Extra‐territorial jurisdiction of Competition Commission of India

Date29 December 2011
Published date29 December 2011
DOIhttps://doi.org/10.1108/13590791211190768
Pages112-119
AuthorAnkesh Jain
Extra-territorial jurisdiction
of Competition Commission
of India
Ankesh Jain
National University of Advanced Legal Studies, Kerala, India
Abstract
Purpose – The purpose of this paper is to find out the jurisdictional power of the Competition
Commission of India (CCI) in order to entertain the combinations taking place outside India having an
impact on India.
Design/methodology/approach – The author has established, with the help of varied case laws,
that CCI has jurisdiction over the combinations taking place outside India and it is supported by the
“Effect Doctrine” and the “Doctrine of Minimum Contact”.
Findings – Merger and Acquisition is a buzzword for the growth of international trade and all the
countries want to secure their interest. By looking at that, it is argued and suggested in this paper that
CCI can take jurisdiction on the above combination when it has any impact on the Indian economy.
Research limitations/implications – There is a scarcity of data available in the public domain
and, with the CCI being in its nascent stage, it is suggested that how and in which situations the
Commission will invoke its jurisdiction.
Social implications This research will help in protecting the interest of the domestic
conglomerates and small businesses in India, as there will be a check system established by the
CCI on all the combinations having an impact on the Indian market and economy.
Originality/value Thispaper has tried toestablish the extra-territorialjurisdictionof the Competition
Commission of India, which was not available to any authority in India prior to the enactment of the
CompetitionAct in 2002. It will help the Indian economy andmarket to grow in a structured manner and
protect it from the combinations taking place outsideIndia having an adverse impact.
Keywords India, Nationaleconomy, Acquisitions and mergers, Competitivestrategy, Trade,
CompetitionCommission of India, Jurisdiction, Inquiry
Paper type Research paper
Introduction
Competition law is an integral part of the regulatory framework in Indian economy.
Competitionincreases economic efficiency,and enhances consumer welfare (Dhall,2005):
The aim of the Competition Commission of India (CCI) is to make markets work well for
consumers through effective competition. The advantages to various sectors arising out of
competition should percolate to consumers and businesses for a level playing field, redressing
against anti-competitive practices, ensuring competitively priced inputs and optimal
realization from sale of assets (Kumar, 2011).
It is stated by Hon’ble Supreme Court of India in Competition Commission of India v.
Steel Authority of India Ltd[1] that both “competition law and policy” and the CCI are at
a very nascent stage within the broad regulatory matrix of the Indian economy. The
main purpose of writing this article is to trace the extra-territorial jurisdiction of CCI.
The object behind enacting the Competition Act 2002 (hereinafter referred to as “the
Act”) was to provide for keeping in view, the economic development of the country,
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1359-0790.htm
JFC
19,1
112
Journal of Financial Crime
Vol. 19 No. 1, 2012
pp. 112-119
qEmerald Group Publishing Limited
1359-0790
DOI 10.1108/13590791211190768

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