Competition Policy vis-a-vis Consumer Welfare

Abstract

In India, the Competition Act, 2002 controls and maintains up competition in the market through its provisions forbidding anti-competitive agreements and abuse of dominance. We likewise have the Consumer Protection Act, 1986 which tries to ensure the interests of the consumers against information asymmetry, unfair trade practices, deficiency of services and so on. Under the Competition Act, the Competition Commission of India is the adjudicatory body for issues competition with rivalry while under the Consumer Protection Act, the District Forum, the State Forum and the National Consumer Forum are enabled to manage issues influencing consumers. The focus of this paper is to comprehend and outline the approach and objectives of competition law and consumer law considering their shared objective of accomplishing ‘consumer welfare’. The significance of this activity lies in understanding the job that the Competition Commission of India has assumed all by itself. The Competition Commission of India has taken upon itself to adjudicate even when the impact on competition is circuitous, for example where direct injury to the consumer streams from the adverse effects of the reproved act itself. The issue with this lies in the way that the appropriate remedy would lie with consumer courts. In spite of the fact that the type of such practices would propose a customer law remedy, their distortive consequences for competition may bring about competition law investigation. This paper intends to resolve the wrinkles and give a sound legal and economic reason for the utilization of competition law and consumer law. Despite the fact that reflections and principles are appropriate, an endeavour has been made to attest them as a final essential as this encourages the cycle of for all intents and purposes applying the standards to a given case.