Analytical Study of the Concept of Tie-In Arrangement in India

Abstract

Under the Competition Act, Tie-in arrangement is dealt with under the head Vertical Anti-Competitive Agreement. A tie-in arrangement, under this Act, is not illegal per se but if it has an appreciable adverse effect on the competition, then it becomes illegal. Tie-in arrangements have both good and bad effects on the competition. On one hand tie-in arrangements may result in price discrimination, barriers to new entry in the market, monopolisation of the tied and tying products. On the other hand tie-in arrangement may benefit the consumers by providing them with goods or services in a bundle which are required and at lower price. But tie-in arrangements are more likely to adversely affect the economy than being beneficial to the economy.

Keywords: Tie-in arrangement, tying and bundling, analytical study