Understanding Of Anti-Competitive Agreements In India
- IJLLR Journal
- 3 days ago
- 1 min read
Jinsee Desai, Unitedworld School of Law, Karnavati University
ABSTRACT
Competition plays a vital role in enhancing a nation's economic strength on the global stage and in fostering a consumer-centric environment within domestic markets. While liberalization is an important step, it is not sufficient on its own—there must also be a comprehensive competition policy to ensure sustained market efficiency and fairness. Such a policy is particularly crucial for developing and transitioning economies, where structural reforms require a balanced regulatory framework.
A sound competition policy serves to regulate market dynamics by curbing monopolistic tendencies and promoting fair conduct among enterprises. Its objective is to ensure market efficiency by discouraging unfair trade practices and fostering a level playing field. Essentially, competition policy consists of legal frameworks and regulatory measures that influence both firm behavior and market structure.
It targets the elimination or reduction of restrictive business practices, which can obstruct fair competition. These practices are often motivated by the desire to raise prices and maximize revenues at the expense of consumer welfare and market health. By implementing such policies, governments can prevent the harmful effects of cartels, and avert the risk of replacing public monopolies with unregulated private monopolies.
Firms often engage in a range of anti-competitive conduct to suppress competition, including market division, price collusion, bid rigging, dumping, and predatory pricing.
Keywords: Anti-competitive agreements, bid rigging, cartels, per se rule, resale price maintenance, rule of reason.
