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Explain the meaning, relevance and features of the Competition Act, 2002.

In 1969 Govt. has passed an act and it had given the name monopoly and restrictive trade practices (MRTP). It became popular with the name of MRTP 1969. This act has many provisions to control the monopoly and to promote the competition. It has defined RTP and also explained the powers of MRTP commission. But its scope was very narrow and Govt. of India has made new act called competition act 2002. On the place of MRTP ACT 1969 after this MRTP act 1969 was fully repealed.

Explanation of Competition Act 2002
Competition Act 2002 states that Indian traders must not do any activity for promoting monopoly. If they will do any activity in the form of production, distribution, price fixation for increasing monopoly and this will be against this act and will be void. This act is very helpful for increasing good competition in Indian economy.

Under this act following are restricted practice and these practices are stopped by this act.
  1. Price fixing: If two or more supplier fixes the same price for supply the goods then it will be restricted practice.
  2. Bid ragging: If two or more supplier exchange sensitive information of bid, then it will also be restricted practice and against competition.
  3. Re-sale price fixation: If a producer sells the goods to the distributors on the condition that he will not sell any other price which is not fixed by producer.
  4. Exclusive dealing: This is also restricted practice. If a distributor purchases the goods on the condition that supplier will not supply the goods any other distributor.
Above all activities promote monopoly so under competition act these are void and action of competition commission will not entertain by civil court.

Establishment of Competition Commission Under this law
Govt. of India appoints the chairman and other member of competition commission. Competition act 2002 gives the rules and regulation regarding establishment and functions of this commission.

Qualification of chairperson of Competition commission
He or she should be Judge of high court + 15 years or more experience in the field of international trade , commerce , economics , law , finance , business and industry .

Function of Competition commission:
  1. To stop activity and practice which are promoting monopoly.
  2. To promote the competition.
  3. To protect the interest of consumers.
Conclusion
India is doing all work for safeguarding the interest of consumer and this law is one of the important pillar in this way.

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