The various objectives of the Act are:
• To prevent practices having adverse effect on competition,
• To promote and sustain competition in markets,
• To protect the interests of consumers,
• To ensure freedom of trade carried on by other participants in markets
The aforesaid objectives are not exhaustive and it is quite evident from the ending words of the Preamble of the Act i.e. “for matters connected therewith or incidental thereto” which gives wide discretionary powers to the CCI in this regard.
The Supreme Court of India in the case of Competition Commission of India v. Steel Authority of India & Anr. (Civil Appeal No.7779 of 2010), observed that the main objective of competition law is to promote economic efficiency using competition as one of the means of assisting the creation of market responsive to consumer preferences. The advantages of perfect competition are three-fold: allocative efficiency, which ensures the effective allocation of resources, productive efficiency, which ensures that costs of production are kept at a minimum and dynamic efficiency, which promotes innovative practices.
Scope of the Act - The Competition Act, 2002 covers three areas:
Abuse of Dominant Positions by Enterprises, e.g. Predatory pricing, barriers to entry;
The Regulation of Mergers & Acquisitions;
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