Legal Aspects of Business

Interim Relief: During an enquiry, the Commission can temporarily stop a party from continuing anti-competitive practices or abusing its dominant position.
Penalties:
- Monetary: Up to 10% of the enterprise's turnover.
- Cartels: Up to 3 times the profits from the cartel or 10% of turnover from all enterprises involved, whichever is higher.
Cease and Desist: Post enquiry, the Commission can instruct an offending enterprise to cease anti-competitive practices or abuse of dominance.
Compensation: The Commission can order compensation for parties affected by anti-competitive behavior.
Modification of Agreements: The Commission has the authority to modify agreements to ensure compliance with competition laws.
Recommendation for Division: If an enterprise holds a dominant position, the Commission may recommend division to the Central Government.

Notice to Show Cause: If the Commission suspects a combination might adversely affect competition, it issues a notice to the concerned parties to justify why an investigation should not be conducted.
Public Notice and Objections:
- The Commission may publicly disclose details of the combination and invite objections from the public.
- It can also hear objections from affected parties.
Verification and Enquiry: The Commission verifies if the combination's disclosure is accurate and assesses its potential adverse effects on competition.

Approval: If no significant adverse effects on competition are found, the Commission approves the combination.
Disapproval: In case of significant adverse effects on competition, the Commission rejects the combination.
Modification: The Commission may propose modifications that are acceptable to the parties involved to mitigate adverse competition effects.

These simplified notes should help you grasp the essentials for your MBA exam preparation.

Legal Aspects of Business | Concepts of Anti-Competitive Practices and Combination Investigations