WHAT CAN BE CONSIDER AS RESTRICTIVE TRADE?

The word ‘socialist’ was included in the Indian Constitution by the 42nd Reform. The main objective was to reduce the differences in revenue, status, and differences in life. As per the objective, the government was on a concentration of economic power in a few hands which could negatively affect the benefits of the weaker sections. 

The Constitution of India seeks to improve the health of organizations by its Articles 38 and 39. It efficiently ensures & preserves the social system with social, financial & administrative justice. The Monopolies and Restrictive Trade Practices Act revels in these legal prerequisites.

The Objective Of The Monopolies And Restrictive Trade Practices (MRTP) Act, 1969

Prevention of application of financial prosperity in certain deals which adversely affect the profit of others –

• To put control over monopolies
• Prohibition of limiting trade disciplines
• Prohibition of monopolistic trade applications
• Prohibition of illegal trade applications.

Development of Modern Competition Law

The circumstances that led to the passage of the Monopolies and Restrictive Trade Practices Act go through a massive development that led to the creation of the Specific Competition Act.

After the passage of the original Act, the Indian government’s strategies extended from command and authority to liberalization and globalization of trade.

The Monopolies and Restrictive Trade Practices Act were considered the competition law of India largely because it dealt with any trade practices that result in preventing or limiting engagement.

However, it was realized that the country’s Monopoly and Restrictive Trade Practices Act was more inadequate legislation on engagement than other countries’ competition law.

Management Of Combinations

The Competition Act, 2002 (amended) is primarily involved in promoting and protecting engagement in the Indian market by preventing any application from having a significant antitrust effect.

The act is primarily involved in preventing three types of contracts that constitute –  a) anti-competitive agreements, b) abuse of dominant position, and c) administration of combinations (mergers and acquisitions).