2. Indian economic scenario
3. Economic scenario post independence and need for the MRTP act 4. Trigger cause
5. MRTP act 1969
6. Decline of monopolies and restrictive trade practices (MRTP) act 1969 7. Competition act
* Anti competition agreement
* Abuse of dominance
* Regulation of combination
* Competition advocacy
8. The competition committee of India
9. European competition act
10. Case study:
Tata – Corus deal
Jet – Sahara deal
Tata Motors - Jlr
According to the World Bank ‗Competition‘ is a situation in a market in which firms or sellers independently strive for the buyers support in order to achieve a particular business objective for example, profits, sales or market share. Sometimes firms while competing with one another, adopt restrictive or unfair practices, which are offensive to the core of a competitive market. These practices include fixing prices with rivals, setting price which is lower than cost in order to throw out competitors from the market, taking advantage of a monopoly position and charging unreasonable price, refusal to buy or supply. While increasingly, more countries have undertaken market oriented economic reforms, at the same time more and more countries have either enacted a competition law or scrapped their old laws to enact a new one. India has responded to the current worldwide trend of globalization by opening up its economy, removing controls and resorting to liberalization. As a natural result of this, it was felt that the Indian market should gear up to face competition from within the country and outside. India, for instance, has framed the Competition Act, 2002, to replace the now outgoing Monopolies and Restrictive Trade Practices (MRTP) Act, 1969. The new act named The Competition Act enacted in 2002 is widely known as the ‗antitrust act‘ in United States and ‗European Community Competition Act‘ in Europe. The substance and practice of this act differ from jurisdiction to jurisdiction.
India has adopted the regulations, policies and reforms that give thrust to curbing any kind of monopoly and give emphasis to the competition in the market. Competition act is said to, ― to provide, keeping in view of the economic development of the country, for the establishment of a commission to prevent practices having adverse effect on competition in the market and to protect the interest of consumers so as to ensure freedom of trade carried on by other participants in the markets, in India‖ Objectives:
The preamble of this act states that this is an act to establish a commission, protect the interest of the consumers and ensure freedom of trade in markets in India.
There are some elements or the objectives for the act.
1. To prohibit the agreements or practices that restricts free trading and also the competition between two business entities.
2. Ban the abusive situation of the market monopoly.
3. Provide opportunity to the entrepreneur for competition prevailing in the market. 4. Setup international support and enforcement network across the world. 5. Prevent from anti-competition practices and to promote a fair and healthy competition in the market. INDIAN ECONOMIC SCENARIO
The Industrial Policy Resolution of 1948 was followed by the Industrial Policy Resolution of 1956 which had as its objective the acceleration of the rate of economic growth and the speeding up of industrialization as a means of achieving a socialist pattern of society. In 1956, capital was scarce and the base of entrepreneurship not strong enough. Hence, the 1956 Industrial Policy Resolution gave primacy to the role of the State to assume a predominant and direct responsibility for industrial development. India's political leaders in the years immediately after independence blamed the British administration for having prevented Indian development by failing to improve the education of the masses and by...