Divyanshi Khemka, UPES Dehradun
Smriti Singh, UPES Dehradun
Bhavya Singh, UPES Dehradun
INTRODUCTION
Competition is as ancient as civilization itself. Competition in a marketplace—the practice of battle between commercial firms for customers—is a basic aspect of a flexible and dynamic market economy. To meet the demand for better products at cheaper rates, competitive manufacturers, suppliers, or service providers are driven to innovate, reduce slack, and boost productivity. Even though economic agents are motivated by self-interest, the advantages flow to society.
Competition benefits everyone, including consumers, companies, and the economy. It benefits customers since they may select from a large range of high-quality items at reasonable pricing. Lower prices assist businesses as consumers of raw materials or intermediary goods, increasing their competitiveness. The economy benefits from effective resource allocation, which stimulates innovation and leads to dynamic efficiency. This, in turn, boosts productivity and leads to rapid economic expansion. Competitive markets maximize production while also contributing to the improvement of the people's standard of living by ensuring the effective use of resources. In contrast, when there is a lack of competition, whether via a price-fixing cartel or an abuse of market power by a dominant corporation, both the economy and the consumer suffer in the long term.
Articles 38 and 39 of the Indian Constitution led to the development of competition law in India. These articles are part of the Directive Principles of the State Policy. The competitive procedure is not automated. In a free-market economy, the unseen hands of market forces may effectively remove any distortions. However contemporary economies are hardly free market economies, and market distortions are often the consequence of a well-planned strategy of market participants who can exercise control. In such a circumstance, it is critical for the state to monitor markets to detect and remedy any blockages or distortions. The legislation that takes such events into account is competition (or anti-trust) law, and the organization that regulates market functioning is the Competition Commission.
Comments