Competition law enforcement in India: issues and challenges

Abstract

In the first three decades of independence, India followed a path of planned economic development, characterized by controls and licensing. The resultant market structures were ones where competition was muted. The Monopolies & Restrictive Trade Practices Act (MRTP Act) enacted in 1969 focused on control of monopolies and concentration of economic power. The economic reforms initiated in 1991, resulted in opening-up of the Indian economy through removal of controls. This transition necessitated the Indian markets to gear up to face competition both from within and outside. The MRTP Act, a product of the licensing and controls regime, became redundant in the post liberalization era. After the adoption of the New Economic Order, it became imperative to make a shift from curbing monopolies to promoting competition. Accordingly, the Competition Act, 2002 (Act) was enacted to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers, and to ensure freedom of trade carried on by other participants in markets in India. Though the Act was enacted in 2002, the Commission got its enforcement powers in 2009, and since then up to 31 March 2017, it has reviewed over 868 antitrust cases. It has issued orders in 654 cases. The merger review provisions kicked in from 2011. The Commission has since then cleared over 490 merger filings out of 506 filed till March 2017.