In 2007, Competition Promotion and Market Protection Act, 2063 (2007 A.D.) was enacted to promote fair competition.
What is the purpose of the Act?
- It seeks to eliminate unwanted interferences in the market caused by dominant entities.
- The Act aims to discourage monopolistic practices that hinder competition.
- It also aims to discourage trade practices that restrict competition.
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How does the law protect you?
- The Act says that companies cannot make agreements that harm competition.
- It also says that companies cannot abuse their power if they are dominant in the market.
- The Act prohibits mergers and acquisitions that are meant to control competition.
- It also bans bid-rigging, which means manipulating bids unfairly, and tied selling, which means forcing customers to buy one product if they want another.
- The Act prohibits misleading advertisements.
- The Act also limits exclusive deals and arrangements that could restrict competition for similar products.
What businesses are not covered under the Act?
If you are into the below-mentioned business or trade activities competition law does not cover or apply to you:
- Business activities related to cottage and small industries as defined in the Industrial Enterprises Act, 2049 (1991).
- Agricultural products produced by small farmers as specified, and agricultural cooperative businesses.
- Procurement of raw materials.
- Export business.
- Activities carried out to protect the labor’s right to collective bargaining.
- Research and development activities.
- Management collaborations.
- Collaborations aimed at improving organizational and procedural aspects to enhance trade capacity.
