The Intersection Of MSMEs And Competition Law In India: A Critical Examination
- IJLLR Journal
- 13 minutes ago
- 1 min read
Mahabir Singh, PhD Scholar - Law, Galgotias University, Greater Noida.
Dr. Aditya Tomer, Dean, School of Law, Galgotias University, Greater Noida.
ABSTRACT
“Micro, Small, and Medium Enterprises” (MSMEs) play a crucial role in India's economy, contributing significantly to GDP, employment, and industrial growth. However, their competitive position is often challenged by larger corporations, regulatory hurdles, and limited access to finance. This paper examines MSMEs in the context of competition law, analysing whether they are victims of unfair market practices or perpetrators of anti- competitive behaviour. It explores key cases where MSMEs have suffered from predatory pricing, abuse of dominant position, and restrictive trade practices. Conversely, the study also investigates instances where MSMEs have engaged in cartelization, bid-rigging, and price-fixing. The legal framework, particularly the Competition Act, of 2002, is assessed to determine its neutrality towards business size and its effectiveness in ensuring fair competition. Furthermore, the role of government policies in fostering SME growth while maintaining competitive market conditions is discussed. The paper concludes that while MSMEs are often vulnerable to anti-competitive practices by larger firms, they are not entirely free from engaging in such practices themselves. A balanced regulatory approach is required to protect MSMEs from exploitation while ensuring they adhere to fair market competition principles.
Keywords: MSMEs, Competition Law, Anti-Competitive Practices, Cartelization, Market Regulation
