Comparative Analysis of Price Fixing in India and USA - An Overview

Abstract

Abstract: The Preamble to the Indian Constitution states that- “WE, THE PEOPLE OF INDIA, having solemnly resolved to constitute India into a SOVEREIGN SOCIALIST SECULAR DEMOCRATIC REPUBLIC and to secure to all its citizens: Justice, social, economic and political. LIBERTY of thought, expression, belief, faith and worship. EQUALITY of status and of opportunity and to promote among them all FRATERNITY assuring the dignity of the individual and the unity and integrity of the Nation. In Our Constituent Assembly this twenty-sixth day of November 1949, do HEREBY ADOPT, ENACT AND GIVE TO OURSELVES THIS CONSTITUTION.” It is a reflection of the core constitutional values and declares India to be a Sovereign, Socialist, Secular, Democratic, Republic committed to Justice, Equality and Liberty for the people. The objective of the Competition Act, 2002, also reflects the same core values as our Indian Constitution. It clearly states the following objectives:  to prevent practices having adverse effect on competition.  to promote and sustain competition in markets.  to protect the interests of consumers.  to ensure freedom of trade carried on by other participants in markets, in India, and for matters connected therewith or incidental thereto. It is here to be noted that prior to the Competition Act, 2002, the Monopolies and Restrictive TradePractices (MRTP) Act, 1969, was the first piece of legislation to deal with antitrust law in India and to restraint the abuse of market power. However, at the wake of globalization, liberalization and privatization the MRTP Act, 1969 was considered as obsolete and was replaced by the Competition Act, 2002, on the recommendation of the Raghavan Committee. The Competition Act, 2002, as amended by the Competition (Amendment) Act, 2007, or the MRTP Act, 1969, were however not the first piece of legislation to deal with the antitrust law globally nor did it first originate in India. The antitrust law was for the very first time developed in the United States in the late nineteenth C.E. In this paper we will be making a detailed comparison between USA and India with respect to Price Fixing, the related legislations and the agencies dealing with such issues in their respective jurisdiction