Srobona Sadhukhan & Jhumpa Pakira, LL.B., The University of Burdwan, Purba Burdwan, West Bengal
ABSTRACT
Competition is a situation where two or more companies, enterprises or business entities compete with each other to make profit with the help of various techniques. Basically, it is an event to prove superiority or to establish supremacy in a specific area. If a market is competitive, companies and organizations will have greater incentives to lower prices, to improve the quality of their goods and services, and also to provide the buyers with more other options. It forces the firms and companies to provide their inputs in the most possible way so that the market can be enriched with the goods and services at the lowest possible costs. It drives out the inefficient companies from the market whereas the efficient companies come into limelight because of competition in the market. It always persuades the companies to innovate and create some new goods and services which helps them to gain the market share. Therefore, competition leads to economic growth as well as technological progress.
The Competition Act, 2002 is regarded as a landmark legislation to protect appreciable adverse effects (AAEC) on trade-related competition in the relevant market, to promote and sustain competition in markets, to safeguard the interests of consumers and to secure the freedom of trade. Trade is very much important for any country because no country is able to produce each and every product which it needs. Therefore, it was necessary to make laws and regulations to secure the positive and supportive environment so that they can govern and manage trade. Articles 301-307 (Part- XIII) of the Indian Constitution deal with the freedom of trade, commerce and intercourse whereas Article 19(1)(g) (Part III) talks about the freedom to practice any occupation, trade or business in the interest of the common people.
In India, the Competition Act, 2002 is enacted so as preventing the appreciable adverse effects on competition and ensure the sustainability of competition of trade in the relevant market. This Act safeguards the interests of consumers and also gives permission to the participants to be engaged in any trade with freedom. Among them, e-commerce becomes India's fastest growing and most exciting platform for commercial transactions. In simple terms, it is the meeting of buyers and sellers through internet. As of now, it becomes easier for the top brands to reach Indian customers especially after the construction of the e-commerce sector in India. Therefore, it has emerged as one of the fast-growing trade platforms available for the cross-border trade of goods and services.
Competition laws in India shares a common purpose to promote innovation, competition and the enhancement of consumer welfare in both normal trade and e-commerce. In this paper, we will try to discuss how e-commerce platforms are regulated by the competition law. We will also try to see its loopholes or problems and to find out its solutions.
Keywords: Competition Law; E-commerce; Trade; Market; India
