What are the features of MRTP Act?

What are the features of MRTP Act?

Aim of Monopolistic and Restrictive Trade Practices (MRTP) Act, 1969:

• Prevention of concentration of economic power to the common detriment.
• Control of monopolies.
• Prohibition of Monopolistic Trade Practices (MTP).
• Prohibition of Restrictive Trade Practices (RTP).
• Prohibition of Unfair Trade Practices (UTP).

What are the main provisions of MRTP Act 1969?

The MRTP Act, 1969 also provides for appointment of a Director General of Investigation and Registration for making investigations for the purpose of enquiries by the MRTP Commission and for maintenance of register of agreements relating to restrictive trade practices.

What is MRTP Act and Competition Act?

MRTP Act, is the first competition law made in India, which covers rules and regulations relating to unfair trade practices. Competition Act, is implemented to promote and keep up competition in the economy and ensure freedom of business.

Why was MRTP Act discontinued?

Hemant Singh. The Monopoly and Restrictive Trade Practice Act 1969 became obsolete in the present world of throat cutting competition. The MRTP Act prevent the expansion of the companies whose assets was 100 crore, because these companies need to take government permission to expand their business.

What are the shortcomings of MRTP Act?

However, due to scarcity of resources, lack of clearly defined procedures and cumbersome rules and regulations, the Act wasn’t as effective as it was supposed to be. Also, the changing economic and trade environment (brought by the New Economic Policy, 1991) made it necessary for a change in the MRTP Act.

What is Mrtp and Fera?

Monopolies and Restrictive Trade Practices Act (MRTP), 1969. Foreign Exchange Regulation Act (FERA), 1973.

What is full form of Mrtp?

POLICY, PROVISIONS AND PERFORMANCE. 4.1. The MRTP Act, 1969 has its genesis in the Directive Principles of State Policy embodied. in the Constitution of India.

How is Aaec calculated?

The Competition Commission of India (CCI) determines AAEC on the following factors:

1. Creation of barriers to new entrants in the market.
2. Driving existing competitors out of the market.
3. Foreclosure of competition by hindering entry into the market.
4. Accrual of benefits to the consumers.

What does Aaec stand for?

AAEC: Early College High Schools – Enriched Educational Experience | AAEC.

What is the rule of reason test?

The Rule of reason is a legal approach by competition authorities or the courts where an attempt is made to evaluate the pro-competitive features of a restrictive business practice against its anticompetitive effects in order to decide whether or not the practice should be prohibited.

What are anticompetitive agreements?

Anti- Competitive Agreements are those agreements that have their object in furtherance of or prevent, restrict or distort competition in India. Competition Act of 2002 defines the kind of anti-competitive agreements that cannot be made in India.

How many types of anticompetitive agreements are there?

Some anti-competitive agreements may be classified into “horizontal” and “vertical” agreements. Generally speaking, a cartel is an association of businesses in the same industry colluding with one another to susbtantially prevent, restrict, or lessen competition.

Is anti-competitive illegal?

Anti-competitive practices are commonly only deemed illegal when the practice results in a substantial dampening in competition, hence why for a firm to be punished for any form of anti-competitive behaviour they generally need to be a monopoly or a dominant firm in a duopoly or oligopoly who has significant influence …

Which is called a vertical agreement?

A vertical agreement is a term used in competition law to denote agreements between firms operating at different levels of the production/distribution chain (e.g. relations between manufacturers and their customers/distributors).

Are vertical agreements illegal?

Legal Definition of vertical agreement Note: Unlike horizontal agreements, vertical agreements are not considered illegal per se under antitrust laws, but they must withstand judicial scrutiny to be held valid.

What are horizontal and vertical agreements?

1. Horizontal Agreements Horizontal agreements are those between competitors, i.e., entities at the same level of distribution. Vertical agreements are those between parties on different levels of the chain of distribution, such as between a manufacturer and a distributor, or between a wholesaler and a retailer.

What is the difference between vertical and horizontal restraints?

A vertical restraint is an agreement undertaken at different levels of production, distribution, or supply. This is different from a horizontal restraint, which is an agreement between competitors at the same level of production, distribution, or supply.

Why are vertical monopolies illegal?

There have been cases where vertical integration has been used to fix prices for price maintenance. Resale price maintenance definitely causes legal obstacles as it is an explicit violation of antitrust laws. The legal penalties for price maintenance are severe.

Is horizontal price-fixing illegal?

Horizontal price-fixing There is nothing illegal about competitors actually setting the same prices or even about them doing so consciously. Rather, the law frowns on any agreement that interferes with competitors’ ability to set their own prices with complete freedom.

What is vertical conduct?

It covers conduct that falls short of being a ‘contract, arrangement or understanding’, but involves more than a business responding independently to market conditions. Similar to the prohibition on anti-competitive agreements, the prohibition on concerted practices applies to both vertical and horizontal arrangements.