Sri Lanka Consolidated Acts

[Index] [Table] [Database Search] [Name Search] [Previous] [Next] [Help]

Fair Trading Commission Act (No. 1 of 1987) - Sect 12

Monopoly situation

12. For the purpose of paragraph (a) of section 11, a monopoly situation shall be taken to exist-
(1) in relation to the supply of goods of any description in the following cases, that is to say, if-
(a) the prescribed percentage of all the goods of that description which are supplied in Sri Lanka, are supplied by one and the same person, or are supplied to one and the same person, or
(b) the prescribed percentage of all the goods of that description which are supplied in Sri Lanka, are supplied by members of one, and the same group of interconnected bodies corporate, or are supplied to members of one and the same group of interconnected bodies corporate, or
(c) the prescribed percentage of all the goods of that description which are supplied in Sri Lanka, are supplied by members of one and the same group consisting of two or more persons or are supplied to members of one and the same group consisting of two or more persons. The " two or more persons " referred to in this paragraph in relation to goods of any description, are any two or more persons (not being a group of interconnected bodies corporate) who, whether voluntarily or not, and whether by agreement or not, so conduct their respective affairs as in any way to prevent, restrict or distort competition in connection with the production or supply of goods of that description whether or not they themselves are affected by the competition, and with the competition is between persons interested as producers or suppliers or between persons interested as customers of producers or suppliers, or
(d) one or more agreements are in operation, the result or collective result of which is that goods of that description are not supplied in Sri Lanka;,
(2) in relation to the supply of services of any description in the following cases, that is to say, if-
(a) the supply of services of that description in Sri Lanka is, to the extent of the prescribed percentage, supplied by one and the same person, or supplied to one and the same person, or
(b) the supply of services of that description in Sri Lanka is, to the extent of the prescribed percentage, supplied by members of one and the same group of interconnected bodies corporate, or supplied to members of one and the same group of interconnected bodies corporate, or
(c) the supply of services of that description in Sri Lanka is, to the extent of the prescribed percentage, supplied by members of one and the same group consisting of two or more persons, or supplied for members of one and the same group consisting of two or more persons. The" two or more persons" referred to in this paragraph of this section, in relation to services of any description, are any two or more persons not being a group of interconnected bodies corporate) who, whether voluntarily or not and whether by agreement or not, so conduct their respective affairs as the any 'may to prevent, restrict or distort competition in connection with the supply of services of that description, whether or not they themselves are affected by the competition, and whether the competitions is between persons interested as persons by whom, or persons to whom, services are supplied, or
(d) one or more agreements are in operation the result or collective result of which is that services of that description are not supplied in Sri Lanka;
(3) in relation to the export of goods of any description from Sri Lanka in the following cases, that is to say, if-
(a) the prescribed percentage of all the goods of that description which are produced in Sri Lanka, are produced by one and the same person; or
(b) the prescribed percentage of all the goods of that description which are produced in Sri Lanka, are produced by members of one and the same group of interconnected bodies corporate,
(4) in relation to the export of goods of any description from Sri Lanka generally, if-
(a) one or more agreements are in operation which in an way prevent or restrict, or prevent, restrict or distort competition in relation to the export of goods of that description from Sri Lanka; and
(b) that agreement referred to in paragraph (a) or as the case may be those agreements collectively, are operative with respect to the prescribed percentage of all the goods of that description which are produced in Sri Lanka;
(5) if relation to the export of goods of any description from Sri Lanka to any particular market, if-
(a) one or more agreements are in operation which in any way prevent or restrict, or prevent, restrict or distort competition in relation to the supply of goods of that description (whether from Sri Lanka or not) to that market; and
(b) that agreement is or as the case may be those agreements referred to in paragraph (a) collectively, are operative with respect to the prescribed percentage of all the goods of that description which. are produced in Sri Lanka;
(6) for the purposes of this section" prescribed percentage in relation to-:
(a) the supply of goods of any description;
(b) the supply of services of any description; and
(c) the export of goods of any description.
(7) the Commission shall, in making its recommendation to the Minister under subsection (6) examine the share of the market held by any, person or by members of one and the same group of interconnected bodies corporate and decide whether the market power derived as a result of holding of such share of the market can be used for the purpose of-
(a) eliminating or substantially damaging a competitor in the market;
(b) preventing the entry of a competitor into the market; and
(c) deterring or preventing a person from engaging in competitive conduct in the market.


[Index] [Table] [Database Search] [Name Search] [Previous] [Next] [Help]