Business Ethics and Corporate Governance, Second Edition

INDIAN COMPETITION ACT

Competition Act is important for businesses in the following three main areas:

• Commercial agreements and trading practices.
• Conduct towards competitors, suppliers and customers, especially in the case of firms with a strong market position.
• Mergers and acquisitions.

Since the adoption of the economic reforms programme in 1991, corporates have been pressing for the scrapping of the MRTP Act. The argument put forward in favour of scrapping it was that the MRTP Act had lost its relevance in the new liberalized era and global competitive markets. It was pointed out that only large companies can survive in the new competitive markets and therefore ‘size’ should not be made a constraint. Accordingly, the government appointed ...