Competition Act--FAQs

FAQs on Competition Act, 2002*

TaxPub Creative Cell

Following is a compilation of Frequently Asked Questions on Competition Act, 2002 which would assist the readers in understanding the basic concepts of this Act in an easy manner

Q.1 What is Competition ?

Ans. In common parlance, competition in the market means sellers striving independently for buyers patronage to maximize profit (or other business objectives). A buyer prefers to buy a product at a price that maximizes his benefits whereas the seller prefers to sell the product at a price that maximizes his profit.

Q.2 What is Meant by Unfair Competition?

Ans. Unfair competition means adoption of practices such as collusive price fixing, deliberate reduction in output in order to increase prices, creation of barriers to entry, allocation of markets, tie-in sales, predatory pricing, discriminatory pricing, etc.

Q.3. What are the Objectives of the Competition Act, 2002?