commission of India prohibits the practices having adverse effect on competition, promote and sustain competition, secure the interests of buyers and guarantee opportunities of trade in the business sector of India. The CCI aims to weed out such practices which have an appreciable adverse effect on competition by restricting anti-competitive agreements. The main focus of this paper is to provide a detailed analysis of the anti-competitive practices having AAEC. The competition laws in India are made keeping in mind the economic advancement of market as well as the economy. The aim is to present the readers with a better understanding of the arrangements which lead to anti-competitive practices and also the factors which help in determining whether such agreements have an appreciable adverse effect on competition in India and how it disturbs the equilibrium of healthy competition and ultimately hampers the economy in a precise manner.