The Competition Act, 2002

The Competition Act, 2002
Parliament of India
  • An Act to give, 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 interests of consumers and to ensure freedom of trade carried on by other participants in markets, in India, and for matters connected therewith or incidental thereto.
CitationAct No. 12 of 2003
Enacted byParliament of India
Assented to13 January 2003
Commenced31 March 2003
Introduced byArun Jaitley
Repeals
The Monopolies and Restrictive Trade Practices Act, 1969
Status: In force

The Competition Act, 2002 was enacted by the Parliament of India and governs Indian competition law. It replaced the Monopolies and Restrictive Trade Practices Act, 1969. Under this legislation, the Competition Commission of India was established to prevent the activities that adversely affected competition in India.[1][2] This act extends to whole of India.

It is a tool to implement and enforce competition policy and to prevent and punish anti-competitive business practices by firms and unnecessary Government interference in the market. Competition law is equally applicable on written as well as oral agreements and arrangements between or among enterprises and persons.

The Competition Act, 2002 was amended by the Competition (Amendment) Act, 2007 and again by the Competition (Amendment) Act, 2009.

The Act establishes a Commission which is duty bound to protect the interests of free and fair competition (including the process of competition), and as a consequence, protect the interests of consumers. Broadly, the commission's duty is:-

  • To prohibit the agreements or practices that have or are likely to have an appreciable adverse effect on competition in a market in India, (horizontal and vertical agreements / conduct);
  • To prohibit the abuse of dominance in a market;
  • To prohibit acquisitions, mergers, amalgamations etc. between enterprises which have or are likely to have an appreciable adverse effect on competition in market(s) in India.

In addition to this, the Competition Act envisages its enforcement with the aid of mutual international support and enforcement network across the world.

  1. ^ "Sub-section 1 of Section 7 of Competition Act 2002". Indian Kanoon. Retrieved 3 November 2015.
  2. ^ "CCI will be in full operation next year". The Hindu. 11 September 2007. ISSN 0971-751X. Retrieved 19 November 2015.