validation of ACT, passed by parliament

Querist : Anonymous (Querist) 17 February 2010 This query is : Resolved
Sam co. and ABC co. together have
about 45% of the existing market share in operating systems in the Europe. Sam
co. developed X-Operations bundled with software applications in
Games and the ABC co. developed Y-Operations bundled with software
applications in Entertainment for use in the Personal Computers. In order to enhance
their market share, these companies entered into an agreement on 1.11.2008 to
exclusively share the ‘interoperable’ properties, so that the user of X-Operations
can transfer data to Y-Operations and vice versa.
The Antitrust Division of the Europe Department of Justice initiated civil proceedings on
10.12.2008 against the Sam co. and abc co.. for indulging in
anticompetition and monopolistic activities by bundling software applications in the
operating systems and then entering into an agreement for exclusive sharing of
interoperable properties.
The Sam co. and ABC co. decided to sell their products in India
through their partly owned subsidiaries TC ltd and DC ltd
respectively (as in both the subsidiaries 20 percent of the equity shares were held
by Indians). Advertisements appeared in the print and electronic media highlighting
the features of X-Operations and Y-Operations and their exclusive
“interoperable” compatibility.
Simultaneously, the Government of India received a report from its Embassy in Europe informing about the harmful effects of X-Operations and Y-Operations
on the Indian market. The existing market players in India also petitioned
the Government of India and submitted that these operating systems will have a
prejudicial effect on their market share. In view of this, the Government of India acted
quickly and promulgated an ordinance on 1.1.2009 which was replaced by
an Act of the Parliament viz. Prohibition of the Entry and Sales of X-Operations
and Y-Operations Act, 2009 banning the entry and sales including
licensing for a period of 2 years.

I just want to know….
1.Whether, the Parliament has competency to pass the Act of 2009?
2. whether, the above Act violates article 14,19 and 21 of constitution?

Follow Query

Report Abuse