...Competition Law & Pharmaceutical Industry Adithya Krishna Chintapanti About CENTAD Undertakes policy research and advocacy on issues related to trade and development, with a primary focus on South Asia. Centad’s work on access to medicines currently focuses on issues pertaining to access in India and aims to Secure a legal and policy environment to ensure access to medicines. Ensure transparency and accountability in public spending on drugs. Examine the impact of industry practices on access. Focus of the Presentation Bring to light anti-competitive practices prevalent in the pharmaceutical industry and healthcare sector. Indicate the approach proposed to be taken for executing the study and analyzing the data collected in pursuance thereof. Broad Scheme of Presentation Indian Pharmaceutical Industry a Snapshot Access to Medicines Situation in India Objectives of the Study Anti-competitive Practices Competition Act 2002 Regulation of Combinations Anti-competitive Agreements Abuse of Dominance Proposed Chapterisation Proposed Methodology 1. 2. 3. Indian Pharmaceutical Industry a Snapshot Net Worth 8 Billion Dollars Growth Rate of 8-9% PA. 4th in the World in terms of Volume of Drug Output Exports to nearly 212 countries @ USD 4795.33 million (2005-06) Has an important role to play in promoting public health and Right to Health. Highly technology and knowledge intensive. Indian Pharmaceutical Industry a Snapshot Industry growth highly dependent on...
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...COMPETITION LAW ASSIGNMENT: Critically examine and analyze the provisions relating to competition law enforcement authorities under the completion act 2010. Look at the weaknesses strengths of the competition law enforcement authorities and make suggestions. HISTORY Before the introduction of the new Competition Act, the Kenyan investment market was unfavorable for competition, as new investors needed financial and political muscle to gain commercial mileage hence companies had to align themselves with political strong men or merge with them, against perceived competitors inorder to carve themselves a niche. This was especially the case for new businesses wishing to operate in sectors with large consumer bases such as telecommunications, information systems, financial services and energy. The objective of the Act is to modernize competition regulation inorder to support the local market economy and consequently deepen consumers’ benefits. The Competition Authority is mandated to promote and safeguard competition in the national economy and to protect consumers from unfair market conduct. The Act applies to all persons including the Government, State Corporation and devolved government in so far as they engage in trade. The mandate is comprehensive and clear as Section 9 defines the tasks as follows: To promote and enforce compliance with the Act; To receive and investigate complaints from legal or natural persons and consumer bodies; To promote public knowledge, awareness...
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...Assignment: Competition in the European Union: The legal framework Assignment: Competition in the European Union The legal framework Case Study Florian Madl BUS 573_Law for Business Executives, CLU 1 Assignment: Competition in the European Union: The legal framework Table of content 1. The Case ........................................................................................ 3 1.1. General .......................................................................................... 3 1.2. Case Description ........................................................................... 3 1.2.1. General Description ...................................................................... 3 1.2.2. Duration of the infringement ....................................................... 4 1.2.3. Geographical scope ....................................................................... 4 1.3. Decision ......................................................................................... 4 2. Analysis of the Case ....................................................................... 5 3. Additional Informations ............................................................. 10 4. Bibliography ................................................................................ 11 2 Assignment: Competition in the European Union: The legal framework 3 1. The Case 1.1. General Case:...
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...a large market, while to some local businessmen, Hong Kong is also good as all people can have their freedoms to start business. To make competitions fairer, the competition law should be introduced. The competition law is especially beneficial to the small companies, which can protect them against any monopolies by big companies. This can minimize the chances of closing down of small businesses, thus ensures a diversity of goods and services to customers. Yet, the article mentioned that some tycoons may oppose the Law, as it seems that the Law would limit the degree of their trades. However, I believe that the Law is also beneficial to these big companies and they can be protected against other big companies of the same industry (as most likely the market is oligopolistic). As customers, we can also have more choices from more firms. Moreover, when there is competition, the firms will seek for ever greater perfection to make their products more competitive. This results in an improvement of qualities. As long as the products are being improved, local products will be more competitive and a bigger overseas market will result. As what the article has mentioned, some lawmakers opposed the competition law because of the draconian penalties. I believe that how much should be the penalty can be discussed later when the competition law is being introduced. And I think a high penalty can actually prevent any unfairness in the industry. Yet, we should consider the companies...
