INTERFACE BETWEEN COMPETITION AND CONSUMER PROTECTION LAW IN INDIA

Abstract

Several studies have been conducted to study the impact on consumers and producers of anticompetitive policies in both developing and developed countries. Damages caused to developed countries by such policies have consequences for consumer buying power through price increases. A World Bank report shows that developing countries imported products worth US$ 81.1 billion in 1997 from sectors where firms were engaged in price-fixing deals in the 1990s. These products accounted for 6.7% of imports and 1.2% of GDP in developing countries, respectively. These statistics show the importance of the economic effects of the harm done to developing economies by anti-competitive practices. The most evident consequence of such activities is seen in the form of price rises in markets involving cartels that limit production or control the price and abuse of dominant market power by the firms. Government policies such as consumer protection, macroeconomic policies and poverty reduction, the growing synergies between competition and consumer protection law enforcement to ensure consumer interests is an important driver for economic growth. This paper tries to understand the objectives and goals of competition law and consumer protection law to attain consumer welfare and highlight how they communicate with each other, and whether Indian laws protects consumer welfare, competition or competitors.