CARTELIZATION IN THE INDIAN COMPETITIVE MARKET

Abstract Competition in markets has slowly been increasing and the same is casting an effect on the Indian as well as international market. Competitors want to scale new heights at a short span of time and hence choose short-cuts to achieve such goals. One such short-cut is cartelization of markets wherein the competitors agree not to compete against each other and agree to work in co-operation with each other thereby leading to unhealthy competition. The same has been discussed extensively under the Competition Act, 2002 in India under Section 2(c). Determination of Cartels is a challenging task for the Competition Commission of India as there is thin line between competition and anti-competitive practices. The anti-competitive nature of cartel agreements has been severely criticized in this article by highlighting the illeffect of entering into such agreements in the Indian markets. This article discusses the basic features of cartel agreements and the kinds of cartel agreements.