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PRACTICES
AND
COMPETITION POLICY
Background
2
Benefits of Competition….
Companies : Efficiency, cost-saving
operations, better utilization of
resources, etc.
BUT…………………………
3
….Benefits of Competition
4
Evolution of Competition Law
Before MRTP Act came into force (1970),
limited provisions existed under :
The Indian Contract Act
The Law of Torts
Directive Principles of State Policy (Non-
enforceable)
The MRTP Act brought in a four-pronged
thrust :
Concentration of economic power ( - Repealed
in 1991 - )
Restrictive Trade Practices
Monopolistic Trade Practices ( - Almost a dead
letter - )
Unfair Trade Practices ( - Added in 1984 - )
5
Unfair Trade Practices
Many competition regimes do NOT consider
this as part of Competition Law
BUT, it does affect competition – directly or
indirectly
Consumer protection provisions made for the
first time in India by 1984 Amendments in the
MRTP Act
The Consumer Protection Act came only 2
years later
How Consumer Courts were hurriedly
constituted
After 1986, MRTP Commission and Consumer
Courts had parallel jurisdiction
Consumer Courts v MRTP Commission : Pros
& Cons
6
Unfair Trade Practices
HOW UTPs affect competition :
Warranties not based on lab tests
After sales guarantees not honoured
Contests & Competitions
View of the MRTP Commission
View of the Supreme Court
Disparagement of competing products
Godrej v Kelvinator
Colgate v Pepsodent
Rulings in RIDAKE (India) & XENICAL (USA)
Misleading sales ads
“ 60% OFF”
UPTO
Guptaji’s Sales
Ads of CURRYS (U.K.’s biggest electrical chain)
7
UTPs vis-à-vis Competition Act
8
Powers of Competition Commission as
Regards Agreements
9
Abuse of Dominance