International Competition Law and Practice: A Comparative Analysis

This report offers a comparative analysis of international competition law and practice, focusing on the legal and theoretical issues raised in the UK, South Africa, Australia, India, and the United States. It examines the core principles of competition law, including restrictions on unfair market practices and the protection of small and medium enterprises. The report delves into the impact of international competition law on various countries, exploring legal frameworks, regulatory bodies, and enforcement mechanisms. It provides a detailed examination of the Competition Act in the UK, the Competition Act 2001 in South Africa, and competition policies in Australia and India. The report also addresses the influence of international bodies like the UN and WTO on national competition laws, and the legal provisions related to anti-competitive agreements, dominant positions, and unfair trade practices. The analysis covers the powers and responsibilities of competition authorities, including investigation, penalty imposition, and price regulation, offering a comprehensive overview of the subject.

International Competition
Law and Practice

Table of Contents
INTRODUCTION...........................................................................................................................3
Identify and analyses the legal and theoretical issues raised......................................................3
UK ..............................................................................................................................................4
South Africa................................................................................................................................6
Australia......................................................................................................................................6
India ...........................................................................................................................................7
United States of America............................................................................................................9
Russia........................................................................................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
The competitive law impose restriction on unfair market practice. It main purpose is to
manage market as fair manner. Further, provision of competition law protected the small and
medium enterprises' existence. The competitive and market authority govern by the act of
competition act which regulated the market by various method. Further, this authority has
various power to take action for main market as law provision. Further, this act gives power to
analysis market by different manner and take action according to market condition. In this report
consist of legal issue from which competition act provided protection. On other hand, assorted
kind of international competition law provision which is applied in competition practice along
with concern should address related legal issues 1. Apart from this, in the context of economy
protection, this law also cover political, regulatory and legal dimensions. Lastly, organisation can
protected itself from penalty and sanction along with take competition advantages by applied
rules and regulation of competition act.
Identify and analyse the legal and theoretical issues raised
The international law made by UN for purpose of maintained equality within the market
environment. Further, this law protected the interest of multinational company. So that it main
purpose is to solve the issue related to competition in any country 2. Further, this law applied on
every counties on same basis. Further, this it made easy business environment.
Every of organisation has to followed competitive provision as according to described
manner as requirement of world trade organisations. Thus, this union also emphasis on that
policy of trade over world must be easy and understandable. Furthermore, the government of
every country changed their provision as according to international competition law. In addition,
it is necessary for maintained fair trade environment throughout worldwide area.
In context with EU, the competitive law prepare by EU as according to direction given by
UN for purpose of easy trade facility to trade person. So that, any business not affected by
unfairly by environment 3. The WTO guideline must be followed to EU's member countries. It
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creates cooperation between all countries but some of legal provision effected to EU which as
followed:
Easy trade policy – International competition law followed provision for purpose of maintained
easy trade policy between all member countries. But it also faces the problem regarding reliable
policy because sometime easy policy impact on whole EU market which directly affected to the
EU member countries economics 4. So that this provision largely impact on small and medium
enterprises which operated in the country.
Price policy – The international competition law impact on price policy of countries because this
laws provision cover some rules for determining price on globalization standard so that it
generally not possible for EU to followed price determined policy as per described manner.
Copy and past policy – The EU use copy and past strategies from international competitive law
provision for purpose of similar international businesses. This helps to provided same market
within the territory of EU.
Fair market environment – The EU provided free trade environment between member countries
for purpose of providing growth to economics. So that member countries not required to pay
custom duty for any transit 5. Further, adoption of international provision not only provided fair
trade within member countries but also it is useful for international trade. Therefore, EU made
trade policy with most of the countries so that it is not hard for any organisation to understand
the policy regarding EU.
UK
Law governing the abuse of dominant position
the competition act of UK territory define dominant position is as followed
Any undertaking has power to influence whole UK market by any way like price policy,
good and service monopoly etc., than such type of organization treated as such enterprise
controlled the UK marketplace.
