A primer on antitrust rules in India relevant for Chinese companies

Since most Chinese companies enter India to tap its growing domestic market, it is imperative for them to familiarise themselves with the provisions of the Indian antitrust laws governing competition.

The Competition Act, 2002 regulates anti-competitive agreements, abuse of dominant position and business combinations. In this article we focus on the first two areas.

Anti-competitive agreements

The Competition Act has employed a fairly wide definition of anti-competitive agreements that includes:

1. horizontal agreements that fix prices, provide discounts, outline areas of operations and customers; limit technological innovation, production or supply; and allow bid rigging or collusive bidding;
2. vertical agreements involving exclusivity for distribution and purchasing, refusal to deal and fixing minimum resale prices;
3. oral or written agreements, arrangements or concerted practice regardless of whether they are enforceable;
4. joint ventures between actual and potential competitors that do not increase efficiencies in production and distribution; and
5. contact among competitors (including exchanging commercially sensitive information).

Santosh Pai and Nusrat Hassan are partners at DH Law Associates. DH Law Associates is the only full-service Indian law firm with an active China practice since 2010