Concept & Function of market and Role of Competition Law

Markets are central to every economy—they bring buyers and sellers together, shape prices, encourage innovation, and help allocate resources efficiently. However, without proper regulation, markets can become distorted by monopolies, unfair trade practices, and barriers that limit entry and consumer choice. To counter these risks, antitrust and competition laws have been developed across the world to ensure fairness and protect public interest. This paper is divided into three parts. The first part explains the concept and function of markets, focusing on how they operate and the essential role competition plays in keeping them healthy. The second part traces the global evolution of antitrust laws, from their origins in the United States to their adoption in other parts of the world. The third part focuses on India’s experience, highlighting the shift from the Monopolies and Restrictive Trade Practices (MRTP) Act to the more progressive and enforcement-oriented Competition Act of 2002. Together, these sections show how competition law has become a key tool in maintaining market balance and protecting consumer welfare—both globally and within India.