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...AND THE UNFAIR COMPETITION LAWS INTRODUCTION The purpose of this paper is to discuss the name and describe the different types of structural organizations used by multinational corporations. The different organizational structures are the parent company, the nonmultinational enterprise, the national multinational enterprise, and the international multinational enterprise. I will also discuss the home state regulation of multinational enterprises. The forms of regulations discussed in this paper will be the Sherman Antitrust Act, the Clayton Act and the Robinson-Patman Act. Also there effects on business in the 21st century. THE MULTINATIONAL ORGANIZATION The Parent Company To carry out operations internationally, large business have adapted their organizational structures to share risks and to take advantage of economies of scale. The simplest international operating structure is the “nonmultinational enterprise,” in which a firm organized in one country contracts with an independent foreign firm to carry out sales or purchasing abroad. Somewhat more complex is the “national multinational enterprise,” in which a parent firm established in one country establishes wholly owned branches and subsidiaries in other countries. The most complex is the “international multinational enterprise” made up of two or more parents from different countries that co-own operating businesses in two or more countries. (August, R. 2000, International Business Law) The Nonmultinational...
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...Competition Policy: Introduction What is Competition Policy Brief history of competition laws Objectives of competition policy Relationship with other public policy objectives 1 What is competition policy? Definition: Competition Policy aims at ensuring that competition in the marketplace is not restricted in a way that is detrimental to society Why do we need a competition policy? Market failure also in markets without natural monopoly features. Even if entry is possible, dominant positions might persist, due to: • sunk costs industries • lock-in effects and switching costs • network effects 2 What is competition policy, II We need competition policy also because: Un-monitored, firms may resort to actions that increase their profits, but harm society, such as: • • • • Collusion Mergers which lessen competition Predatory behaviour Exclusionary behaviour 3 Competition policy vs. regulation Both justified by market failures, but they differ by: Procedures and control rights • Regulation: more extensive powers (price, investments, products…), intervenes on market structure Timing of oversight • C.P.: ex-post; regulation: ex-ante • C.P.: usually more time • Occasional vs. continuous intervention Information intensiveness • Industry-specific for regulation 4 Demarcation lines become fuzzier Despite these differences, the distinction between competition and regulation is less clearcut: Merger control: preventive authorization...
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...COMPETITION COMMISSION OF INDIA A REVIEW OF THE COMPETITION ISSUES IN THE REAL ESTATE SECTOR: AN ANALYSIS OF THE POSITION POST DLF CASE INTERNSHIP REPORT DECEMBER 2012 SUBMITTED BY: Kirti Dashora, IV Year, Gujarat National Law University (GNLU), Gandhinagar A REVIEW OF THE COMPETITION ISSUES IN THE REAL ESTATE SECTOR: AN ANALYSIS OF THE POSITION POST DLF CASE ACKNOWLEDGEMENTS The successful completion of this project could not have been completed without the valuable guidance and insights of many people. I would like to thank Mr. Yogender Chaudhary, Adviser (Law) for guiding me throughout my internship period. I would also like to thank Ms. Bhawna Gulati, Deputy Director (Law) for providing me helpful suggestions regarding the project. I also thank all the officers in the Commission who provided knowledge of the working of the Commission during the rotation exercise. The library staff also provided help whenever it was required. Page 2 A REVIEW OF THE COMPETITION ISSUES IN THE REAL ESTATE SECTOR: AN ANALYSIS OF THE POSITION POST DLF CASE TABLE OF CONTENTS ABSTRACT…………………………………………………………………………………5 OVERVIEW OF THE REAL ESTATE SECTOR IN INDIA…………………………..….6 Regulation of the Sector………………………………………………………..……7 The Real Estate (Regulation and Development) Bill, 2011………………………....7 ABUSE OF DOMINANCE IN THE REAL ESTATE SECTOR……………………..……9 Relevant Market…………………………………………………………………..…9 Assessment of dominance………………………………………………………..….9 Abuse of dominance……………………………………………………………...
