Which Act in India primarily governs competition policy?
- A.The Companies Act, 2013
- B.Monopolies and Restrictive Trade Practices Act, 1969.
- C.The Competition Act, 2002
- D.The Consumer Protection Act, 2019
Show answer
Correct answer: C. The Competition Act, 2002
Explanation
The correct answer is C, The Competition Act, 2002. Competition policy in India rests on the Competition Act of 2002, which was passed on the advice of the Raghavan Committee after liberalisation, and it replaced the older monopolies law. The Act forbids agreements that harm competition, such as cartels that fix prices or share markets, forbids the abuse of a dominant position, and requires large mergers and acquisitions to be cleared in advance. It is enforced by the Competition Commission of India, which was set up in 2003 and began hearing cases in 2009, with appeals going to the National Company Law Appellate Tribunal. Option A is wrong because the Companies Act of 2013 governs the formation and running of companies. Option B is wrong because the MRTP Act of 1969 was repealed when this Act came into force. Option D is wrong because the Consumer Protection Act of 2019 protects buyers against unfair trade practices. Exam tip: MRTP 1969 replaced by Competition Act 2002, regulator CCI.