The market or the market structure in India or abroad are full of Competition. This Competition should be checked and backed by law, in order to ensure free and fair trade practice. And therefore it is regulated by Competing Authorities in almost every country. In a market having several sellers it is explicit that there will be rise in price, lower quality of products, new companies will covet to start new business, which can lead to monopoly and can harm small companies and business.
Mergers and Acquisitions among the existing companies in the relevant industry can also indulge under anti competitive practices if not kept under check. In India, the regulation began in the late 1969 with the MRTP Act (Monopolies and Restrictive Trade Practices), which basically focused on the operation of economic power.
The Competition Act 2002 altered this presumption and provided that monopolies are not per se bad unless there are fair trade practices been involved and are helpful in the development of the country.
The enforcement of the Act is entrusted with the CCI (Competition Commission of India) which mainly accomplishes these lines of work:-
- Regulation of Mergers and Acquisitions.
- Investigation of Explicit or tacit agreements
- Elimination and restrictions on the dominate position of sellers
- Competition Advocacy.