According to Competition Act 2002, Agreement Means Agreement Made Between

The Competition Act 2002 is a law enacted by the Indian Parliament to promote competition in business practices and protect consumers from anti-competitive behavior. One of the key provisions of this law is the definition of the term « agreement. » In this article, we will explore what the Competition Act 2002 means by the term « agreement » and its implications for businesses in India.

According to the Competition Act 2002, an agreement is defined as any arrangement, understanding, or action taken by two or more parties to regulate their conduct in a particular market. This can include formal contracts, as well as informal understandings and practices. The Act also specifies that such agreements can be written or oral and can be expressed or implied.

One of the key focus areas of the Competition Act 2002 is to prevent anti-competitive behavior in the market. Therefore, the Act also specifies that an agreement that creates an appreciable adverse effect on competition in the market is considered to be anti-competitive and is prohibited.

For example, if two companies in the same market agree to fix prices, allocate customers, or limit the production of goods or services, it is considered an anti-competitive agreement. Such agreements are prohibited by the Competition Act 2002, and the parties involved can be penalized for engaging in such behavior.

However, not all agreements are anti-competitive. In fact, many agreements can be beneficial for consumers and the market as a whole. For example, an agreement between two companies to collaborate on research and development, share technology, or jointly market a product could benefit consumers by improving product quality and reducing prices.

Therefore, the Competition Act 2002 also provides for the exemption of certain agreements from the prohibition on anti-competitive agreements. To be exempted, an agreement must meet certain criteria, such as promoting technical progress or improving efficiency in production or distribution.

In conclusion, the Competition Act 2002 defines the term « agreement » broadly to include any arrangement, understanding, or action taken by two or more parties to regulate their conduct in a particular market. Such agreements can be beneficial or anti-competitive depending on their nature and effect on competition. Businesses should be aware of the provisions of the Competition Act 2002 and ensure that their agreements comply with the law.