MONOPOLIES AND RESTRICTIVE TRADE PRACTICES ACT, 1969.: MONOPOLIES AND RESTRICTIVE TRADE PRACTICES ACT, 1969. INTRODUCTION: INTRODUCTION The Monopolies And Restrictive Trade Practices Act, 1969 is an important piece of economic legislation designed to ensure that the operation of the economic system does not result in the concentration of economic power to the common detriment. The act came into force from 1 st June, 1970, and has been amended in 1991. OBJECTIVES: OBJECTIVES Before Amendment in1991:- Regulation of monopolies and prevention of concentration of economic power. Prohibit monopolistic, restrictive and unfair trade practices. After Amendment in 1991:- Controlling monopolistic trade practices. Regulating restrictive and unfair trade practices. MONOPOLISTIC TRADE PRACTICES: MONOPOLISTIC TRADE PRACTICES It means in order to maximize profit and to increase market power, certain business firms unreasonably charge high prices to prevent competition in the production & distribution of goods by adopting unfair trade practices. It is a trade practice which represents the abuse of the market power by charging unreasonably high prices. REGULATION OF MTPs: REGULATION OF MTPs Regulation of production and fixing the term of sale. Prohibiting any action that restricts competition. Fixing standards for goods produced. RESTRICTIVE TRADE PRACTICES: RESTRICTIVE TRADE PRACTICES A trade practice which restricts or reduces competition may be termed as Restrictive Trade Practices and it harm the consumer interest. Because of their adverse effect on the consumer and public interest, they are sought to be regulated in almost every country of the world. REGULATION OF RTPs: REGULATION OF RTPs The practice shall not be repeated. The agreement shall be void and shall stand modified in such a manner as may be specified in the order. UNFAIR TRADE PRACTICES: UNFAIR TRADE PRACTICES Unfair trade practice means a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair or deceptive practice. REGULATION OF UTPs: REGULATION OF UTPs The practice shall not be repeated. Any agreement relating to such an UTP shall be void or shall stand modified in such a manner as may be directed by the commission. CONCLUSION: CONCLUSION The MRTP Act, besides adversely affecting economic growth, blunted Indian companies’ ability to grow, consolidate and improve competitiveness. This has had a very dampening effect on their global competitiveness.