Competition Commission of India and Consumers’ Welfare: An Analysis

Abstract

After globalization of economies around the world, markets became more and more competitive. International players also jumped into the field called local or national market of a country. Entry of so many players gives birth to unfair means and malafide practices which leads to unhealthy competition and only big players have chance to win the game. In the pursuit of globalization, India has also responded to opening up its economy, removing controls and resorting to liberalisation. The natural corollary of this is that the Indian market should be geared to face competition from within the country and outside. Hence, the Competition Act, 2002 has been enacted replacing the MRTP Act, 1969, with the purpose of providing a competition law regime that meets and suits the demands of the changed economic scenario in India and abroad. The purpose of formulating a competition law in India was to shift the focus from curbing monopolies to promoting competition. Competition in a market contributes to the progress of an economy because it ensures better products and services, offers wider choice, promotes efficiency and increases consumer welfare. Competition eliminates the poor performing products or services and leaves only good and outstanding products for the general masses to consume. Consumers need good quality products at lower prices. If there is competition in the market, the market players in order to survive will be compelled to bow down to the demands of the consumer, i.e. quality products at lower prices. Competition law, therefore, is designed for the regulation of competition, thereby ensuring economic growth.