Importance Of Competition In The Market

COMPETITION ACT, 2002

Competition is the best means of ensuring that the common man has access to the broadest range of goods and services at competitive price. With increased competition producer will have to change its policies in order to make their product best in the competitive world, in terms of  both price and quality. And among all these activities, consumer will benefit the most.

The Competition Act, 2002 was enacted by the parliament of India in order to prevent the activities that have an adverse effect on competition in India. TheCompetitionAct, 2002 governs Indian competition law. It replaced The Monopolies and Restrictive Trade Practices Act, 1969. This law extend to whole over India except Jammu & Kashmir. It is a tool to implement and enforce competition policy and to prevent and punish anti – competitive business practices by firm and unnecessary Government interference in the market. The Competition Act, 2002 was amended by competition (Amendment) Act, 2007 and follows the philosophy of modern competition laws.

This is an Act to establish competition commission of India to protect the interest of the consumers and ensure freedom of trade in market in India.

The objectives of The Competition Act,2002 are given below :

  • To ban the abusive situation of the market monopoly.
  • To provide opportunities to the new entrepreneur for doing competition in the market in order to expand their business.
  • To prevent anti-competitionpractices and to promote a fair and healthy competition in the market.
  • To prohibit the agreement or practices that restrict free trading and also the competition between two business entities.
  • To have international support and enforcement network across the world.

COMPETITION COMMISSION OF INDIA

The objectives of Competition Act, 2002 are sought to be achieved through Competition Commission of India (CCI), which came into force from14thOctober, 2014. CCI consist of a chairperson and six members, appointed by the central government.

It is the duty of the commission to eliminate the practices that have adverse effect on the competition, promote and sustain the competition, protect the interest of the consumers and ensure freedom of trade in the markets of India.

The Competition is also required to give opinion on competitions issues on a reference received from a statutory authority established under any law and to undertake competition advocacy, create public awareness and impart training on competition issues.

OBJECTIVE OF COMPETITION COMMISSION OF INDIA

  • Proactive engagement with all stakeholders including consumers, industry, government and international jurisdiction.
  • Being a knowledge intensive organisation with high competence level.
  • Professionalism, transparency, resolve and wisdom in enforcement.

 

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