Difference Between monopoly restrictive trade practice act and Competition act 


Difference Between monopoly restrictive trade practice act and Competition act


The points of difference among MRTP Act and Competition Act are as such;

1) The MRTP Act, 1969 was based on a command and control system before to the reforms, but the Competition Act, 2002 was based on a liberalized regime after the reforms.

2) The MRTP Act, 1969 was based on size/structure, while the Competition Act, 2002 was based on behavior.

3) While the MRTP Act, 1969 contains implicit and undefined competition offences, the Competition Act, 1969 contains explicit and defined competition offences.

4) While the MRTP Act, 1969 is complex in structure and vocabulary, Competition Act, 2002 is straightforward in structure and language.

5) The MRTP Act, 1967 frowns upon dominance but Competition Act, 2002 acts upon abuse of dominance.

6) Registration of commercial agreements, such as marketing, is mandatory under the MRTP Act, 1969 although there is no such obligation under the Competition Act, 2002.

7) However, under the Competition Act, 2002 there is a provision for combination laws that go above the high threshold limit.

8) In MRTP Act, 1969 there are no penalties for offences but in Competition Act, 2002 Penalties for offences.

9) Whereas the MRTP Act, 1967 was reactive and inflexible, competition legislation is proactive and adaptable.

10) Unfair trade practices were covered by MRTP Act, 1969 in Competition Act unfair trade practices removed (Consumer Protection Act, 1986 currently 2019 will deal with them).

11) MRTP Act, 1969 is based on the rule of law, whereas Competition Act, 2002 is based on the rule of reason. There was a blanket exclusion of intellectual property rights in the MRTP Act, 1969 and in the competition act, although excessive limits were covered.

12) Under the MRTP, Act, 1969 there is no role for Competition advocacy. Competition Act, 2002 has competition advocacy Role. MRTP Act with a Concentration on Monopolies and Competition Act, 2002 with a Purpose of Promoting Fair Competition.

13) Under the MRTP Act, 1969 agreements pertaining to restrictive trade practices must be registered. The Competition Act, 2002 does not require the agreement to be registered. Under MRTP Act, 1969 dominance is a negative thing. The Competition Act, 2002 does not criminalize dominance in and of itself; rather, it criminalizes misuse of power.

14) The MRTP Act, 1969 contains no provisions for combination. The Competition Act, 2002 contains provisions relating to mergers and acquisitions. The MRTP Act, 1969 has no penalties for violations. The Competition Act, 2002 imposes penalties for violations.

15) The MRTP Act, 1969 had a provision for unfair trade practices (Section 36A), but it was not included in the Competition Act, 2002; nonetheless, it is now covered under the Consumer Protection Act, 2019.


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