Competition law and the war of exchanges

Globalization, and relaxation in India’s foreign investment policy, have resulted in strong competition for the local market, which in turn has mandated higher standards of practice among market participants. With this desirable outcome in view, the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969, was repealed and replaced by the Competition Act, 2002. Although certain provisions of the Competition Act are yet to be notified, the Competition Commission of India (CCI) has already come into operation and replaced the MRTP Commission.

The CCI has been granted the power to independently inquire into anti-competitive agreements or abuses of dominant position, i.e. an enterprise’s position of strength in a market which enables it to operate independently of competitive forces, or to affect its competitors, consumers or the market in its favour.

Dominant position itself is not defined under US or UK laws. In the US, any attempt to monopolize a market is illegal and the basic criterion for determining if this has occurred is whether a company actually has dominant power or control.

Anahita Irani is a senior associate and Prachi Loona is an associate at Juris Corp. The firm is based in Mumbai and specializes in banking and finance, foreign investments, private equity, direct tax, bankruptcy and restructuring, M&A, insurance, energy and infrastructure, dispute resolution and International arbitration.