MONOPOLISTIC TRADE PRACTICES.pptx

MTP

1. Monopolistic Trade Practices By SACHIN BHARDWAJ

2. SECTION 31 of MRTP THE MRTP Commission could, on its own information, or on the application of the Directorate – General of Investigation and Registration, or on a reference from the central government, make an inquiry into whether a monopolistic trade practice was being practices by any undertaking, or if such a practice was prevalent in respect of any goods or services.

3. If the commission found after inquiry that the monopolistic trade practice was likely to operate against the public interest, it could report that finding to the central government. The central government may pass such orders as it though fit to remedy or prevent any mischief which resulted, or could result from that monopolistic trade practice.

4. A monopolistic trade practice is one, which has or is likely to have the effect of: maintaining  the  prices  of goods or charges for the services  at an unreasonable level  by limiting, reducing or otherwise controlling the production, supply or distribution of goods or services; unreasonably preventing or lessening competition  in the production, supply or distribution of any goods or services whether or not by adopting unfair method or fair or deceptive practices; limiting technical development  or  capital investment  to the common detriment;

5. 4. deteriorating the quality  of any goods produced, supplied or distribute; and 5. increasing unreasonably  - the cost of production of any good; or charges for the provision, or maintenance, of any services; or the prices for sale or resale of goods; or the profits derived from the production, supply or distribution of any goods or services. 6. A monopolistic trade practice is deemed to be prejudicial to the public interest, unless it is expressly authorized under any law or the Central Government permits to carry on any such practice.

6. Inquiry into Monopolistic Trade Practices The Commission may inquire into Any monopolistic trade practice, Upon a reference made to it by the Central Government or Upon an application made to it by the Director General or Upon it own knowledge or information

7. Relief Available a. Where the inquiry by the Commission reveals that the trade practice inquired into operates or is likely to operate against public interest, the Central Government may pass such orders as it thinks fit to remedy or present any mischief resulting from such trade practice. b. On an inquiry report of the Commission, the Central Government may- Prohibit the owner(s) of the concerned undertaking(s) from continuing to indulge in a monopolistic trade practice; or Prohibit the owner of any class of undertakings or undertakings generally, from continuing to indulge in any monopolistic trade practice in relation to the goods or services.

8. c. The Central Government may also make an order: i . Regulating the production, storage, supply, distribution, or control of any goods or services by an undertaking and fixing the terms of their sale (including prices) or supply; ii. Prohibit any act or practice or commercial policy which prevents or lessens competition in the production, storage, supply or distribution of any goods or services;

9. iii. Fixing standards for the goods used or produced by an undertaking; iv. Declaring unlawful the making or carrying out of the specified agreement; v. Requiring any party to the specified agreement to determine the agreement within the specified time, either wholly or to specified extent; vi. Regulating the profits which may be derived from the production, storage, supply, distribution or control of any goods or services; or vii. Regulating the quality of any goods or services so that their standard does not deteriorate.

10. Exceptions (a) the trade practice was expressly authorised by any enactment for the time being in force; and (b) the central government, or being satisfied that the trade practice is necessary, permit, by a written order, the owner of any undertaking to carry on the trade practice.

11. Before issuing this permission, the central government was to be satisfied that the trade practice was necessary (a) to meet the requirements of the defence of India or any part of India or for the security of the state (b) to ensure the maintenance of supply of goods and services essential to the community (c) to give effect to the terms of any agreement to which the central government was a party.