The MRTP Commission has broad powers to investigate monopolistic and restrictive trade practices in India, including powers of a civil court. A monopolistic trade practice is one that prevents or lessens competition in production, supply or distribution of goods/services. If such a practice operates against public interest, the government may order remedies like regulating production/supply, prohibiting anti-competitive acts, or fixing product standards. The Commission can inquire into such practices on its own or if referred by the government.

1. Monopolistic and Restrictive Trade Practice
Powers of The Commission
The MRTP Commission has the following powers:
1. Power of Civil Court under the Code of Civil Procedure, with respect to:
a. Summoning and enforcing the attendance of any witness and examining him on
oath;
b. Discovery and production of any document or other material object producible as
evidence;
c. Reception of evidence on affidavits;
d. Requisition of any public record from any court or office.
e. Issuing any commission for examination of witness; and
f. Appearance of parties and consequence of non-appearance.
2. Proceedings before the commission are deemed as judicial proceedings within the
meaning of sections 193 and 228 of the Indian Penal Code.
3. To require any person to produce before it and to examine and keep any books of
accounts or other documents relating to the trade practice, in its custody.
4. To require any person to furnish such information as respects the trade practice as may be
required or such other information as may be in his possession in relation to the trade
carried on by any other person.
5. To authorize any of its officers to enter and search any undertaking or seize any books or
papers, relating to an undertaking, in relation to which the inquiry is being made, if the
commission suspects that such books or papers are being or may be destroyed, mutilated,
altered, falsified or secreted.
6. Power of the commission to grant temporary injunctions.
7. Power of the commission to award compensation
8. Power of the commission to award compensation.
9. Enforcement of the order made by the commission under section 12a or 12b
10. Power of the commission to cause investigation to find out whether or not orders made
by it have been complied with
11. Power to punish for contempt

2. Control of Monopolistic Trade Practice
A monopolistic trade practice is a trade practice which has, or is likely to have, the effect of
reasonably preventing or lessening competition in the production, supply or distribution of any
goods or services; limiting technical development and capital investment to the common
detriment; or allowing the quality of goods or services to deteriorate.
RESTRICTION OF APPLICATION OF ORDERS IN CERTAIN CASES.
No order made under this Act with respect to any monopolistic or restrictive trade practice shall
operate so as to restrict –
(a) the right of any person to restrain any infringement of a patent granted in India, or
(b) any person as to the condition which he attached to a license to do anything, the doing of
which but for the license would be an infringement of a patent granted in India, or
(c) the right of any person to export goods from India, to the extent to which the monopolistic or
restrictive trade practice relates exclusively to the production, supply, distribution or control of
goods for such export.
A monopolistic trade practice shall be deemed to be prejudicial to the public interest, if having
regard to the economic conditions prevailing in the country, and to all other matters which are
relevant in the particular circumstances, the effect of the trade practice is or would be:
1. To increase unreasonably the cost relating to the production, supply or distribution of
goods or the performance of any service;
2. To increase unreasonably:
a) The price at which goods are sold, or
b) The profits derived from the production, supply pr distribution of any goods
(including their sale or purchase) or from the performance of any service:
3. To reduce or limit unreasonably competition in the production, supply or distribution of
any goods (including their sale or purchase) or the provision of any service
4. To limit or prevent unreasonably the supply of goods to consumers or the provision of
any service

3. 5. To result in a deterioration in the quality of any goods or in the performance of any
service.
Powers in respect of Monopolistic Trade Practice
1. Section 31 provides that where it appears to the Central Government that the
owners of one or more monopolistic undertakings are indulging in any
monopolistic trade practice, or that monopolistic trade practices prevail in respect
of any goods or services, the government may refer the matter to the MRTP
Commission for an inquiry and the commission shall, after such hearing as it
thinks fit, report to the Central Government its findings thereon.
2. The Commission may make such an inquiry also on its own motion. If such an
inquiry finds that any monopolistic trade practice operates or is likely to operate
against the public interest, the Central Government may pass such an inquiry also
on its own motion. If such an inquiry finds that any monopolistic trade practice
operates or is likely to operate against the public interest, the Central Government
may pass such an orders as it may think fit to remedy or prevent any mischiefs
which result or may result from such trade practice.
3. Any order made by the Central Government in this regard may include an order:
Regulating the production, storage, supply, distribution or control of any goods by
the undertaking or the control or supply of any service by it and fixing the terms of sale
(including prices) or supply thereof
Prohibiting the undertaking from resorting to any act or practice or from pursuing
any commercial policy, which prevents or lessens, or is likely to prevent or lessen,
competition in the production, supply or distribution of any goods used or
produced by the undertaking;
Fixing standards for the goods used or produced by the undertaking.
4. Declaring unlawful, except to such extent and in such circumstances as may be
provided by or under the order, the making or carrying out of any such agreement
as may be specified or described in the order.
5. Requiring any party to any such agreement as may be so specified or described to
terminate the agreement within such time as may be so specified, either wholly or
to such an extent as may be so specified.