During the globalization process which started in India during the 1990s the enterprises in India faced tough competition not only from domestic players but also from global players. There was no level playing field and it began affecting the Indian trade economy adversely. The Monopolistic and Restrictive Trade Practices Act, 1969 (“MRTP Act”) which was in place was not effective to curb these monopolies and unfair competition. Thus Competition Act, 2002 was enacted to promote competition and prevent abuse of power in the Indian marketplace. The main objectives of the 2002 Act are to regulate anti-competitive practices, to curb abuse of dominance by the players in the market and to check the operation of “combinations” such as acquisition, mergers or amalgamations.
The Competition Commission of India was established as a quasi-judicial body under the Act to curb abuse of dominance, to promote and sustain fair competition in the market. CCI not only protects consumer welfare but also ensures freedom of trade carried on by other players in the market. If the orders of Competition Commission of India are not followed or if the facts are falsely misrepresented by the parties then CCI has the authority to impose penalties up to Rs.1 crores.