Competition is to be said when a seller tries to attain the funds of buyer so that the profit can be achieved by him. The competition act, 2002 was enacted by Indian parliament. This act was enacted twice - The competition act, 2007 and the competition act, 2009 considering in making some advances in its feature. The major features of competition act, 2002 is that it provides a framework for the establishment of competition commission and the other is that it provides the tools to prevent anti-competitive practices thus promote positive competition in market.
Objectives of competition act-
The main motive of competition act was to promote the fair competition in Indian market so that the interest of customers can be protected and to provide freedom of trade to the participants in the market. The main objectives of Competition act, 2002 are stated below:
· Promoting the competition in the market.
· To prevent the monopolies.
· Provides the framework for establishing of competition commission.
· To provide a fair interest to the consumers in market.
· To provide the freedom for trade to the entities in market.
Outlook of Competition Act, 2002 in business-
In India there is a necessity for knowing the various laws and regulations and their implementation related to business operations. The market competition is a huge challenge which needs to be deal with care. There is essentiality for businessmen to know that the competition in market brings prosperity, thriving and needs to realize that striving should be continuous for running their business successfully.
The competition Act here plays a vital role in business as providing:-
· The awareness related to the fact that when discussions are made with the competitors documentation should be done.
· It tells that the markets are susceptible to the formation of monopolies. It provides the awareness that such associations are not permitted in market under Competition act, 2002.
· It clarifies that if any matter is discussed in a meeting, the issues should not be raised under completion law related to that matter.
· It advices to avoid discussions concerning to price and actual cost to company.
· Appointment of men for giving advices related to competition law can be made by the companies to prevent and avoid any illegal activity.
Competition act, 2002 is the design of legislation to promote the fair completion in market. It helps in raising the economy of country. Provides the fair interest to consumers in market with promote a freedom of trade to the participants in market too. Thus, it safeguards both the parties’ interest and ensures a stable run in Indian market.