Impact And Mitigation Strategies For Cartels And Abuse Of Power In India Emerging From Cartelization And Collusive Practices
Harshika Mehta, LL.M., Gujarat National Law University, Gandhinagar
ABSTRACT
In India, cartels and oppressive practices by powerful entities pose serious threats to market dynamics, consumer welfare, and competition. This research investigates the effects of cartelization and collusive practices on the Indian economy and proposes mitigation strategies to address these issues. The purpose of this research paper is to provide insights for enhanced regulation and deterrence by analyzing the efficacy of current antitrust laws and enforcement mechanisms. The research begins by examining the prevalence of cartelization in key sectors of the Indian economy, analyzing the extent of collusive practices including price-fixing, bid-rigging, market allocation, and collusion to restrict competition. It emphasizes the detrimental effects these practices have on market efficiency, innovation, and consumer welfare. In addition, the paper investigates instances of powerful entities abusing their dominant market positions and assesses their influence on smaller competitors and consumers. It analyzes the effects of predatory pricing, market access denial, unfair trade practices, and exploitative conduct on market competition and economic development. The research evaluates the extant legal and regulatory framework in India, focusing primarily on the Competition Act and the Competition Commission of India's (CCI) enforcement of it. It assesses the effectiveness of these measures in detecting, investigating, and prosecuting cartels and power abuse, identifying potential voids and improvement areas. It examines the legal and enforcement obstacles encountered in prosecuting and punishing cartelization and abusive practices, underscoring the key factors that inhibit effective deterrence. The paper proposes effective remedies and deterrence mechanisms to combat cartelization and abusive practices, emphasizing the importance of imposing substantial penalties, implementing leniency programs, encouraging whistle-blowing, and enhancing regulatory and law enforcement cooperation. This research seeks to contribute to the development of a more robust and effective legal framework by addressing the impact and mitigation strategies for cartels and abuse of power in India. It emphasizes the importance of promoting competition, preserving market dynamics, and protecting consumer interests in order to nurture a just and prosperous business environment in India.
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