Anti Competitive Agreements Section 3
The informant stated that the parties had entered into an exclusive agreement under which the hospital would offer exclusive stem cell services for a fixed registration fee for each start-up cell transferred to Cryobank. The ICC found that the stem cell bank market was in an emerging phase and that there were few players in the market. If, in such a situation, each player enters into exclusive agreements with hospitals to attract more customers, this could seriously hinder the development of competition in the market. In addition, the mode of storing stem cells for use in future medical emergencies may require a long-term link with the stem cell bank, so the choice of a stem cell bank at a time could lead to a sustainable adjustment of the client`s preference for the stem cell bank entrusted to the hospital. The result would be a choice of service provider for customers, the creation of barriers to market entry and the closure of the market for new entrants. Section 3 (1) of the Act provides for a general prohibition on entering into agreements that could create or create an AAEC in India: the law is intended to prevent the practices of parties with AACEs in India. This can guarantee free trade and would protect the interests of all parties, including consumers. However, such an objective would only be achieved if the commercial parties complied with the principles set out in the legislation. It is important that the parties monitor the maintenance of anti-competitive elements in the agreements reached between them during their activities in India. Companies should proactively and thoroughly identify existing anti-competitive elements of their current agreements. Staff can be trained to understand the effects of anti-competitive agreements and understand how they can avoid doing so. If necessary, individuals and businesses can always consult experts who can lead them to a safer option. In addition, this bill can also be interpreted in the light of the e-commerce sector, as it helps to address the inadequacy and inadequacy of the ICC in assessing anti-competitive agreements in digital markets.
It will help the ICC ignore its current approach to anti-competitive concerns in the e-commerce sector. In this sense, agreements on the e-commerce market must no longer comply with the strict classification provided for in paragraph 3, paragraph 4, in order to fall into the category of vertical agreements.