CCI to amend cartel formation law

The issue of cartel formation has always been pinching channel partners who
have not got relief despite the fact that the Ministry of Company Affairs has
proposed to amend the existing competition law under Competition Commission of
India (CCI). According to the proposed bill, it treats all such offences as
criminal offences, (it was till now being treated as a civil offence). The
non-compliance would result in a penalty of Rs 1 crore, (currently Rs 10 lakh).
Besides, it has also proposed to extend the period of imprisonment from one year
to three years.

Channel partners say that distributors openly indulge in cartel formation,
and leave dealers with no choice but to follow their conditions. On the basis of
channel feedback, it is apparent that the distributors in various regions are
involved in cartel formation to an extent that they openly declare fixed prices
in the market; and the dealers have to abide by it.

Dealers are now hoping that the proposed bill of CCI be introduced as a law
so that distributors have some fear in them and curb this practice.

Read the complete article on

http://dqchannels.ciol.com/content/reselleralert/107081305.asp

Amrita Tejasvi