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...COMPETITION CONCERNS IN FILM INDUSTRY 2013 A RESEARCH PROJECT ON COMPETITION CONCERNS IN FILM INDUSTRY UNDER THE GUIDANCE OF DR. K.D. SINGH DEPUTY DIRECTOR (LAW) COMPETITION COMMISSION OF INDIA BY TULIKA SINGH, VTH YEAR STUDENT OF B.A. L.L.B. (HONS.) AT CHANAKYA NATIONAL LAW UNIVERSITY, PATNA COMPETITION COMMISSION OF INDIA Page 1 DISCLAIMER COMPETITION CONCERNS IN FILM INDUSTRY 2013 This project report has been prepared by the author as an intern under the Internship Programme of the Competition Commission of India for the period of one month from 7th January 2013 to 31st January 2013, for academic purposes only. The views expressed in the report are personal to the intern and do not reflect the views of the Commission or any of its staff or personnel and do not bind the Commission in any manner. This report is the intellectual property of the Competition Commission of India and the same or any part thereof may not be used in any manner whatsoever, without express permission of the Competition Commission of India in writing. COMPETITION COMMISSION OF INDIA Page 2 ACKNOWLEDGEMENT COMPETITION CONCERNS IN FILM INDUSTRY 2013 This research project is undertaken by me as a part of Internship programme of Competition Commission of India. Dr. K. D. Singh, Deputy Director (Law) at CCI guided me through this project. His invaluable inputs and suggestions are deeply acknowledged. Library Staff of CCI also helped me throughout the internship period...
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...WHY IS COMPETITION IMPORTANT FOR GROWTH AND POVERTY REDUCTION? Nick Godfrey Session 1.3.: Competition policy This paper was submitted in response to a call for papers conducted by the organisers of the OECD Global Forum on International Investment. It is distributed as part of the official conference documentation and serves as background material for the relevant session in the programme. The views expressed in this paper do not necessarily represent those of the OECD or its member governments. OECD Global Forum on International Investment OECD Investment Division www.oecd.org/investment/gfi-7 Table of Contents Executive Summary Introduction How is Competition Policy Linked to Growth and Poverty Reduction? A. Competition policy B. Competition policy and growth C. Competition policy and poverty reduction Competition in Developing countries The Competition Assessment Framework Background Content How to select sectors and markets for assessment 3 3 4 4 4 5 5 8 8 9 9 Identify the relevant markets and the competitors Examine the market structure Look for barriers to entry Ascertain if government policies or institutions limit competition Consider vested interests Look for signs of anti-competitive practices actions by firms Draw conclusions Conclusions References 9 9 9 9 10 10 10 11 12 Department for International Development, London OECD Global Forum on Investment, March 2008 2 Why is Competition Important for Growth and Poverty Reduction? ...
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...However, this redistribution is usually not feasible. It is difficult to ascertain what proportion of the profits of an enterprise is attributable to monopoly power and it is even more difficult to locate all buyers and reimburse them an amount proportional to their purchases. How can society, then, limit the market power and prevent the anti-competitively use of it? In the case of a natural monopoly, i.e. an electricity/power company, the solution is a direct regulation of the price. But more generally, the solution is to prevent companies from acquiring excessive market power and limit the use of that power if they already have it. In the United States, the regulation is made by the antitrust laws: a set of laws and regulations to promote competition in the economy by banning everything that...
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...(Pty) Ltd. Case no: 12/CAC/Dec01. This was decided in the Competition Appeal Court of South Africa (‘CAC’) in 2003. The panel members were Jali JA, and Malan AJA, who all concurred with the written judgement of Davis JP. Facts The parties are: American Natural Soda Ash Corporation and CHC Global (Pty) Ltd (‘Ansac’) as the first and second appellant respectively, and, the Competition Commission of South Africa, Botswana Ash (PTY) Limited (‘Botash’), Chemserve Technical Products and The Minister of Trade and Industry as the first to fourth respondents respectively. Ansac is an American Corporation formed by five soda ash producers to export soda ash, and CHC Global is Ansac’s local distributor. Botash is a Botswanan distributor of Soda Ash (a competitor to Ansac), and Chemserve is Botash’s South African distributor. Botash submitted an application for interim relief against Ansac in October 1999, raising the question of whether Ansac’s activities – price-fixing – contravenes the South African Competition Act’s prohibition on restrictive horizontal practices found in section 4 of the Act. This application was later withdrawn when the Commission investigated the complaint, and itself concluded that Ansac was involved in prohibited conduct. The Commission filed its complaint referral in April 2000 and Botash later secured the Tribunal’s leave to serve an intervening complaint against Ansac. In March 2001, the Competition Tribunal (‘CT’) held that s 4(1)(b) required no display of...
