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MRTP__09-11-2012

The MRTP Act, enacted in 1969, aimed to curb monopolistic practices and promote competition in India, with significant amendments made until 1991. Post-1991, the focus shifted towards promoting competition, leading to the introduction of the Competition Act in 2002, which replaced the MRTP Act. The MRTP Act prohibited monopolistic and restrictive trade practices, while the Competition Act emphasizes preventing anti-competitive practices and protecting consumer interests.

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10 views

MRTP__09-11-2012

The MRTP Act, enacted in 1969, aimed to curb monopolistic practices and promote competition in India, with significant amendments made until 1991. Post-1991, the focus shifted towards promoting competition, leading to the introduction of the Competition Act in 2002, which replaced the MRTP Act. The MRTP Act prohibited monopolistic and restrictive trade practices, while the Competition Act emphasizes preventing anti-competitive practices and protecting consumer interests.

Uploaded by

Hq Ahsa Sha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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MRTP ACT

1969
MRTP ACT

 The Monopolies and Restrictive Trade


Practices was adopted by the government in
1969 and the MRTP Commission was set up in
1970.

 The act came into force from 1st June 1970


and has been amended in
1974,1980,1982,1984 and 1991

 The Act extended to the whole of India


excepting Jammu and Kashmir.
MRTP ACT 1969 :

 In the pre-1991 period the declared policy


of the government was to
 curb and restrict the growth of monopoly power
in the country.
 for this purpose, the government imposed
restrictions on the entry of large business
houses in a number of industries,
 set up a large number of industries in the public
sector,
 and undertook various measures to encourage
small and medium industries.
 The most important in this phase was
passing of the MRTP Act (Monopolies
and Restrictive Trade Practices Act) in
1969 and the setting up of the MRTP
Commission in 1970.

 Since 1991, the focus has shifted from


controlling monopolies to promoting
competition.
OBJECTIVES OF THE ACT

Prohibition of
monopolistic
Control of
and restrictive
monopolies,
and unfair trade
practices.
MONOPOLISTIC TRADE PRACTICE :
 Monopolistic Trade Practice Sections 31 and 32
of the MRTP Act relate to monopolistic trade
practices. ‘monopolistic trade practice’ means a
trade practice which has, or is likely to have, the
effect of-

1. Maintaining the price of goods or charges for the


services at an unreasonable level by limiting ,
reducing or otherwise controlling, production,
supply or distribution of goods (or services)

2. Unreasonably preventing or lessening


competition in the production, supply or
distribution of any of goods produced, supplied or
MONOPOLISTIC TRADE PRACTICE :
3. Increasing unreasonably-
(a) the cost of production of any goods; or
(b) charges for the provision, or maintenance, of any
services;

4. Increasing unreasonably-
(c) the prices at which goods are or may be, sold or
resold
(d) the profits which are, or maybe derived by the
production, supply or distribution of any goods

5. Preventing or lessening competition in the


production, supply, or distribution of any goods(or
services)by the adoption of unfair methods or unfair
RESTRICTIVE TRADE PRACTICE :
 Restrictive Trade Practice According to the MRTP Act, A
trade practice which has, or may have the effect of
preventing, distorting or restricting competition in any
manner

 Which tends to obstruct the flow of capital or resources


into the stream of production, or

 Which tends to bring about manipulation of prices or


conditions of delivery or to affect the flow of supplies in
the market relating to goods or services in such manner
as to impose on the consumers unjustified costs or
restrictions.

 A trade practice which has or may have the effect of


preventing, distorting or restricting competition in any
UNFAIR TRADE PRACTICE :
 A trade practice which, for the purpose of promoting any
sale, use or supply of any goods or services, adopts unfair
method

 These are categorized as:

 False Representation
 False Offer or Bargain Price
 Free gifts offer and Prize Schemes
 Non-compliance of Prescribed Standards
 Hoarding, Destruction etc
AFTER 1991 CHANGES
 The Industrial policy statement of 1991 bring
drastic changes in MRTP Act. These provisions
were criticized very much because of their
negative impact on growth and competition.

 This act is not applicable to :


This act is not applicable to
(i) Any undertaking owned or controlled by a
government (central or state)
(ii) Any undertaking the management of which
has been taken over by the government.
(iii) Any undertaking owned by a cooperative
society
ENFORCEMENT MACHINERY :

(i) The Monopolies and Restrictive Trade


Practice Commission.

(ii) The Central Government and Supreme


court.
INVESTIGATION AND ENQUIRIES

ACTION CAN BE INITIATED BY:

 AN INDIVIDUAL CONSUMER

 A REGISTERED ASSOCIATION OF
CONSUMERS

 A TRADE ASSOCIATION

 GOVERNMENT( Central and State


Government)

 MRTP COMMISSION SUO MOTU


COMPETITION ACT, 2002 :

 Competition Act, 2002 With the economic


reforms program in 1991, MRTP Act lost its
relevance in the new liberalized and global
competitive scenario. There was a shift of
focus from curbing monopolies to promoting
competition.

 Competition bill, 2001 was introduced in


Parliament and passed in December 2002.
This Act is called Competition Act, 2002.
COMPETITION LAW :

It is a tool to implement and enforce


competition policy and to prevent and
punish anti-competitive business
practices by firms and unnecessary
Government interference in the market.
OBJECTIVES

 To prevent practices having adverse effect on


competition ,

 To promote and sustain competition in


markets ,

 To protect the interests of consumers .


OVERALL SCHEME :
 Overall Scheme Competition Act, 2002, is
designed for the following purposes:

 Prohibitionof anti-competitive
agreements;
 Horizontal Agreement
 Vertical Agreement

 Prohibition of abuse of dominant


position
MRTP ACT, 1969 COMPETITION ACT,
2002

Based on the pre-reforms Based on the post-reforms


scenario scenario
Complex in arrangement Simple in arrangement and
and language language and easily
comprehensible
Frowns upon dominance Frowns upon abuse of
dominance
Registration of agreements No requirement of
compulsory registration of agreements
No penalties for offences Penalties for offences

Reactive and rigid Proactive and flexible

Unfair trade practices Unfair trade practices

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