Section 2 - Definitions - Competition Act, 2002

Definitions. 2. In this Act, unless the context otherwise requires,- (a) acquisition means, directly or indirectly, acquiring or agreeing to acquire- (i) shares, voting rights or assets of any enterprise; or (ii) control over management or control over assets of any enterprise; (b) agreement includes any arrangement or understanding or action in concert,- (i) whether or not, such arrangement, understanding or action is formal or in writing; or (ii) whether or not such arrangement, understanding or action is intended to be enforceable by legal proceedings; 2 [ (ba) Appellate Tribunal means the National Company Law Appellate Tribunal referred to in sub-section (1) of section 53A; ] (c) Cartel includes an association of producers, sellers, distributors, traders or service providers who, by agreement amongst themselves, limit, control or attempt to con trol the production, distribution, sale or price of, or, trade in goods or provision of services; (d) Chairperson means the Chairperson of the Commission appointed under sub-section (1) of section 9; (e) Commission means the competition Commission of India established under sub-section (1) of section 7; 4 [ (ea) commitment means the commitment referred to in section 48B; ] (f) consumer means any person who- (i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person, whether such purchase of goods is for resale or for any commercial purpose or for personal use; (ii) hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first-mentioned person whether such hiring or availing of services is for any commercial purpose or for personal use; (g) Director General means the Director General appointed under sub-section (1) of section 16 and includes any Additional, Joint, Deputy or Assistant Directors General appointed under that section; (h) enterprise means 5 [ a person or a department of the Government, including units, divisions, subsidiaries, who or which is, or has been, engaged in any economic activity, relating to the production, storage, supply, distribution, acquisition or control of articles or goods, or the provision of services, of any kind, or in investment, or in the business of acquiring, holding, underwriting or dealing with shares, debentures or other securities of any other body corporate, either directly or through one or more of its units or divisions or subsidiaries, but does not include any activity of the Government relatable to the sovereign functions of the Government including all activities carried on by the departments of the Central Government dealing with atomic energy, currency, defence and space; ] Explanation.-For the purposes of this clause,- (a) activity includes profession or occupation; (b) article includes a new article and service includes a new service; (c) unit or division , in relation to an enterprise, includes- (i) a plant or factory established for the production, storage, supply, distribution, acquisition or control of any article or goods; (ii) any branch or office established for the provision of any service; (i) goods means goods as defined in the Sale of Goods Act, 1930 (8 of 1930) and includes- (A) products manufactured, processed or mined; (B) debentures, stocks and shares after allotment; (C) in relation to goods supplied, distributed or con trolled in India, goods imported into India; (j) Member means a Member of the Commission appointed under sub-section (1) of section 9 and includes the Chairperson; (k) notification means a notification published in the Official Gazette; 6 [ (ka) party includes a consumer or an enterprise or a person or an information provider, or a consumer association or a trade association, or the Central Government or any State Government or any statutory authority, as the case may be, and shall include an enterprise or a person against whom any inquiry or proceeding is instituted; and any enterprise or person impleaded by the Commission to join the proceedings; ] (l) person includes- (i) an individual; (ii) a Hindu undivided family; (iii) a company; (iv) a firm; (v) an association of persons or a body of individuals, whether incorporated or not, in India or outside India; (vi) any corporation established by or under any Central, State or Provincial Act or a Government company as defined in 7 [ clause (45) of section 2 of the Companies Act, 2013 (18 of 2013) ] ; (vii) anybody corporate incorporated by or under the laws of a country outside India; (viii) a co-operative society registered under any law relating to co-operative societies; (ix) a local authority; (x) every artificial juridical person, not falling within any of the preceding sub-clauses; (m) practice includes any practice relating to the carry ing on of any trade by a person or an enterprise; (n) prescribed means prescribed by rules made under this Act; (o) price , in relation to the sale of any goods or to the performance of any services, includes every valuable consideration, whether direct or indirect, or deferred, and includes any consideration which in effect relates to the sale of any goods or to the performance of any services although ostensi bly relating to any other matter or thing; 8 [ (p) public financial institution means public financial institution as defined in clause (72) of section 2 of the Companies Act, 2013 (18 of 2013) and includes a State Financial Corporation, State