MRTP Full Form
What is the full form of MRTP?
The MRTP stands for Monopolistic and Restrictive Trade Practices. An MRTP commission was created under this. The MRTP Act was put into place to prevent monopolies. In 1991, the MRTP Act was loosened.
This Act was passed in order to regulate monopolies, ban monopolistic and restrictive trade practices (MRTP), prevent the concentration of economic power to the detriment of the general welfare, and address related issues. It was India's first piece of legislation to regulate the market, even though it was later repealed and replaced by the Competition Act of 2002. A fourth objective was added to the act in 1984 as a result of an amendment that was introduced.
Objectives of MRTP
Some of the objectives of the MRTP Act are:-
The law prevented the consolidation of economic authority under the control of many corporations.
To create control over monopolies.
Ensure that monopolies are controlled and that monopolistic and constrictive commercial practices are prohibited by taking the necessary steps.
Regulations should apply to business activities like monopolistic or restricted ones.
Control of dishonest business tactics prohibitions against using monopolistic trade tactics.
The prohibition of trade restrictions.
Limitations on Using Unfair Trading Practices
Disadvantages of MRTP
Some of the objectives of the MRTP act are:-
A commission lacking appropriate funding.
The government is unable to effectively address anti-competitive behavior because of a lack of clarity, onerous procedures, and constrained resources.
There is no mention of any apparent anti-competitive behavior.
The MRTP Act does not specifically mention cartels, predatory pricing, manipulation, or other anti-competitive behavior.
When the MRTP Act was being developed, India was entirely characterised by its many provisions in the local economic and commercial environment. However, there has been a substantial drive for globalisation, privatisation, and liberalisation ever since.
As a result, the law needed to be modified to reflect shifting trade and economic conditions.
Frequently Asked Questions (FAQs)
The Consumer Protection Act and the MRTP Act encourage competitiveness. In both laws, the concept of the public interest—which includes the interests of consumers—permeates the legal framework that forbids monopolistic, constrictive, and unfair economic practices.
Obsolete Law - As was already established, the MRTP missed the adaptive aspect required in such a vibrant economic context.
On the advice of the Raghavan Committee, the Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act) was abolished and replaced by the Competition Act, 2002.
The one-member commission currently holds two courts per day even though a quorum of two members is needed.
It is legal to gain a monopoly by superior products, innovation, or economic acumen, but doing so through predatory or exclusionary behavior may be illegal under antitrust laws.