Single Economic Entity Doctrine in India

Chirayu Jain
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Abstract

Does the Competition Act 2002 contemplate exclusion of Single Economic Entity Doctrine? Single Economic Entity doctrine entails that a single economic unit acts as one in a marketplace, regardless of its corporate form. Therefore, it ought to be treated as a single unit for antitrust law and policy (for instance, a parent company and its subsidiaries cannot collude with each other). The American and EU jurisdictions have evolved sophisticated tests to assess whether the corporate bodies together form one economic entity or not. The doctrine and the tests are applied by Indian competition authorities as well. However, the Indian Competition Act defines ‘enterprise’ as a firm or person acting in a market either directly or indirectly through its units, divisions or subsidiaries. In a recent case before Competition Appellate Tribunal, it was submitted that since the definition of ‘enterprise’ is provided for in the law, so long as the elements of the definition (which do not include direction and control test as required by single economic entity doctrine) are satisfied, it means that there is only one economic unit, and it ought to be treated as one. This paper examines the veracity of this submission and the implications that would entail if such a submission were to be accepted.
印度的单一经济实体主义
《2002年竞争法》是否考虑排除单一经济实体原则?单一经济实体理论要求一个单一的经济单位在市场中作为一个单位,而不管其公司形式如何。因此,在反垄断法和反托拉斯政策中,它应该被视为一个单一的单位(例如,母公司及其子公司不能相互勾结)。美国和欧盟的司法管辖区已经发展出复杂的测试来评估公司机构是否共同构成一个经济实体。该原则和测试也适用于印度竞争主管部门。然而,《印度竞争法》将“企业”定义为通过其单位、部门或子公司直接或间接在市场上活动的公司或个人。在最近竞争上诉法庭审理的一个案件中,有人提出,由于法律规定了“企业”的定义,只要满足定义的要素(不包括单一经济实体理论所要求的方向和控制测试),就意味着只有一个经济单位,它应该被视为一个经济单位。本文审查了这一提交的真实性以及如果接受这一提交将会产生的影响。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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