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The law of competition adopted various provision related to international legislation of
competition for purpose of maintained similarity within worldwide area. In addition, this
legislation also govern the CMA authority which obliged to monitoring the area of UK. Indeed,
any of the suspicious activities has found than it has power to controlled such area 6. It is also
liable to charged penalty and gives another punishment like imprisonment etc. to enterprise
which found in unfair activities. Another right is as followed:
 It has right to investigate suspicious area where unfair activities supposed to be arisen.
 It has right to reduced the activities related to unfair trade practice.
 It can charge penalty and gives imprisonment.
 It can determine the price policy.
 It can also decide to product limit.
It must be noted that any of undertaking found in unfair trade practice than such it can
charge penalty of 10% of total world turn-over along with it can dismiss to managing director for
permanent basis. And gives lifetime imprisonment to him.
Anti-competition agreements
The anti-competition agreement state that some pointed which countries must be
considered for purpose of manage fair environment 7. Further, anti-competition agreement
consist of some pointed which any of the organisation has to followed which carried their
operation with UK territory.
 This agreement retracted to the cartel agreement.
 It gives some formula and method on which price can be determined.
 It described some work manner and guidelines which enterprise has to followed for
purpose of maintained work environment better.
Some exemption provided by anti-competition agreement which is as followed:
 Its not applied on invented good and service because of promotion of this type of
activities with wider manner.
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 Government enterprise also exempted from this because of this type of enterprise is set
up for purpose of public wale fare.
 Necessity item also exempted from these agreements it is because of maintained price
stability.
Government right
The provision of competition act gives right to UK government for changes rules and
regulation for purpose of manage market environment 8. Further, authority can changes any
policy by remove or added of provision. It must be noted that government of UK is not obligated
to followed the provision which state in international legislation. When its provision affected UK
internal environment.
Unfair trade practice
The unfair trade practice consist of any activities which related to unjustified activities
which are not complied with provision of UK legislation 9. When any of enterprise dominant to
the market inversely by any way, then such activities cover in unfair trade practice.
it covers some other factor is as followed:
Cartel agreements – This type of agreements made by two or more organisation with in same
industries. Where such organisation fix their price policy for purpose of dominated marketplace.
Some or few enterprise trying to controlled the whole market and retracted new entry for purpose
raise their profitability in higher manner.
South Africa
South Africa affected by competitive act 2001. Further, it is mandatory to be observed that anti-
competitive effect in South Africa as well, so its provision are not applied outside of south Africa
10. Furthermore, if any contract of merger arisen outside south Africa so that such parties have to
notify to government for such merger. And merger amount should not be exceed than
notification amount in case in merger arise within the area of south Africa. On other hand, south
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Africa provided exemption for export cartels 11. It is because of south Africa effect dominantly
on other countries. For example, merger situation widely distorted to sugar marketplace, the
Tribunal focuses to effect on competition of regulative interventions in other jurisdictions. It law
has not power to impact on international trade. The Board of Tariffs and Trade (BTT) is the
responsibility for Anti-dumping disputes and other trade matters. The law connected to
competition authority and trade, further, this policy protected to every organization from every
unfair activities. The Board of Trade and Industries, is responsible for whole procedures and
provided proper solution as described manner 12. This authority also responsible for tariff issues.
Further, commissioner can be participate in such prosecution and may gives appropriate
direction to competitive board. On the basis of analysis of situations of south Africa It provided
import substitution and protection to their organization.
The competition act 1998 also govern competition commission which are answerable for
investigation, controlled and analysis of practice which competition act declared restricted.
Further, it also established a tribunal which is responsible for review whole case situations with
fair manner. And gives punishment as according to state provision. Along with this, it also
forms a competition appeal court which review competition tribunal appeal.