Industrial Corporation or State Investment Corporation; ] (q) regulations means the regulations made by the Commis sion under section 62; (r) relevant market means the market which may be determined by the commission with reference to the relevant product market or the relevant geographic market or with refer ence to both the markets; (s) relevant geographic market means a market comprising the area in which the conditions of competition for supply of goods or provision of services or demand of goods or services are distinctly homogenous and can be distinguished from the conditions prevailing in the neighbouring areas; 9 [ (t) relevant product market means a market comprising of all those products or services (i) which are regarded as inter-changeable or substitutable by the consumer, by reason of characteristics of the products or services, their prices and intended use; or (ii) the production or supply of, which are regarded as interchangeable or substitutable by the supplier, by reason of the ease of switching production between such products and services and marketing them in the short term without incurring significant additional costs or risks in response to small and permanent changes in relative prices; ] (u) service means service of any description which is made available to potential users and includes the provision of services in connection with business of any industrial or commercial matters such as banking, communication, education, financing, insurance, chit funds, real estate, transport, storage, material treatment, processing, supply of electrical or other energy, boarding, lodging, entertainment, amusement, construction, re pair, conveying of news or information and advertising; 10 [ (ua) settlement means the settlement referred to in section 48A; ] (v) shares means shares in the share capital of a company carrying voting rights and includes- (i) any security which entitles the holder to receive shares with voting rights; (ii) stock except where a distinction between stock and share is expressed or implied; (w) statutory authority means any authority, board, corporation, council, institute, university or any other body corporate, established by or under any Central, State or Provincial Act for the purposes of regulating production or supply of goods or provision of any services or markets therefor or any matter connected therewith or incidental thereto; (x) trade means any trade, business, industry, profession or occupation relating to the production, supply, distribution, storage or control of goods and includes the provision of any services; (y) turnover includes value of sale of goods or services; (z) words and expressions used but not defined in this Act and defined in 3 [ the Companies Act, 2013 (18 of 2013) ] shall have the same meanings respectively assigned to them in that Act. *************** NOTES:- 1 . Inserted vide Competition (Amendment) Act, 2007 dated 24-09-2007 2 . Substituted vide Finance Act, 2017 dated 31-03-2017 before it was read as, 1 [ (ba) Appellate Tribunal means the Competition Appellate Tribunal established under sub-section (1) of section 53A; ] 3 . Substituted vide Competition (Amendment) Act, 2023 dated 11-04-2023 w.e.f. 18-05-2023 before it was read as, the Companies Act, 1956 (1 of 1956) 4 . Inserted vide Competition (Amendment) Act, 2023 dated 11-04-2023 w.e.f. 18-05-2023 5 . Substituted vide Competition (Amendment) Act, 2023 dated 11-04-2023 w.e.f. 18-05-2023 before it was read as, a person or a department of the Gov ernment, who or which is, or has been, engaged in any activity, relating to the production, storage, supply, distribution, acquisition or control of articles or goods, or the provision of services, of any kind, or in invest ment, or in the business of acquiring, holding, underwriting or dealing with shares, debentures or other securities of any other body corporate, either directly or through one or more of its units or divisions or subsidiaries, whether such unit or division or subsidiary is located at the same place where the enterprise is located or at a different place or at different places, but does not include any activity of the Government relatable to the sovereign functions of the Government including all activities carried on by the departments of the Central Government dealing with atomic energy, currency, defence and space 6 . Inserted vide Competition (Amendment) Act, 2023 dated 11-04-2023 w.e.f. 18-05-2023 7 . Substituted vide Competition (Amendment) Act, 2023 dated 11-04-2023 w.e.f. 18-05-2023 before it was read as, section 617 of the Companies Act, 1956 (1 of 1956) 8 . Substituted vide Competition (Amendment) Act, 2023 dated 11-04-2023 w.e.f. 18-05-2023 before it was read as, (p) public financial institution means a public financial institution specified under section 4A of 3 [ the Companies Act, 2013 (18 of 2013) ] and includes a State Financial, Industrial or Investment Corporation; 9 . Substituted vide Competition (Amendment) Act, 2023 dated 11-04-2023 w.e.f. 18-05-2023 before it was read as, (t) relevant product market means a market comprising all those products or services which are regarded as interchangeable or substitutable by the consumer, by reason of characteristics of the products or services, their prices and intended use; 10 . Inserted vide Competition (Amendment) Act, 2023 dated 11-04-2023 w.e.f. 18-05-2023