An agreement based on an agreement resulting from a business relationship can be considered a child of commerce. An agreement in contract law can be defined as the acceptance of an offer. Agreements that generally have negative effects or that distort or restrict competition are called anti-competitive agreements. Section 3 of the Competition Act 2002 defines anti-competitive agreements as any agreement relating to the production, supply, distribution, storage, acquisition and control of goods or the provision of services that has an appreciable effect on competition in India. The anti-competitive effect does not refer to a specific list of agreements, but to specific economic consequences that may result from very different types of agreements on different dates and circumstances. It is generally any act that harms the public interest by unduly restricting competition or unduly impeding the proper flow of trade. With the advent of globalization, the product market has incredibly expanded its horizons. In such a scenario, many companies are trying to gain a competitive advantage over other competing companies in the market. In order to maintain healthy competition in the market, it is essential that competition authorities take note of these activities and formulate sanctions against them. However, the question arises to what extent the Leniency Notice should be applied in the examination of such agreements. Competition authorities are often faced with the dilemma of which activities should actually be banned and which should be, given the competitive advantages they offer in the market.
The first is treated according to the rule itself and the second according to the rule of reason. International Political Economy: Globalization eJournal. . . . Emerging Markets Economics: Industrial Policy & Regulation eJournal. . Subscribe to this paid journal for more articles on the topic The article deals exclusively with the different types of interpretive techniques used by competition authorities in different jurisdictions.
While some adopt the rule per se, others prefer the gentle rule of reason. However, India considers the appreciable negative effects on competition. The paper also examines the role of the judiciary in expanding these rules and the applicability of these rules in the light of the Competition Commission of India. .