DECODING COLLUSION: ANALYZING CARTEL PRACTICES AND THEIR IMPLICATIONS IN COMPETITION LAW

The loopholes of the Monopolies and Restrictive Trade Practices Act, 1970, such as its outdated focus on curbing firm size rather than promoting competitive conduct, its limited enforcement capacity, absence of key definitions, and inability to address modern anti-competitive practices, led to the creation of the Competition Act 2002. This legal research paper will investigate the implications of collusive practices within the Competition Act, 2002 framework. Competition Law of India finds its jurisprudential and Constitutional basis in Articles 38 and 39 under Part IV (Directive Principles of State Policy) of the Constitution of India. At the outset, the Indian competition law was enacted in 1969 and christened the MRTP Act. Collusion, which is the agreement between competitors to manipulate prices or restrict output, poses significant challenges to market efficiency and consumer welfare. The role of the Competition Commission of India is imperative, as well as the landmark judgements regarding cartels and collusion practices, such as Union of India v. Hindustan Development Corporation and others [1]had a great significance in shaping new guidelines and regulations. Furthermore, the paper explores potential strategies for preventing collusion, including enhancing transparency, fostering competitive incentives, and imposing strict penalties for violators.