The main purpose of competition act is to provided fair market throughout the south
African territory. Further, It provided open market economy to business entity 13. In addition, it
gives a creditable competition law and effective structure to administration law which is
mandatory for countries development. Apart from this, this legislation protected to consumer
interest and gives more opportunities to new entity for incorporate business.
Dominant undertaking
 If firm hold at least 45% of total market share
 It has market share between 35% to 45% than also it is treated as dominant firm. If
competition commission declare it as dominant.
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 It has less than 35% of market power than also it has power to influence whole market by
their policy.
Abuse dominance prohibited
 Changes a price policy to influence the consumer market.
 When any firm sell product and service at less price than actual cost 14.
 Enterprise aim to harm to another firm interest.
Competition commission authorities
The competition act gives power to competition commission authorities to take restricted
action in case any enterprise find in unfair trade practise. Further, some of the power are as given
below:
 It has right to investigate suspicious area where unfair activities would be arisen.
 It has right to take proper action as requirement.
 right to determined penalty and imprisonment for unfair trade practice.
Australia
The Australian policy competition policy state that Australia policy for competition is
restricted so that it is not allowed to every organization for business purpose. Further, these
countries' retraction the entry of organization by charging high custom duty. Along with rules
and regulation for another multinational company were also restricted so that major company
may survive in Australian competition market but small company not can be survive for long
time period. On other hand, entry policy also were very strict so that it is not possible for every
organization to give application for start business in Australian territory 15. Apart from this, when
Australian government adopted provision of international competition law than market become
fair for business entity and major of enterprise entered in Australian territory. It is because of the
provision of competition made reliable and easy. It affected to in following manner:
 Economy conditions – the adoption of international competition policy helps to growth
economics in wider manner. It is because of many of enterprise easily entered in
Australian market without any restriction.
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 Consumer protection – the anticompetitive act major affected to consumer interest
because it serves unfair trading activities.
India
In the pastime the foreign policy of India was worse where lacks of restriction are
existed. Further, organisation faces problem relates to various of prohibition from any activities
like investment criteria etc. and that time India faces the economic crises where it has Almost
reduced the foreign currency in reserve balance 16. So that government of India decided to
accepted liberalize and privatization policy in the 1991 for purpose of securing the economic
conditions of India. In context, government also adopted the international competition act
provision which are some liberal from previous competition act.
Government of India added the international competition act provision in national
competition act 2002 for purpose of providing similar standard to international business. Further,
it provided various type of exemption for setup business like, similar taxation policy etc.
But relaxation provided by government is gives some negative effected on market as
well. Because various of international company come in Indian territory and start to controlled
market. Some enterprise hold market with more than 50% 17. Furthermore, this wide
involvement of undertaking harm to whole market.
Dominant position, Abuse of dominant position, market power
Section 4 of competition act 2002 define dominant position
 Any of the organisation hold the market either directly or indirectly further, such
enterprise hold some specified power on which it controlled overall market by adopting
dominate policy.
 Undertaking hold power to controlled price of goods and service.
 Some of company influence market by adopting technical changes (Farmer, 2016).
 Undertaking gives item at less price when entered and immediately increase when it
holds the market power.
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17 Visscher, C., Theory and reality in public international law. Princeton University Press.
2015.

 Affected the market by reducing the item.
Law governing the abuse of dominant position
Government of India adopted changes at regular time basis for reducing unfair trade
policy. Further, it also introduces many laws for restricted such unfair policy. The government of
India introduced MRTP act for purpose of manage market environment with effective manner.
Further, this act secure the market environment by imposing various restriction 18. On other hand,
government of India appointed the anti-competitive authority for purpose of find out the pinpoint
area where unfair activities may arise,
Apart from this, government of indie also protected their right in competition act because
it included some pointed which gives right to legislation authority and parliament of India to
changes for purpose of reducing unfair practice.
But government of India can not denial the whole right from worldwide corporation on
dominate market because it is obligated for Indian authority to complied provision with
international competition authorities. Furthermore, it is necessary for manage as requirement of
foreign policy.
