COMPETITION LAW

By D. Srujana Naik
BBA LL.B VII SEM
Mahatma Gandhi law college
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Introduction
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✗ Competition law aims to avoid anti-trade
practices in the market by ensuring the
protection of the customers.
✗ This law eliminates domination from the
strong trading enterprises against the
small ones. .
✗ Not only allows the fair trade competition
act 2002 but also protects the interests of
the consumers.

History
✗ Many loopholes were found in the MRTP act, creating a
rigid environment in the market. Where licenses were not
so easily given to the private sector.
✗ The monopolies and restrictive trade practices failed to
achieve their objectives to serve the purpose of their
enactment.
✗ These situations have created a great need for modern
policies.
✗ Competition act in 2002 December which has come into
force with effect on the 31st of March 2003.
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Competition act 2002
 Competition act 2002Competition law aims at
promoting consumer's interests, sustaining
competition in the markets and to protect the
interests of the consumers, and ensuring
freedom of trade.
 Competition act 2002 sets up a commission
called the competition commission of India
(CCI) which mainly focuses on eliminating
practices that adversely the market

Scope of the act
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 Enquire into Anti-competitive
agreements.
 Enquire abuse of dominant
position.
 regulating combination and
mergers.
 Undertaking competition
advocacy.

Anti-competitive agreements
✗ Anti-competitive agreements aims to eliminate
or conduct unfair trade practices in the market.
✗ Competition is good for the market because it
saves consumers from being charged high for
the goods and lets companies offer better
goods at lower prices.
✗ Anti-Competitive measures like price fixing
hampers the growth of the market.
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Horizontal agreements:-
 These are taken place between
parties of the same line of
production for example
agreements between
manufacturers, and agreements
between distributors.
Vertical agreements:-
 Vertical agreements are
between Non-competition
operating at different levels of
processes for example
agreements between
producers, whole-sellers, and
retailers.
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 This refers to the misuse of its position by the good firm or
dominant firm in the market.
 Anti-competitive trade practices may be conducted by the
Dominant firms to maintain or increase their Dominant
position in the market.
 If such practices by dominant firms are found controversial
such practices are to be considered abusive.
 The competition act aims at eliminating such abuse of
dominant position..
Abuse of Dominant Position
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Regulation of combinations
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✗ An illegal combination in the market which aims at
eliminating competition in a certain locality in which
conspirators agree to use devices or to combine for
misleading the market for example price fixing
agreements.
✗ Competition act 2002 aims at regulating such
combinations to avoid illegal combinations.

Competition Advocacy
 International competition Network
defined competition advocacy as
those activities conducted by the
authorities for promoting a market
economic environment and
competitive environment for
economic activities by means of
non-enforcement mechanisms and
by increasing public awareness of
the benefits of competition.
 Section 49 of the competition act
2002 narrates about competition
advocacy. Competition advocacy
was enacted in the new law..
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 Conclusion
1.Competition act 2002 enables fair competition in markets by
eliminating unfair trade practices and provides freedom of trade.
2.This act establishes a competition commission for regulation and
proper supervision.
3. Such modern acts are compulsory for regulating fair trade practices
in the market.
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Thanks!
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