Objective of Indian Competition Law

Objective of competition legislation is debatable in all jurisdiction. Different scholars explain the different objectives of competition law. Some argue that objective of competition law is to enhance efficiency. Some argue that main objective is to protect consumer interest while others argue that it is to save the competitors so that competition remains in market and monopolist could not abuse its market power.

The objectives of competition law change with the concept of competition. Theory of competition is developed by the industrial economists of Havard in 1940s. They evolved Structure Conduct and performance model that structure in form of number of buyers and sellers, conduct in forms of R&D, sale etc and performance in terms of profit, equity, static efficiency and dynamic efficiency (innovation) has effect over each other. 

Later in 1980 Chicago school of competition law argues that structure conduct performance is not the only factors in competition law. Efficiency is more important than the other factors. A monopoly may be more efficient hence more competitive than the other structures of market. A firm may grow due to its managerial skills, quality raw material and better human resource. 

The reality lies somewhere in between both the schools of competition ideology. Objective of a legislation is very important. Because objective is going to give a direction to the legislation. Without clear objective law is like a kite without string. 

So the question arises what is objective of Indian Competition Law. The objective of Indian Competition Act 2002 states five objectives in the current economic conditions of the country:

1. to establish CCI to curb anti-competitive activities

2. promote and sustain competition in market 

3. protect consumer interest 

4. to ensure freedom of trade carried on by other participants in the markets in India.

5. Connected and incidental matters

It is important to notice that efficiency is not the express objective of Competition Act in India as opposed to Chinese competition law and other competition laws. It is very important to examine whether it is intentional or unintentional omission.

The third objective is the most complex one of all the objectives. Because there can be various dimensions to consumer protection  such as immediate consumer protection, long term consumer protection. Consumer has a wider definition in Competition Act 2002 than the earlier Monopolistic and Restrictive Trade Practices Act 1969. Purchase for sale or commercial purpose is also a consumer. 

So there is no clear cut division between Consumer and Producer class. It is about the role one is playing in the particular situation.    

There is need of intense research on real objective of Indian Competition law and suggested approach to achieve this objective.