In which year was the Competition Act passed by the Parliament in India?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4: 2002.
Explanation:
- The Competition Act was passed by the Parliament of India in the year 2002. This Act serves as a very significant milestone for the modern Indian economy.
- Objective: Its primary objective is to promote healthy competition in the market, prevent practices that have an adverse effect on competition, and protect the interests of consumers.
- Predecessor Legislation: It replaced the older MRTP Act, 1969 (Monopolies and Restrictive Trade Practices Act), which was deemed outdated for the modern, liberalized market.
- Competition Commission of India (CCI): Under this Act, the Competition Commission of India (CCI) was established in 2003; it functions as a regulatory body.
Key Facts (Quick Revision):
- Raghavan Committee: The framework for this Act was drafted based on the recommendations of the S.V.S. Raghavan Committee.
- Significant Amendments: Significant amendments were made to the Competition Act in 2007, and more recently in 2023, to align it with the digital economy and global mergers.
- Headquarters: The headquarters of the Competition Commission of India (CCI) is located in New Delhi.
Important Questions for Upcoming Examinations:
Question: On the recommendation of which committee was the 'Competition Act, 2002' passed?
Answer: The Raghavan Committee.
Question: In which year was the 'Competition Commission of India' (CCI) established?
Answer: 2003 (under the provisions of the Competition Act, 2002).
Question: Which older legislation did the Competition Act replace?
Answer: The MRTP Act, 1969.