The enactment of the competition bill will lead to the termination of the MRTP Act and the dismantling of the MRTP Commission. It will now be replaced by the Competition Commission of India (CO) which will be empowered to fight unfair competition, restrict emergence of monopolies and keep an eye on Mergers and Acquisitions (M&A’s).
According to this act more dominance will not be considered restrictive but abuse of such dominance will. Further no prior notification will be required from & A’s and only companies with a turnover in access of Rs. 3000 crore or with an asset size of Rs. 1000 will fall under its purview. As against MRTPC, the CCI won’t seek to curb dominance but only abuse of such dominance.
Secondly, it will have a say in M & A’s.
Thirdly, CCI will operate in a free market economy and hence will have a more complicated policing job.
Fourthly CCI will have nothing to do with unfair trade practices. As against 14 restricted practices of MRTPC. The CCI has only 4.
Again, CCI does not provide for registration of agreements as compulsory. CCI can probe foreign cartel and it has a more simplified concept of group.