Emergence and Applicability of Competition Act, 2002 in India’s New Competitive Regime: An Overview

Abstract

In the quest of globalization, India has countered positively by opening up its economy, removing controls and resorting to liberalization. Thus, to achieve the objective of maximum economic efficiency, the liberal trade policy must be complimented through a sound competition policy by preventing anti-competitive business practices and unnecessary government intervention.  The Competition Act, 2002 as amended by the Competition (Amendment) Act, 2007, removing the former MRTP Act,1969, follows the philosophy of modern competition laws and aims at fostering competition and at protecting Indian markets against anti-competitive practices by enterprises. The Act prohibits anticompetitive agreements, abuse of dominant position by enterprises, and regulates entering into combinations (consisting of mergers, amalgamations and acquisitions) with a view to ensure that there is no adverse effect on competition in India. In view of this, this article tries to highlight the issues and challenges contained in the Indian Competition Act, 2002 in ensuring competitive business environment. A good competition policy, along with a sound competition law, should help in fostering competition, economic efficiency, consumer welfare and freedom of trade, which should equip the Governments in meeting the challenges of globalization by increasing competition in local and national markets.

Key words: Competition, Act, India, MRTP.