International competition law clearly state that business must be reliable within world
territory further, all countries is liable to adopted policy in similar manner so that it restricted to
government of India to changes in competition policy.
All the expert was expected that globalization and liberalization losses to India with
higher manner. But it affected positive because economics of nation raise with higher rate of
graph 19. And gives more profitability to whole GDP.
The main objective of competition act 2002 is as followed:
 Prevent practice having adverse effect on competition.
 Promote to new small and medium enterprise.
 Protected the interest of consumer
 Ensure freedom to every organisation within the marketplace.
Act covers broad area of competition law in India which is as followed:
Anti-competition agreements
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The main purpose of anti-competition agreements is to provided fair environment for corporate
sector 20. This agreements help to reduce negative impact which arise from unfair trade practice.
Further, it limited some right of corporate for reducing their power within market place.
Abuse dominant position – the competition act 2002 govern a competition commission of India
which is liable to maintained market with effectively manner. Further, act gives various power to
such authorities for purpose to restricted the unfair practising.
Combination – some of the organisation dominated the market by using combination method like
merger, amalgamation and acquisition 21. It main purpose is to controlled the market position by
using their power.
United States of America
The U.S. Congress has passed various Anti-trust laws to promote healthy competition and
outlaw all the unfair trade practices prevalent in the market. The Sherman Act, 1890 is one of the
oldest legislation in the nation and prohibited unfair trade practices such as agreements between
competitors to limit competition 22. Further, in the year 1914 the Clayton Act was passed to
govern the changing market scenarios and specifically the mergers or acquisitions taking place
between the companies in the nation. The U.S. Congress then created the new Federal Trade
Commission (FTC) to monitor the unfair trade practices and further investigate and restrict such
methods of anti-competition. Presently, the three anti-trust laws existing in the nation is
enforced by the Bureau of Competition as well as the Department of Justice's Antitrust Division.
These laws have been there for over 100 years now, and have been working with the same
objective to protect the consumers from anti-competitive practices, and the competitors in the
market operate in a fair manner to keep the prices down and serve a good quality of products.
The U.S. Anti-Trust laws have been observed to be working for the protection of the
competition existing within the market. Every aspect or arrangement in restraint of trade or any
process undertaken for monopolization is governed by the Sherman Act. The Supreme Court of
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the nation has opined that the said act does not function to prohibit every restraining trade
practice 23. However, it does work to prohibit every unreasonable unfair trade practice. Section 7
of the Clayton Act specifically prohibits the mergers and acquisitions which may result in
affecting the competition in a unfairly manner or to create monopoly. Discriminatory pricing is
also prohibited by Clayton Act. The FTC Act further governs the unfair practices which may not
clearly come under the Sherman Act. Various unfair trade practices identified by the Anti-Trust
law of the nation and one of them being Abuse of Dominant Position.
Dominant Position is defined by the market share of a single or a group of enterprise in a
relevant market. Various other factors play a major role in determining the dominant position of
an enterprise, some of them being the size and resources, economic power, extent of entry and
exit barriers in the market and countervailing buying power 24. The anti-trust law does not
consider dominance illegal or anti-competitive, however it abuses is considered as one of the
unfair trade practices. Abuse of a dominant position is said to occur in the event the enterprise
holding the dominant position in the relevant market takes a step in an exclusionary or
exploitative demeanor. The Section 2 of the Sherman Act specifically prohibits the act of
 Monopolization;
 Attempt to monopolize
 Conspire to monopolize
Section 2 of the Act, makes the acquisition or maintenance of the power of monopoly
through improper means illegal. The necessities of the section can be divided into two parts. In
order to satisfy the first part of this section it is essential to acquire monopoly in a relevant
market and a wilful attainment of the said position. It is essential to understand the difference
between acquisition of monopoly from growth and development as a result of supply of an
improved product or business acumen or specific incident 25. The said position is not governed
by section 2 of the Act and hence is not illegal in nature. It is further important to understand that
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