CARTELIZATION IN THE INDIAN ECONOMY: AN EMPIRICAL AND LEGAL PERSPECTIVE

AUTHOR – NOOREEN FATMA* & DR. TARU MISHRA**

* STUDENT OF AMITY UNIVERSITY LUCKNOW

** ASSISTANT PROFESSOR AT AMITY UNIVERSITY LUCKNOW

BEST CITATION – NOOREEN FATMA & DR. TARU MISHRA, CARTELIZATION IN THE INDIAN ECONOMY: AN EMPIRICAL AND LEGAL PERSPECTIVE, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (5) OF 2025, PG. 751-756, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

One of the main problems facing the Indian economy is cartelisation, which goes against the fundamental principles of the Competition Law of 2002, which was passed with the intention of guaranteeing both consumer welfare and competitive practices. With the emergence of privatization and globalization that arose in the nineties in India, a realization was triggered that the existing Monopolistic and Restrictive Trade Practices Act, 1969 (“MRTP Act”) was not equipped adequately enough to tackle the competition aspect of the Indian economy. Three essential factors establish existence of a cartel, namely agreement by way of concerted action suggesting conspiracy; fixing of prices; and the intent to gain a monopoly or restrict/eliminate competition. There is a very thin (and blurred line) of distinction between legitimate co-operation and illegitimate collusion. Collusive price manipulation by rivals is the most important component of cartelisation behaviour. Cartelisation is one of the horizontal agreements that shall be presumed to have appreciable adverse effect on competition under Section 3 of the Act.

Keyword:  Cartelisation,  Competition Act 2002, Consumer welfare, Anti-competitive practices, Horizontal agreements, Appreciable Adverse Effect on Competition (AAEC), Price-fixing, Collusion, Monopolistic behavior