Legal Framework Governing Cartels And Bid Rigging Under The Competition Act, 2002
- IJLLR Journal
- 4 days ago
- 1 min read
Shailesh, Amity Institute of Advanced Legal Studies, Amity University, Noida
ABSTRACT
This research paper explores the statutory framework governing anti- competitive agreements in India, primarily focusing on the transition from the "dominance-based" MRTP regime to the "conduct-based" Competition Act, 2002. Central to this study is Section 3, which prohibits any agreement—formal or informal—that causes or is likely to cause an Appreciable Adverse Effect on Competition (AAEC) within the relevant market. While Section 3(1) provides an omnibus prohibition, the paper delves into the rigorous standards of Section 3(3), which addresses horizontal agreements such as cartels and bid rigging. Unlike vertical arrangements, these horizontal collusions carry a rebuttable presumption of AAEC, shifting the burden of proof to the defendants due to their inherent potential to distort market discovery and consumer welfare. By examining the shift toward the "rule of reason" and the inclusion of "tacit collusion" within the legal ambit, this study evaluates how the Indian legislature and the Competition Commission of India (CCI) navigate the complexities of identifying and penalizing sophisticated, non-contractual market manipulation.
