Is there any relation between India’s policy in the year 1991, which led to the opening of the market to the global economy, and the global competition law? Before looking into that, why did India open its market to global countries? Were the policies relating to Liberalization, Privatization and Globalization worked, or in other words, working properly so far, and if yes, then what are the regulations that came up in the Indian economic policy after the 1991 scenario. This article will look into it and will also introduce the international aspects that come under the competition law across the global countries.

Why does Global Competition law exist?

The emergence of Globalization of the market has greatly influenced both the national sovereignty and the policy-making powers of a nation within its boundaries. It has influenced the former through its feature to connect a particular nation or, in specific terms, to integrate a nation with the rest of the world. Secondly, due to such integration, globalization had many impacts on the policy framing aspect of concerning nation, which exactly ranges from reducing the concentration of power to exemption or increase in import and export trades. In some way or the other, International Trade makes an interface with the Competition law and policies.

But, the main question is, why do competition laws concern International Trade and commerce? The answer for which is where the purpose and the objective of Competition Law, both internationally and at the domestic level, found its origin. The answer to the earlier question is that the competition laws make sure that that there is mutual and uniform consensus that are present at the international laws which govern the competitions at the international market and trade. They concur with the consensus that the competition laws should be in a position to ensure the welfare and efficient market economies across the globe. It is the duty of these laws to regulate International competition between countries. This is the main purpose or objective behind the presence of International Competition laws.
Are all the competition laws across countries the same? The answer is for that is definitely negative. It is important to note that even though competition laws focus on consumer welfare and efficiency, all countries have adopted their laws as per their regional market character. European nations focus more on small-scale enterprises rather than on a consumer-oriented approach. India’s approach is also different where there is the concentration of market power in the hands of few, even though the same has not been the same in theory.

International Competition laws: Historical Perspective

If we look from the Historical perspective, International Trade after the Second World War was focused much by the countries across the globe. This is the time where the need for the creation of the International Trade Organization was felt to its greatest extent, especially with the United Nations, who tried to prohibit the scenario which took place before the Second World War. International Trade Organizations ensured economic co-operations in the field of trade, and through this, the Havana Charter came into existence. But, the question is whether this charter had the provisions relating to International competition policy or not? The answer to this is partial yes, because of the presence of article 46 under chapter V of it. This article was agreed by the members to co-operate in the International trade and not to affect the same through their activities. Restriction of monopolistic practices was a part of it. Thus, we can assume that this charter initiated the anti-competitive practices in global competition law.

After Havana Charter, it was GATT, which was General agreement on Tariffs and Trade, which also had no mandatory provisions relating to the competition policy, and later European Union’s treaties witnessed the inclusion of competition-related laws and policies. The same can be observed through Article 65 of the said treaty. If we look into Article 65 (1) of the Treaty, it states that all the agreements and undertakings which would tend to restrict or distort the normal competition within the market shall be prohibited. In the same way, Article 66 of the treaty ensured that there is no concentration of powers in the market economies.

Current Competition laws:

Having seen the above treaties and historical scenario with respect to the competition policies and laws, it is important now to focus on the current and existing conventions and institutions at the International level to regulate the global competition. It was in the year 1953, United Nations Draft Convention Restrictive Practices have been endorsed, and the same was required to get ratified by the United Nations member nations. It mainly focused on the industrialized nations, and they have been provided to ratify the same.

Another Institution that later focused on the competition policy and the laws was in the year 1967. It was the Organization that worked for the Economic co-operations and their developments (OECD). As per the reports, Organization for Economic Co-operation and Development acts on the international platform in order to build and promote better economic policies for better lives.

In 1964, United Nations Conference on Trade and Development (UNCTD) works for curbing the regulations which would ultimately stifle the competition in the International market across the globe.

Lastly, it is important to look into the United Nations Conference on Restrictive Business Practices, which basically approved the Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices (The UN Set) in order to adopt as a resolution among the countries. It is reported that this UN Set has been accepted and agreed as a multinational agreement on the competition policy, which will ensure that there are rules that restrict the anti-competitive trade and practices. It also recognizes policy to promote competition law across the global countries.