Competition Law promotes or seeks to maintain market competition by
regulating anti-competitive conduct by companies. After independence of India
there were massive changes in economy and trade. Globalization had begun and
hence there was a need to maintain the law and order in the trade practise.
In 1969 the Monopolies and Restrictive Trade Practices Act (MRTP Act) came into
force that was based on the philosophy of the Article 38 and Article 39 under
the Directive Principles of State Policy of the Indian Constitution that stated
the state to secure a social order for the promotion of welfare of the people
and certain principles of policy to be followed by the state.
The MRTP Act basically safeguarded and prevented monopolistic trade practise,
restrictive trade practise and unfair trade practise.
The MRTP Act then underwent amendments in 1974, 1980, 1982, 1984, 1986, 1988 and
1991. The further amendments in the year 1992 and 1994 were based on the
recommendations of Sachar Commitee that recognized the business module of
advertisements and sales ,and also pointed out about the problem of fictitious
bargain that was marketed to the consumers.
During 1990 and 1991 the economic reform in India took place hence there was the
concept of Liberalization, Privatization and this urged the need of new
competition law. In 1999 after the guidelines of the World Trade Organization (WTO)
were released government of India formed a high level committee whose major
focus was the competition policies of the nation.
The committee was named as the Raghavan Committee. The committee then
recommended the setting up of competition commission and winding up of MRTP
Commission as the MRTP Act no longer made relevance with the changing
In November 2000 a new Competition law draft was prepared and presented to the
government and the competition bill was introduced in the parliament. It was
futher then passed and The Competition Act was enacted in December 2002. Hence
the MRTP Act was repelled and replaced by the Competition Act of 2002.
The Competition Act established a quasi judicial body which is bound by the rule
of law in giving decisions, namely the Competition Commission of India(CCI).
THE CCI has all the powers of a civil court for gathering evidence.
The Act is governed by major three elements:
- Anti Competitive Agreement
- Abuse of Dominant Positions
Award Winning Article Is Written By: Ms.Gargi Ganguli
Authentication No: SP226367004281-20-0922