The Constitutional Basis for Government Regulation of Concentration of Economic Power, Monopolies and Restrictive Trade Practices: The Indian Case

The article focuses on the constitutional issues involved in the regulation of concentration of economic power, monopolies and related phenomena of anti-competitive trade practices. The dangers from the monopoly problem have clearly been recognised in the Indian Constitution in a number of provisions. The paper critically examines such provisions as well as the Indian Constitution's attempts at achieving the balance between various interests involved in the regulation of concentration of economic power, etc. The article attempts to establish, with the help of the decided cases, that the non-justiciable directive principle of the state policy contained in the Indian Constitution, directing the state to prevent concentration of economic power to the common detriment, has come to occupy in the Constitution a place higher than the justiciable fundamental rights to equality and various freedoms, including the freedom of trade. It is also attempted to establish that the conferment of monopoly rights by the state on a private individual or corporations is prima facie invalid, but such grants may be justified if the basis on which competition is excluded is reasonable. It has been argued that although the Constitution confers freedoms of association and trade, it permits restrictions on the anticompetitive activities of trade associations and authorises positive and purposeful steps to create competitive market conditions.