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VOL. 7, ISSUE 4 (2025)
The impact of competition law on market efficiency and corporate performance in India
Authors
Tanushree Khichi
Abstract
Competition law constitutes a foundational pillar of modern market
economies. In India, the journey from the Monopolies and Restrictive Trade
Practices (MRTP) Act, 1969, to the Competition Act, 2002, represents a decisive
shift from a command-and-control regulatory philosophy to a liberalised,
efficiency-oriented framework. This study examines the dual impact of
competition law on market efficiency and corporate performance in India through
doctrinal and analytical research methodology. Drawing upon statutes, landmark
judicial and quasi-judicial pronouncements, economic literature, and
institutional reports, the paper interrogates how the Competition Commission of
India (CCI) has operationalised the mandate of the Competition Act, 2002,
across sectors ranging from manufacturing to digital markets. The findings
establish that competition law has contributed materially to reducing
cartelisation, curbing abuse of dominant positions, and subjecting large-scale
mergers to rigorous scrutiny, thereby promoting allocative efficiency and
consumer welfare. At the corporate level, the enforcement regime has
recalibrated business strategies, influenced pricing decisions, and imposed
compliance obligations that ultimately strengthen governance standards. The
paper critically analyses persistent enforcement limitations, the challenges
posed by digital platform economies, and the reforms introduced by the
Competition (Amendment) Act, 2023. It concludes with policy recommendations for
institutional strengthening, regulatory coordination, and sector-specific
digital market regulation. The study contributes to the growing literature at
the intersection of competition law, economics, and corporate governance in the
Indian context.
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Pages:184-191
How to cite this article:
Tanushree Khichi "The impact of competition law on market efficiency and corporate performance in India". International Journal of Law, Policy and Social Review, Vol 7, Issue 4, 2025, Pages 184-191
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