COMPETITION ACT

Presented by
SHAHID SJ
ABHISHEK KUMAR NR
DIVAKAR V
TRIVENI V HALLUR
BIJOSH P THOMAS
 COMPETITION ACT
 Definition.
 Objectives.
 Important for business
 Advantages
 How competition act protect the consumers
 Components of Competition Act
 MRTP Act
 Difference between MRTP Act and Competition
Act
 COMPETITION ACT 2002
• An act 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, to promote and sustain
competition in markets, to protect the
intrests.
• It was replaced by the MRTP ACT and enacted
in the year 2002.
 OBJECTIVES
Establish a commission to prevent practices
having adverse effect on competition.
Promote and sustain competition in markets.
Protect the interests of consumers.
Ensure freedom of trade in the Indian
markets.
 WHY IS COMPETITION ACT
IMPORTANT FOR BUSINESS ?
• Competition policy is about applying rules to
make sure business and companies compute
fairly with each other.
• This encourage enterprise and efficiency,
creates a wider choice for consumers and
helps reduce prices and improve quality In a
competitive market, prices are pushed down.
HOW DOES COMPETITION ACT AFFECT
BUSINESS?
Competition law affects business positively as
it establishes a business culture which
maintains competition, thus allowing business
to improve and develop in order to remain a
strong competitor in the field.
ADVANTAGE OF COMPETITION ACT
The advantage of having market competition
is that companies are always adding value to
their product.
They can either increase the quality of the
product, or they can decrease the prices
In either of the cases, the products become
more desirable to the customer and they feel
that it is a value for money product.
 HOW DOES COMPETITION ACT
PROTECT THE CONSUMER?
By promote and protect the economic
interests of consumers.
To improve access to information that
consumers require, to make informed choices
according to their individual needs.
To protect consumers from hazards to their
well being and safety.
WHY DO WE NEED COMPETITION ACT
?
o Competition is vital. It forces businesses to
keep prices low and look for innovative ways
of operating and it ensures that consumers
benefits from the best deals, cheapest prices
and most efficient service.
 THE COMPONENTS OF THE
COMPETITION ACT
1) Anti – competitive agreements.
2) Abuse of dominance.
3) Regulation of combinations.
4) Competition advocacy
 MRTP ACT
Monopolies and Restrictive Trade Practices
Act-1969
The MRTP was enacted to ensure that the
operation of the economic system does not
result in the concentration of economic power
in hands of few , to provide for the control of
monopolies, and to prohibit monopolistic and
restrictive trade practices.
 AREA FOCUSED UNDER MRTP ACT
1969
 Prevention of concentration of economic
power to the common detriment.
 Control of monopolies.
 Prohibition of monopolistic trade practices
(MTP)
 Prohibition of restrictive trade practices (RTP)
 Prohibition of unfair trade practices (UTP)
 WHY MRTP ACT REPLACED?
• MRTP act was enacted to deal with
monopolistic, restrictive and unfair trade
practices, but due to certain limitations,
competition act was introduced, which
changed the focus from curbing monopolies
to promoting competition.
 SLOWDOWN OF MRTP ACT
The MRTP act was beyond repair and could
not serve the purpose of the new competitive
environment.
A new (Indian competition act) may be
enacted, the MRTP act may be repealed and
the MRTP commission wound up.
DIFFRENCE BETWEEN MRTP ACT AND
COMPETITION ACT