CCI to probe Google’s ‘abuse’ of position Flashcards
What’s the case?
Multiple instances of abuse of dominant position including pre-installation of GPay on Android OS smartphones and use of Google Play’s in-app billing as the method of payment by developers
[ABUSE OF POSITION -> PREINSTALLS GPAY ETC.]
What is Section 4 of Competitions Act?
pertains to abuse of dominant market position.
What is Competition Commission of India?
-statutory body
[STATUTORY]
-responsible for enforcing the Competition Act, 2002 throughout India
[IMPLEMENTS COMPETITION ACT 2002]
-prevent activities that have adverse effect on competition
What are functions of CCI?
- promote and sustain competition
- protect the interests of consumers and ensure freedom of trade
[TRADE FREEDOM ; CONSUMER INTERESTS]
- give opinion on competition issues
- undertake competition advocacy
- create public awareness
[PUBLIC AWARENESS]
-impart training on competition issues
[TRAINING]
Objectives of the competition Act 2002?
-protect consumers’ interest by providing good products & services at reasonable prices.
[PROTECT CONSUMER INTEREST]
-promote healthy competition
-prevent interests of smaller companies / prevent abuse of dominant position
[PROTECT SMALL COMPANIES]
-prevent practices which have adverse impact on competition
-ensure freedom of trade
[FREEDOM OF TRADE]
-regulate the operation and activities of combinations (acquisitions, mergers and amalgamation).
What are three ways according to act which can have adverse effect on the competition?
- Anti competitive agreement (vertical agreement, horizontal agreement)
- Abuse of dominant position; enjoying a dominant position will not be crime but its abuse will be a crime
- Elimination/reduction of competitors in the market achieved through acquisition, mergers, and amalgamation
[ANTI COMPETITIVE AGREEMENT ; ABUSE DOMINANT POSITION ; ELIMINATE COMPETITION]
What is a vertical agreement
A vertical agreement is a term used in competition law to denote agreements between firms at different levels of the supply chain. For instance, a manufacturer of consumer electronics might have a vertical agreement with a retailer according to which the latter would promote their products in return for lower prices
[B/W FIRMS OF DIFFERENT LEVELS]
What is horizontal agreement?
Horizontal agreements are arrangements between enterprises at the same stage of the production chain and that is generally between two rivals for either fixing prices or for limiting production or for sharing markets.
[B/W SAME LEVEL EX.RIVALS (COKE V/S SPRITE]
