Competition in business This is the problem of all the business people, in today’s era of technology, the way of doing business is changing so fast and even good big companies end up with a wrong decision. For this, the right strategy has to be made for the business, on the other hand the government gives protection to the companies by making laws.
In this, most of the companies who have more capital or political power want to establish their dominance in such company or market. On the other hand, the government also pays attention to the protection of customers, so it is very difficult for a small company to compete openly in today’s market, when in front of the world’s big giant company or on the strength of its capital and technology, to eliminate the small business. you want
We recently saw the dispute of Reliance Jio and the rest of the telecom company Yo, where many companies could not stand in front of Jio and got destroyed. At such a time, it would not be a lot of company to go to whom. No strategy works on this, it becomes necessary to have the legal protection of the government. So today we will see in detail what is the provision for this here in India.
Business Companies Accounting in India –
Under the Companies Act, there are a total of 21,51,349 companies in India as of March 31, 2021, out of which 13,44,857 companies are active companies, 7,58,350 companies have been closed. Of the 6,893 companies that are in bankruptcy proceedings due to continuing losses or for other reasons, 38,983 are on the verge of bankruptcy. There are 65,942 companies or it is a public limited company, of which 6,740 are listed companies that raise money from the stock market and 12,33,768 are companies or private limited companies. We are talking about such companies which have a large level of capital.
The number of companies running the company at the proprietor sheep level is the largest in India, which run their business on a small scale. Big companies or big companies have their influence on what should be the policy of the world and the country, but small and small companies only keep on running according to the law and order changes they make.
We see small businesses fighting for their rights collectively, but big companies keep them in check with the influence of their money. Sometimes it even goes to the negative level. The question is, in such a situation, how to compete with big companies?
Technology & Capitalism –
Large company or if on the basis of money and technology weakens small companies by establishing monopoly or dominance in the market, or depends on itself. What strategy can a small company have for this? He has to compromise, it may be money or time.
That is, we see small companies or when a company fulfills its work order, it has to wait for months to get its payment. It is very difficult and expensive for a small company to take capital from the market as compared to a big company, so to do business, the small company has to do business in a very opposite situation.
Legal expert and Businesses –
Big companies hire big legal expert company for themselves and also keep legal staff. It is very difficult for small companies to afford this, so they decide their business policy on the advice of their chartered accountant otherwise tax consultant.
Due to which there is no strategy for how to handle the business policy of the government and have to work under the dominance of big companies on low margin and sometimes have to keep their business in competition through money, this increases the production cost. Is.
These small companies do not have any strategy for profit margin and government policy, so it cannot survive in that area for long. Legal advice is important for us to benefit from registering our company under which act, who can give correct advice about government policies and laws.
Research & Development –
Anyway, India’s biggest companies in research and development are far behind at the international level, so we are not able to compete there. Foreign company or research and development spent a lot of money, this helps a lot in increasing the success of the business.
Small companies do not do this work and the profit of margin is so low that it is difficult to invest capital for this. Research and development are considered to be the most important strategy to stay competitive in the market.
Laws for Competition in India –
Prior to 2002, the MRTP Act was applicable in India, in which only competition made the center point, in which businesses were run with a lot of restrictions, but many small businesses were run without register. Many changes were made in 2002 under the Competition Act, under which many restrictions were removed and some provisions were made in this law for the first time to protect small business. Our problem is that we do not know how to get its benefits due to lack of legal experts.
Brief outline of Competition Act 2002 –
- ANTI COMPETITION AGREEMENT
- ABUSE OF DOMINANCE
- COMBINATION REGULATION
- Competitive Guidance / COMPETITION ADVOCACY
Competition Commission of India –
Under the Competition Act, the Competition Commission was made a regulatory authority, under which protection has been given for fair competition in the market and also for small business and customer segment. Big company yo know its advantages and limitations, but small company yo do not know about it, so they are not able to take its benefits.
Our reason for choosing this topic is that small businesses can know about this law and take advantage of it. How does this law work and how to file a complaint in this and how our business gets protection so that the right competition in the market and the customer gets the products and services at the right price, how does this regulatory authority investigate any complaint. Is.
- Working to prevent practices that adversely affect competition
- Promote and maintain competitiveness in the market
- protect consumer interest
- ensuring freedom of business
How to make a complaint to the Competition Commission / Complaints to CCI-
In today’s online and internet era, all government facilities are available on the internet. Hence the company and company’s disputes and company and customer disputes are sent online on CCI’s website with proof. Because CCI protects the rights of both the customer and the company.
- online case filing
- presenting evidence online
- Sending notice to the opposing party by the Chief Officer of the CCI during the investigation
DG sends his report to the commission
- The commission shares this report with both the parties.
- Both the parties submit their objections
- oral hearing
- CCI takes more than 30 days to give its decision
- The dissatisfied party can appeal to the Supreme Court
Why Competition Commission was needed / Need of CCI –
Until the 1990s, most companies were run under government or government control, making it difficult to grow a small company, for which the Monopoly Restrictive Trade Practices Act 1969 was replaced by the Competition Act 2002. Due to which free-fair business practices and reforms were made to not allow the dominance of any particular company.
In this, the interest of the small company was given importance and along with the Consumer Protection Act, a customer can also get the protection of his rights under the CCI. Even today, due to lack of knowledge of the small company law, they keep getting exploited by the rules and authority of the big company and do not want to go to the court due to the delay in the decision of the judicial system and keep business by compromising.
In this system, with the convenience of the Tribunal, we can avoid the proceedings of the traditional court and get justice quickly. Right legal guidance can increase your company, so small company has to be explained how to get the right advice.
Competition Commission Features / Features of CCI –
- This law was introduced in 2002 but it was implemented in lieu of MRTP Act and changes were made in it from time to time.
- The agreements which could put an end to the competition were declared void.
- There was a ban on building dominance in the market in a wrong way.
- Established to resolve disputes through tribunals so as to save time and money of going to court.
- Wrongful cartel i.e. Federally controlling the market was considered illegal.
- Open competition was considered a priority.
- Efforts were made to provide security to the customer and small business.
- Government control was reduced to as little as it could to help the small company grow.
- The regulatory authority, through the CCI, was set up to oversee the exploitation of other companies on the strength of capital and technology.
- Customers and companies got the convenience of filing complaints online.
- Customer against the company and company against company disputes will be seen.
In this way we have seen what is the purpose of the Competition Act and how it was passed. Small companies are deprived due to not being aware of their rights and are unable to increase their business. Large company or political influence and money power also keep such organization under its influence.
Due to which registration the company will be in profit, confusion also spread in the market, due to which the company does not grow. Registering a company under the Companies Act is a difficult task, but your legal rights and goodwill of the company increase the profile.
No one tells this and we also do business in partnership if not proprietorship due to costly process. No one tells the benefits that you get by registering under the Companies Act, your company profile increases, due to which many good companies can give you new work orders.
Here we try to give the right information for the small company and those who are thinking of starting a business. Through this medium, the purpose of telling about Competition Act and Competition Commission is that if there is any wrong happening with you from a big company in the market, then you can go to CCI.