Antitrust regulation act is a law established to closely monitor the distribution of economic power in a company. And also ensures that there remains a healthy competition in the market.
If a business in the market expands to a level where other small businesses are in danger and suffer losses due to it, then in this condition the act comes into action. It is to vanish any monopoly establish in the market.
For instance, if we take example of Microsoft in the 90’s, Microsoft in 90’s grew and expanded enormously that it was left with no competitor of its level in the market to compete with. But then Microsoft took a really smart step. In order to abstain from ATRA it helps its own competitor Apple so that they can reach a level where there is good competition between the two and the healthy competition in the market is still established.
Antitrust law is applicable on all types of businesses on all the levels may it be transportation, manufacturing or marketing etc. It is also very important to have a competition established in the market to overcome with the ill practices like price fixing, mergers or any monopoly which adversely affects the market. The antitrust law does not let these illegal practices happen and it it happens it also has provisions for fine and punishments.
The competition act enacted is the antitrust law in India. Which ensures a fair and balanced market. The CCI acts as the competition regulator in India. The Commission was established in 2003, although it became fully functional only by 2009. It aims at establishing a competitive environment in the Indian economy through proactive engagement with all the stakeholders, the government, and international jurisdiction. The objectives of the Commission are:
To prevent practices that harm the competition.
To promote and sustain competition in markets.
To protect the interests of consumers.
To ensure freedom of trade.
There is a need of this competition law because there are people resorting to the market distortion, use of anti-competitive practices and abusing their dominant position in the market. So, the law enacted prevents people from such practices. Competition laws are required to ensure that the domestic industries do not get suppressed with an increase in globalization. They play a quintessential role in determining the viability of the domestic industries. However, to keep the Indian competition laws updated with the businesses of the digital world which include not many assets, the Indian government has established a Competition Law Review Committee.
SHARDA UNIVERSITY 4th year