Competition Act, 2002


The Competition Act, 2002 was passed by the Parliament in the year 2002, to which the President accorded assent in January, 2003. It was subsequently amended by the Competition (Amendment) Act, 2007.

In accordance with the provisions of the Amendment Act, the Competition Commission of India and the Competition Appellate Tribunal have been established. The Competition Commission of India is now fully functional with a Chairperson and six members. The provisions of the Competition Act relating to anti-competitive agreements and abuse of dominant position were notified on May 20, 2009.

The objectives of the Act are sought to be achieved through the Competition Commission of India (CCI), which has been established by the Central Government with effect from 14th October 2003. CCI consists of a Chairperson and 6 Members appointed by the Central Government.

It is the duty of the Commission to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade in the markets of India.

The Commission is also required to give opinion on competition issues on a reference received from a statutory authority established under any law and to undertake competition advocacy, create public awareness and impart training on competition issues.

MRTP Act, 1969 Vs. Competition Act, 2002

- MRTP Act was based on the pre-liberalisation and globalisation era. Competition Act is based on the post-reforms scenario.

- The objective of the MRTPAct is to prevent concentration of economic power to common detriment to control of monopolies, prevention of monopolistic and restrictive trade practices. The objective of the Competition Act is prevent practices having adverse effect on competition and to promote as well as sustaining the competition to protect consumer interests at market place and ensuring freedom of trade.

- MRTP lists out 14 offences, which are against the principle of natural justice. Competition Act recognises only 4 offences, which are deemed to be against the principle of natural justice.

- MRTP Commission has the power to pass only "Cease" and "Desist" orders. The Competition Act can pass an order to prevent and punish such of those activities, which abuses competition.

- The MRTP Act did not provide for the formation of fund for its activities. The Competition Act provides competition fund for promotion of competition advocacy and creation of awareness about competitive issues and training as may be prescribed in its rules.

- Under MRTP entity having status of dominant position is itself considered as bad. Under Competition Act untity having status of dominant position is not considered as bad. Whereas abuse of dominant position affecting consumer interest is considered as immoral.

- Under MRTP in general registration of agreement was mandatory. Competition Act does not lay down any such requirement for registration of agreements.

- The defination of 'group' was wider. Under Competition Act the 'group' defination has been simplified.

- The size of the firm, is the factor for determining dominance etc. Competition Act focusses on the firm's structure not on the size factor.

- MRTP Commission role was only advisory. Competition Commission can initiate the suo motu proceedings and levy penalties.

- MRTP Commission dealt with the unfair trade practices. Under Competition Act the cases relating to unfair trade practices will be transferrd to consumer courts.

-MRTP was focussed on consumer interest at large. Competition Act  is focusses on public at large.

- The chairman of MRTP Commission was appointed by Central Government. The chairman of the Competition Act will be appointed by a committee consisting of retired judiciary, person having professional expertise in various fields of trade commerce, industry, finance etc. 

Monday, 04th Apr 2016, 12:49:41 AM

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Mohan singh
Useless article
Apr 18, 2018 10:22 AM