This document summarizes the Competition Act of 2002 in India. The key points are: 1. The Competition Act of 2002 replaced the Monopolies and Restrictive Trade Practices Act of 1969. 2. The objectives of the new Act are to prohibit anti-competitive agreements like cartels, abuse of dominant market positions, and regulate combinations that could reduce competition. 3. The Act covers both horizontal restraints like price fixing and output restrictions, as well as vertical restraints like exclusive dealing and price discrimination.

1. COMPETITION ACT
2002
This Act replaced Monopolies &
Restrictive Trade Practices Act of
1969
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2. Introduction
 The new law on competition came into
being with the passage of the Competition
Act, 2002 (hereafter referred to as “the
Act”) by the Parliament and assented to
by the President on 13th January 2003.
This Act seeks to replace MRTP Act, 1969.
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3. Objectives
In line with prevailing pattern of modern competition laws, the Act
seeks to –
1. prohibit anti-competitive agreements (including cartels), which
determine prices or control or limit or share markets among
players or result in bid rigging.
2. prohibit abuse of dominant position through unfair and
discriminatory prices or conditions (including predatory pricing)
limiting or restricting production, denying market access, etc.
3. regulate combination (acquisition, mergers and amalgamations
etc.) that causes or likely to cause appreciable adverse effect
on competition.
4. entrust the Competition Commission the responsibility of
undertaking competition advocacy, awareness and training
about competition issues.
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4. Restrictive Business practices
covered by Competition Law
Horizontal Restraints
 Price fixing or price rigging.
 Restraint of output
 Allocation of customers among suppliers
 Prevention of other suppliers to
compete in the market.
 Bid-rigging (bidders collude and keep
the bid)
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5. Restrictive Business practices
covered by Competition Law
Vertical Restraints
 Exclusive dealing between producers and
distributors.
 Producer suppliers only to sole-selling
distributors .
 Supplier charges to different parties at
different prices.
 Suppliers sell at low price to drive away
competitors.
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6. Remedies in Competition Act
passing „cease and desist order‟
- providing agreements having appreciable adverse
effect on competition to be void
- imposing penalty upto 10% of the turnover or 3 times
of cartelised profit, whichever is higher
- awarding compensation or damages as per Section 34
- directing modifications to agreements
- in case of combinations, they can be approved with or
without modification or even be refused approval
- in case of dominant enterprise, order can recommend
division as provided in Section 28 of the Act
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