In a constantly evolving economic scenario, the need for enactment of competition laws became apparent, The Competition Act of 2002 has been implemented to promote competition and ensure freedom of business. One of the major objectives of the competition act is to ensure that the concentration of economic power does not reside in the hands of a few affluent business houses.
In a bid to fulfill this objective, the Competition Act of 2002 prohibits parties from entering into anti-competitive agreements. This is done to ensure smooth market functioning and protect the interests of the consumer. Therefore, parties to an agreement, although possess the freedom of trade, they cannot enter into an agreement that might be anti-competitive in nature.
