Section 27 of CA, 2002 : Section 27: Orders By Commission After Inquiry Into Agreements Or Abuse Of Dominant Position

Explanation using Example

Imagine a hypothetical scenario where a leading smartphone manufacturer, PhoneMax, has been found by the Competition Commission to hold a dominant position in the market and has been abusing its dominance by enforcing exclusive contracts with retailers, preventing them from selling competitors' smartphones.

Applying Section 27 of The Competition Act, 2002, the Commission could:

• Order PhoneMax to cease enforcing these exclusive contracts and forbid them from entering into similar agreements in the future.
• Impose a financial penalty on PhoneMax, which could be up to ten percent of their average turnover from the last three financial years.
• Require that the terms of the existing agreements be modified to eliminate the anti-competitive clauses as specified by the Commission.
• Direct PhoneMax to comply with other corrective measures, such as paying the legal costs incurred during the inquiry.
• If PhoneMax is part of a larger corporate group, and other entities within the group also contributed to the contravention, the Commission might extend its orders to those entities as well.