Combating cartelization in India a critical study with reference to the Indian competition act 2002

Abstract

Cartels are condemned worldwide for their pernicious effect. Cartels are agreements between firms /industries operating in the same trade not to compete on price, product or customers, thus affecting the competition in the market and reducing the consumer welfare. The study examines the effectiveness of the Indian Competition Act, 2002 in combating cartelization by specifically taking up three sectors, viz, the manufacturing sector (cement), the financial service sector(insurance) and the carriage sector (air cargo) in India. The jurisdictions that are undertaken as part of the comparative study includes EU, U.K, U.S and Australia. The empirical method employed is a detailed analysis of the orders of CCI from its inception till date (2010-2017). This study suggested for the introduction of criminal sanctions and the changes to be made within the enforcement machinery. The research culminates by putting forth an advanced leniency mechanism and whistle blowing programme for Indian antitrust authorities to detect cartelisation at the very inception. newline