Explain the salient features of Competition Act, 2002

The competition Act, 2002 which passed on 13^th January, 2003 is a laudable step towards harmonizing international trade policy.

It intends to provide:-

a)      For establishment of a commission to prevent practice having adverse effect on competition.

b)      To promote & sustain competition in market

c)      To protect the interest of consumers

d)      To ensure freedom of trade carried on by other participants in markets

Parameters of Competition Law:-

i)        Prohibition of certain agreements considered to be anti-competitive in nature.

ii)      Exploitation of dominant position by imposing unfair conditions and restricting production of goods and services.

iii)    Regulation of combinations which causes or likely to cause an adverse effect on competition within India; such combinations are considered to be void.