09 abr Exclusive Supply Agreement Cci
Are restrictions on the distribution of competing products in distribution agreements applicable during the duration of the relationship or thereafter? As noted in our response to question 1.6, since the law currently does not envisage any voluntary solution mechanism for abuse of dominance or vertical anti-competitive agreements, issues are not resolved by voluntary decisions, even after the TNFEA case. The central government is authorized to exempt any group of companies, agreements or practices from law enforcement (or any of its provisions). While this power is used sparingly, the central government has excluded agreements on the distribution of ships in the line shipping industry from the provisions relating to anti-competitive agreements concerning carriers of all nationalities operating vessels of any nationality from an Indian port. This exemption does not apply to concerted pricing practices, capacity or sales limitations, and the distribution of markets or customers. The ICC has also recently opened an investigation with Asian Paints against allegations that it prevented distributors from purchasing the same or similar products from other sources at lower prices. In its interim order, the ICC found that these restrictions limited the benefits to consumers and affected the character of exclusive supply contracts. (JSW Paints Private Limited vs. Asian Colors Limited.) Given the ICC`s motivation and conclusion in Godrej, it appears that the ICC`s review of the dual-distribution agreements is not only about the report, but also about the operational behaviour of the parties. Supplier control of resale price is generally considered an anti-competitive agreement when it causes or is likely to have significant negative effects on competition in India.
For the purposes of the Competition Act (Indian) 2002 (Competition Act), agreements between the parties regarding the sale of goods at different stages or at different levels of the production chain in different markets are conditional on the condition that the prices that the distributor or buyer must charge for resale, which are prices imposed by the supplier or seller. , are anti-competitive agreements and are inconclusive if they cause a significant disruption of competition (AAEC) in India. This provision is called resale price maintenance (RPM). However, an exception to this restriction is made where it is clearly stated in the agreement that prices below the prices set by the seller may be charged. The parity clauses were not explicitly included in the Competition Act. In its recent report on e-commerce market research in India (2020), the ICC found that parity clauses under Section 3.4 of the Competition Act can be assessed under the basic rules.