What are anti-competitive agreements under the Competition Act? How far the agreements related to intellectual property are covered under the provisions of the Competition Act?

Section 3 of the Act is the substantive provision in the Indian Competition Law dealing with anti-competitive agreements and arrangements. An anti-competitive agreement is an agreement having an appreciable adverse effect on the competition. Section 3 prohibits any agreement in respect of production, supply, distribution, storage, acquisition or control of goods or services which causes, or is likely to cause an appreciable adverse effect on the competition in India.

Section 3(1) reads as follows:

No enterprise or association of enterprises or person or association of persons shall enter into any agreement in respect of production, supply, distribution, storage, acquisition, or control of goods or provisions of services, which causes or is likely to cause an appreciable adverse effect on the competition within India.

Essential Ingredients

Thus there are two essential requirements to bring into operation section 3(1)-

1. There should be an agreement.
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