Skip to main content

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

Image
By
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 On the place of MRTP ACT 1969 after this MRTP act 1969 was fully repealed.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.

Labels:

Comments

Post a Comment

Popular posts from this blog

Case Study: A perfect competition

By
In 1997, over $700 billion purchases were charged on credit cards, and this total is increasing at a rate of over 10 per cent a year. At first glance, the credit card market would seem to be a rather concentrated industry. Visa, MasterCard and American Express are the most familiar names, and over 60 per cent of all charges are made using one of these three cards. But on closer examination, the industry seems to exhibit most characteristics of perfect competition. Consider first the size and distribution of buyers and sellers. Although Visa, Mastercard and American Express are the choices of the majority of consumers, these cards do not originate from just three firms. In fact, there are over six thousand enterprises (primarily banks and credit unions) in the US that offer charge cards to over 90 million credit card holders. One person's Visa card may have been issued by his company's credit union in Los Angeles, while a next door neighbour may have acquired hers from a Miami B
Post a Comment
Read more

Discuss the relationship between economics and management functions. How does the former contribute to the latter?

By
Economics and Management are ideal intellectual partners, each particularly fitted to strengthen and cross-fertilize the other. Economics provides the broader understanding of economic activity within which all organizations function; management in turn analyses the character and goals of that functioning. The management economics is often a subsection of the economic science and thus in broader sense a special form of the social, culture and Geisteswissenschaften. Like the economic science it is based in principle on the fact that most goods are limited and must by the participants be managed. It describes the economic functions of the enterprise within a national economy. In addition above all the optimal organization of the factors of production belongs apart from the company targets and the economical functions. In the broader sense also all households are enterprises.
1 comment
Read more

Case Study: Human Resource Planning - What is that?

By
You are a human resource consultant. The newly appointed president of a large paper manufacturing firm has called you: President : I have been in this job for about one month now, and all I seem to do is interview people and listen to personal problems. You : Why have you been interviewing people? Don't you have a human resource department? President : Yes, we do. However, the human resource department does not hire top management people. As soon as I took over, I found out that two of my vice presidents were retiring and we had no one to replace them. You : Have you hired anyone? President : Yes, I have, and that is part of the problem. I hired a person from the outside. As soon as the announcement was made, one of my department heads came in and resigned. She said she had wanted that job as vice president for eight years. She was angry because we had hired someone from outside. How was I supposed to know she wanted the job? You : What have you done about the other vice pre
4 comments
Read more