The Competition Act at large focuses on forbidding, respective, agreements between undertakings or concerted practices which may restrict the competition within the market. It forbids all practices, which amount to the abuse of a dominant position in the Market by an undertaking where the practice could potentially, affect trade between its members. The rules of the Act set out the basic framework, providing for the maintenance of effective competition in the market.The Competition Act based on Articles 85 and 86 of the Treaty of Rome provides control to business practices within our market. "The following shall be prohibited as incompatible with the common market: all agreements between undertakings , decisions by associations of undertakings, and concentrated practices which may effect trade between member states and which have as their object or effect the prevention, restriction or distortion of competition within the common market "Therefor any agreement, decision, and practice caught by Section 5(1) must have the following conditions1. There must be some form of collusion between the undertakings2. Trade must be affected3. There must be must some adverse effect on competition.This Section covers such agreements, decisions, practices which:a. Directly or indirectly fix the purchase or selling price or other trading conditionsb. Limit or control production , markets, technical development or investmentc. Share markets or sources of supplyd. Impose the application of dissimilar conditions to equivalent transactions which other parties outside such agreement, thereby placing them at a competitive disadvantagee. Make the conclusion of contrast subject to the acceptance by the other parties of supplementary obligations, which by their nature or according to commercial usage, have no connections, which the subject of such contracts.The competition act analyzes various aspects so as to promote a healthy business environment. It giv...
