AN OVERVIEW OF COMPETITION ACT, 2002

INTRODUCTION

Competition act , 2002 is the product of various experiments carried out in the Indian economy. It has a key role in strengthening the pace of competition law which is a law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as anti-monopoly law in China and Russia. etc. since the 20th century, competition law has become a global  economy. The law aims to promote healthy competition.

It bans anti- competitive agreements between firms such as agreements to fix prices or to carve up markets, and it makes it illegal for businesses to abuse a dominant market position. It contains both criminal and civil provisions aimed at preventing anti‑competitive practices in the marketplace. Thus, it can be stated that competition law has a key role in boosting the efficiency of our economy which became a reason for the implementation of Competition Act , 2002 and also for the establishment of Competition Commission of India. 

IMPORTANT PROVISIONS OF COMPETITION ACT, 2002

The main objectives of the Competition Act, 2002 are: 

  1. To provide the framework for the establishment of the Competition Commission.
  2. To prevent monopolies and to promote competition in the market.
  1. To protect the freedom of trade for the participating individuals and entities in the market.

Under the provisions of The Competition Act 2002, no enterprise shall be permitted to abuse its dominant position. By this we mean that if an enterprise is directly or indirectly imposed of any unfair or discriminatory means to condition in purchase or sale of any sort of goods or services or in prices in purchase or sale of any sort of goods and/or services or by any means limits or restricts the production of goods or services and the market thereof and/or limits or restricts any technical or scientific developments relating to the goods or services to the prejudice towards the consumers. Or indulges in any means o practices which may result in denial of market access or makes any conclusion of contracts which are subject to acceptance to any other parties of any supplementary obligations in their nature or per its commercial usage or in connection to the subject of such contracts. Or used the dominant position in any other relevant market to enter it, then it will have considered the abuse of its dominant position to alter the competition. 

Under The Competition Act 2002, the regulation of combinations means the acquisition of one or more enterprises in the market by one or more persons through a merger or amalgamation of enterprises .

The Act is therefore a new wine in a new bottle. Wine gets better as it ages. The proposed Law provides for a Competition fund, which shall be utilized for promotion of competition advocacy, creating awareness about competition issues and training in accordance with the rules that may be prescribed. The MRTP Act 1969 has aged for more than three decades and has given birth to the new law (the Act) in line with the changed and changing economic scenario in India and rest of the world and in line with the current economic thinking comprising liberalization, privatization and globalization.

CONCLUSION

The purpose of competition act, 2002 is a well planned and exhaustive competition compliance programme that can be of great benefit to all enterprises irrespective of their size, area of operation, jurisdiction involved, nature of products supplied or services rendered and the same is essential for companies, its directors and the delegate key corporate executives to avoid insurmountable hardships of monetary fines, civil imprisonment, beside loss of hard-earned reputation when the Competition Authorities, the media and others reveal the misdeeds in public.

In the changed scenario, India does need a fresh law for competition and a new regulatory authority, which under this policy is the Competition Commission of India.  The law will serve the purpose only if it is made independently, runs independently and is less expensive.

REFERENCES

  1. Wikipedia
  2. www legalserviceindia.com

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

If you are interested in participating in the same, do let me know.

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