MRTP Act will be replaced in 2011

Hyderabad

Oct. 3: The Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act) will cease to be in force from 2011 and will be replaced by the Competition Act, 2002.
The Centre had earlier notified the provisions dealing with anti-competitive agreements (Section 3) and abuse of dominance (Section 4) in the Competition Act in May 2009. However, Sections 5 and 6 that deal with combinations, mergers and acquisitions are yet to be notified.
This has resulted in ambiguity and confusion as there were effectively two independent statutes, the MRTP Act and the Competition Act having concurrent jurisdiction. This has led to the uneasy coexistence of two anti-trust regulators without reconciled powers and functions, the MRTP Commission and Competition Commission of India (CCI).
“The Centre is in the process of notifying Sections 5 and 6 in the Competition Act. Once it does, the MRTP Commission will be repealed. It is under active consideration of the government. Then, the Competition Commission of India will remain the single regulatory authority in the country to protect the interests of consumers, ensure freedom of trade carried on by other participants in markets, eliminate unhealthy practices having adverse effect on competition,” said Mr Dhanendra Kumar, chairman, CCI, at Babul Reddy Foundation seminar here on Saturday.
Justice Altamas Kabir of the Supreme Court and Justice Arijit Pasayat, chairman, Competition Appellate Tribunal, participated at the meeting.
As per Section 66 of the Competition Act that was notified in September, the MRTP Commission will function for two years from September 1, 2009, to dispose of the pending cases dealing with Restrictive Trade Practices (RTP), Monopolistic Trade Practices (MTP) and those involving a combination of RTP, MTP and Unfair Trade Practices (UTP).
After that, these cases will be transferred to the appellate body formed under the Competition Act, that is, the Competition Appellate Tribunal (CAT). CAT is required to decide these cases in accordance with the MRTP Act, as if the MRTP Act had not been repealed.