Competition Law in Practice: Checkpoint 1

Quick checkpoint - five questions on India's competition law, cartels, leniency, dominance and mergers.

Quick checkpoint - five questions on India’s competition law, cartels, leniency, dominance and mergers.

Question 1 of 5 What was the main focus of the MRTP Act compared with the Competition Act?

The MRTP Act focused on the size of firms; the Competition Act focuses on behaviour Both focused only on exports The MRTP Act promoted monopolies The Competition Act bans large firms

The modern law allows firms to grow but targets harmful behaviour.

Question 2 of 5 What is a cartel?

A government-owned company A group of competitors secretly agreeing not to compete A type of merger approval A tax on imports

Cartels fix prices, share markets, restrict output or rig bids.

Question 3 of 5 Why do leniency programmes help catch cartels?

They give cartel members tax breaks They create a race to confess, since the first to report gets the biggest penalty reduction They make cartels legal They allow price fixing in small markets

Leniency creates a prisoner's dilemma that destabilises cartels.

Question 4 of 5 Under Indian competition law, is being dominant illegal?

Yes, always No, but abusing a dominant position is Only for foreign firms Only in telecom

Firms can become dominant by serving customers well; abuse of that position is prohibited.

Question 5 of 5 What did the 2023 amendment's deal value threshold change?

It removed all merger reviews It requires approval for deals over 2,000 crore rupees with substantial Indian operations, even if the target has low turnover It banned foreign acquisitions It applies only to banks

The threshold captures valuable digital deals that asset and turnover tests missed.

← Back to Predatory Pricing: Low Prices as a Weapon Next lesson → Vertical Restraints: Rules Between Makers and Sellers

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