Competition Law in India A Comparative Analysis of Emerging Legal Issues

Abstract

The Competition law is meant to preserve and promote competition, as a means to ensure efficient allocation of resources in an economy, resulting in the best possible choice of quality, the lowest prices and adequate supplies to consumers. Competition Law of India finds its jurisprudential and Constitutional basis from Articles 38 and 39 under Part IV (Directive Principles of State Policy) of the Constitution of India. These Articles are a part of the Directive Principles of State Policy. Pegging on the Directive Principles, the first Indian competition law was enacted in 1969 and was christened the Monopolies and Restrictive Trade Practices Act (MRTP Act). The MRTP Act was amended in 1984 prohibiting monopolistic trade practices by widening the definition of the term. There were several reasons for the failure of the MRTP Act. First was the MRTP Act s licensing requirement and strict regulation of growth punished efficiency. Second reason was the MRTP Commission lacked the power to impose substantial penalties for violations. There was lack of clarity with regard to the definition of the term anti-competitive acts. The MRTP Act has become obsolete in certain areas in the light of international economic developments relating to competition laws. We need to shift our focus from curbing monopolies to promoting competition. The Government has decided to appoint a committee to examine this range of issues and propose a modern competition law suitable for our conditions . The Competition Law in India ushers in a new Competition regime in India. It is an important law which needs to be developed to bring an equal playing ground for all and pave the way for greater development in India. newline newline newline