What is Monopolistic Trade Practices (MTP)?
A monopolistic trade practice (MTP) is one in which economic power relating to production and marketing of goods and services is concentrated in hands of a single player, by eliminating potential competitors, limiting technical know how and development, controlling supply and prices in market, preventing or reducing competition, deteriorating product quality or by adopting unfair or deceptive trade practices. The Act defines, monopolistic trade practice (MTP) as a trade practice which has or likely to have the effect of:
Maintaining the goods prices or service charges at an unreasonable level by deliberate limiting, reduction or otherwise controlling the production, supply or distribution of goods or offering any services.
Curbing or lessening competition in the normal supply or distribution of goods or supply of any services.
Limiting technical know how, development or capital investment to the detriment or causing deterioration of quality of any goods produced, supplied or any services rendered, in India.
Unreasonably increasing the: (a) Cost of production of any goods or (b) Charges for the provision, or maintenance, of services.
Unreasonably increasing the: (a) Prices at which goods are, or may be, sold/sold.(b) Charges at which the services are, or may be, provided. (c) Profits which are, or may be, derived by the production, supply or distribution (including the sale or purchase of any goods) or in the provision or maintenance of any goods or by the provision of any services.
Preventing or lessening competition in the production, supply or distribution of any goods or in the provision or maintenance of any services by the adoption of unfair and deceptive practices.