Monopoly Control Authority was established in 1970.The broad objective of the existing law i.e. the Monopolies and Restrictive Trade Practices (Control and Prevention) Ordinance, 1970 is to provide for measures against undue concentration of economic power, monopoly power and restrictive trade practices. The law spells out the situations which shall be deemed to constitute undue concentration of economic power, unreasonable monopoly power and unreasonably restrictive trade practices. The scheme of the law is to prohibit these clearly defined situations and to collect information through the process of registration about these and other circumstances which are likely to lead to such situations.

2. The existing law was enacted in the backdrop of reaction to the creation of 22 families in the decade1958-68 and is not in line with the policy of the government for a free market economy with key elements of liberalization, de-regulation, privatization and attracting investment. The present day international best practice is to provide for a competition regime in all spheres of economic activity. Accordingly, anti-competitive behavior in all its form is to be discouraged. At present MCA is engaged in finalizing a Competition law with technical assistance of the World Bank. This will entail capacity building and creation of a new Competition Authority. Competition advocacy is also being given the importance it deserves.

3. In the past six months, the Authority handled cases of restrictive trade practices in Sugar and Cement industry. Sugar mills which were withholding stocks were directed to release stocks so that artificial shortage of the commodity is not created in the market. The cement factories were found involved in restricting production, dispatches and price increase. They were directed to break the cartel and reduce prices. The cement factories did not report compliance of Orders of the Authority. After due process, penalties have been imposed as provided in the Ordinance. About 165 pending Show Cause Notices have also been reviewed. All such Notices not in line with the existing investment policy have been settled.

4. MCA is striving for a competition regime in which level playing field is provided between public and private sectors as well as local and foreign investments. There should be no barriers to entry and exit. The important lesson of history is that interest of the consumers should not be sacrificed at the altar of free market economy.