Consumer Welfare Standard In Relation To Online Merger

Pranjal Chaturvedi & Aishwarya, B.A.LL.B, School of Law, Sharda University

ABSTRACT

We are in the age of technology, and the conventional definition of the market has turned obsolete. Today's market is geographical place vis-à-vis a virtual platform. Not only for goods, today we are enjoying services virtually. In the virtual arena, due to less reach and a weak consumer base, the competition is already less. When the competition is less, the mergers and acquisitions by a few tech giants create oligopoly and monopoly in the market. The monopoly and oligopoly are adverse to the interest of consumers and had a drastic effect on market health. Few of the tech giants have turned so big, that they are in a position to easily avoid competition in the market.

The evidence exists of Mark Zuckerberg stating that "moving faster and copying apps can prevent our competitors from getting footholds". Anti- Competitive practices in the tech sector are a global problem. The US Federal Agency, Federal Trade Commission is very much concerned due to Social Media Giants reducing competition through mergers and acquisitions. In India, the Competition Commission of India is levied with the duty to regulate trade practices, discourage Unfair Trade Practices and maintain market competition. Monopoly in the market has its disadvantages and it is most harmful to consumers, India as a welfare state is committed to the cause of public welfare, hence needs to regulate the online mergers as well.

Keywords: Monopoly, Unfair Trade Practices, Competition, Online –