Almost six years after the enactment of the Competition Act 2002
("Competition Act"), India's competition regulator -
the Competition Commission of India (CCI) has finally become
operational. The Competition Act aims at facilitating competition
in the Indian market, through prohibition of anti-competitive
agreements, cartels and abuse of domination positions.
Legal wrangle over the structure of the CCI had caused much
delay in the activation of the Indian competition law regime and
kept the CCI in abeyance. While the substantive provisions of the
Competition Act relating to (i) prohibition of anti-competitive
agreements and (ii) abuse of dominance were finally notified in
May, the provisions with respect to regulations of combinations
(mergers, amalgamations and acquisitions) are expected to be
With the CCI becoming functional, India is now in line with the
US, Europe and most recently China in relation to a competition law
regime. The Act when entirely implemented is expected to shake up
the way companies do business in India. As an independent body
responsible for investigating mergers, market shares and
conditions, besides regulating firms, CCI would ultimately replace
the Monopolies and Restrictive Trade Practices Commission (MRTPC).
Though MRTPC will continue to deal with pending cases for two years
before being dissolved, it would no longer admit any new cases.
Companies face fines of up to three times their annual profits
if they fall foul of new competition laws. The regime has been
modelled on the European system and it proposes to make
contravention of CCI orders a criminal offence.
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In the wake of liberalization and privatization that was triggered in India in early nineties, a realization gathered momentum that the existing Monopolistic and Restrictive Trade Practices Act, 1969 was not equipped adequately enough to tackle the competition aspect of the Indian economy.
The Legal Metrology Act, 2009 was passed by the Indian Parliament in order to repeal and replace The Standards of Weights and Measures Act, 1976 and the Standards of Weights and Measures (Enforcement) Act, 1985.
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