Monopoly is generally defined as a situation where there is just one vendor in the market. The monopoly situation is considered the polar opposite of perfect competition in traditional economic theory. As a result, the monopolist has great control over the price it charges, implying that it is a price maker rather than a price taker. The exclusive possession or control of a commodity’s or service’s supply or commerce. A monopoly is when one corporation holds a dominant position in an industry or sector to the extent of excluding all other feasible rivals. Monopolies are often frowned upon in free-market countries. Due to a lack of other options for customers, they are perceived as contributing to price gouging and decreasing quality. They can also concentrate money, power, and influence on a small number of people. On the other hand, monopolies of some essential services such as utilities may be encouraged and even enforced by governments because sometimes it is essential for a country’s development.

The Monopolistic and Restrictive Trade Practice Act (MRTP), 1969, has defined the practices which constitute a Monopolistic Trade Practice. According to the Act, a monopolistic trade practice is one, which has or is likely to have the effect of:-

1. Limiting, lowering, or otherwise regulating the production, supply, or distribution of products or services to keep prices of commodities or charges for services at an unreasonable level;
2. Unreasonably blocking or diminishing competition in the manufacture, supply, or distribution of any products or services, whether or not via the use of unfair methods or deceptive techniques;
3. impeding technological advancement or financial investment to the disadvantage of the general public;
4. causing the quality of any items produced, provided, or distributed to deteriorate; and
5. Increasing unreasonably or unduly –

1. the cost of production of any good; or
2. charges for the provision, or maintenance, of any services; or
3. the prices for sale or resale of goods; or
4. the profits derived from the production, supply or distribution of any goods or services.

Relief available for the aggrieved victims of a Monopolistic Trade Practice:-

1. If the Commission’s investigation indicates that the trade practice under investigation operates or is likely to operate against the public interest, the Central Government may issue any orders it deems necessary to correct or mitigate any harm caused by the trade practice.

2. The Central Government may-based on the Commission’s probe report-

3. Prohibit the affected undertaking’s owner(s) from continuing to engage in monopolistic business practises; or

4. Prohibit the continuation of any monopolistic trading activity in regard to the products or services by the owner of any class of enterprises or undertakings in general.

Unless specifically approved by the legislation or the Central Government, monopolistic trading practices are considered to be harmful to the public interest. Any monopolistic trading conduct may be investigated by the Commission on the basis of a referral from the Central Government, an application from the Director General, or upon its own knowledge or information.

References:-

1. https://www.advocatekhoj.com/library/lawareas/mono/practices.php?Title=Monopolistic%20and%20Restrictive%20Trade%20Practice&STitle=Monopolistic%20Trade%20Practices 
2. https://www.investopedia.com/terms/m/monopoly.asp 

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

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In the year 2021, we wrote about 1000 Inspirational Women In India, in the year 2022, we would be featuring 5000 Start Up Stories.