Business Law - Term Paper Example | Topics and Well Written Essays - 1750 words

Business Law - - Term Paper Example The basic premise of this Act is to maintain good competition in the business life of the corporates. Competition Act aims at regulating the competition and defeating the acts by people who have tried to thwart competition in their respective jurisdictions. It has aimed at attempting to draw a line in anti-competitive activities. The Act has been designed in order to pave a way for the extinguishment of anti-competitive activities. The Act had been at the centre of curbing anti-competitive practices which have been performed by the companies who have been trading on in the business circle. â€Å"Legislation enacted by the federal and various state governments to regulate trade and commerce by preventing unlawful restraints, price-fixing, and monopolies; to promote competition; and to encourage the production of quality goods and services at the lowest prices, with the primary goal of safeguarding public welfare by ensuring that consumer demands will be met by the manufacture and sale of goods at reasonable prices.† The new Act defines a ‘dominant position’ ; what constitutes an abuse of such a dominant position and how are they interrelated. As mentioned in the Competition Act, being of the nature of a dominant enterprise does not constitute to an anti-competitive practice, but the fact when such dominant undertakings misuses their power in the competition to restrict it or to have a negative impact on it amounts to an anti-competitive practice which is prohibited in the Indian competition laws. In the case of N. V. Netherlands Banden Industrie Michelin v. Commission of the European Communities , the question arose to the court as to whether or not an enterprise which is dominant in nature leads to the violation of competition laws prevalent in the EU. It was held that â€Å"an undertaking having a dominant position is not a recrimination but simply means that irrespective of the reasons for which it has such a dominant position,