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...C O V E R S T O R I E S R O U N D TA B L E C O M M E N TA R Y Transatlantic Divergence in GE/Honeywell: Causes and Lessons BY DONNA E. PATTERSON AND CARL SHAPIRO welcome, even when they are predicted to cause leading firms to gain market share. Second, the procedures in place in Europe contributed to the ability of the Competition Commissioner to block the proposed merger of GE and Honeywell based on dubious economic grounds and very weak evidence. In particular, the absence of timely and independent judicial review of the Commissioner’s decision that a combination is incompatible with the Common Market gives enormous discretion to the Competition Commissioner and to the Commission’s Merger Task Force. We discuss below how the interplay of these two trans-Atlantic differences led to the divergent results in GE/Honeywell. The EU’s Conglomerate Case A key driver of the proposed merger was the desire of GE and Honeywell to combine their complementary product lines in the civil aerospace industry.2 GE makes, sells, and services large aircraft engines. Honeywell, itself the result of a 1999 merger between Allied Signal and Honeywell, makes small aircraft engines, various avionics components, and other “non-avionics” components, such as environmental control systems, wheels and brakes, and auxiliary power units. At its heart, the merger was neither horizontal nor vertical, but conglomerate. In fact, the GE/Honeywell merger was remarkably “clean” in terms of horizontal...
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...The Agreements ……………………………………………………………….. 3 3. Economic Impact on Competition 3.1 The Nature of a Carte………………………………………………………………… 4 3.2 Welfare analysis ……………………………………………………………………… 5 4. The European Commission`s decision 4.1. The decision…………………………………………………………………….. 7 5. Conclusion………………………………………………………………………… 8 References………………………………………………………………………………. 9 1. Introduction The European Commission (EC) convicted eleven companies in the thread industry for arranging cartels for customers in Benelux, the Nordic countries and the EEA in 2005. The 23 producers investigated are from Germany, Belgium, the Netherlands, France, Switzerland and the United Kingdom and were fined to a total of 43.5 million € (European Commission, 2005). Industrial thread itself is a kind of thin yarn that is used for sewing. It is therefore a main component in the production of various products, such as clothes, home furnishings, mattresses, footwear and others. Additionally, the production of automotive seats and seatbelts can be assigned to the so called automotive thread. Both markets together amounted to around 6 billion € in in sales worldwide in 2000. The antitrust investigation revealed that some companies in fact arranged illegal meetings to collude upon target prices. Such behavior is anticompetitive and harms consumers and overall competition. It needs to be abolished as well as prevented in the future. This raises...
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...Brigden 509140621 Competition policy and regulatory mechanism on Rio Tinto We will be looking at the following UK Company in relation to competition policy and regulatory mechanism: Rio Tinto is a leading global UK and Australian mining and metals company. The Head office is in London UK. It was Founded in 1873 (Tinto, 2016). There are four pillars of regulatory mechanism and competition policy in the UK and The European Commission. The legislation is contained in (Article 101 of the Treaty on the Functioning of the European Union (1958)(i.e. Antitrust & cartels, Market liberalization, State aid control, Merger control) (EU, 2012). The World Bank issued a paper on Competition policy and regulatory mechanisms for the global business community and most of the countries in the world are following these principals (Rimmer, 2016). Antitrust Agreements between two or more firms which restrict competition, such as price fixing or market sharing Attempting to push a rival out of the market by predatory pricing is called Abuse of dominant position. Since 2004, national regulators (e.g. the UK) apply the EU rules. The rules apply to trade between member states in the common market. Mergers If a merger involves organisations with a turnover above a combined worldwide sales of €5bn, and €250m within the European common market it may be examined solely by the European Commission. The merger may be restricted or prevented if it impedes competition significantly and ...
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...Antitrust Laws & Their Effects Jamar Averyhart Dr. Law Trine University In order to have a free economy you must have a competitive market place. A market that is open and stimulates the economy. This gives consumers whether they are organizations or just regular citizens the opportunity to purchase consumer goods at a relatively low price. As opposed to other economies that are not open markets, and that have one firm dominating the market place. Which drives up the price of consumer goods and make them unreasonably high. This is where antitrust laws come into play ("The Antitrust Laws," 2015). What are antitrust laws? Antitrust laws keep organizations from creating monopolies in industries, or colluding to drive up the price of items. If two major firms i.e. Apple and Microsoft were to merge. They control a large majority of the marketplace in the computer industry. This merger would lead to a shift in the price of computer and computer technology. It would create unequal competition and drive many other firms out of business. With the resources and consumer base that both companies have they would be able to dictate the prices in the industry and not have to rely on consumer demand and market trends. The first ever antitrust law was passed in 1890 which was the Sherman Act ("The Antitrust Laws," 2015). The Sherman Act made it illegal to try to form a monopoly, have a monopoly, or plan to have one. ("The Antitrust Laws," 2015) With the Sherman Act violating any...
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