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Three manufacturers of cement agree among themselves to fix a common selling price for the goods they sell, so that buyers under their sale contracts have no real choice. The sale contracts are otherwise valid under the Sale of Goods Act, 1930. Which authority is empowered to examine and act against this arrangement under India's regulatory framework?

The Competition Commission of India handles this, because an agreement among competitors to fix prices is an anti-competitive practice. The validity of each individual sale contract under the Sale of Goods Act does not protect the cartel. RBI, IRDAI and the Registrar of Companies do not regulate market competition.

  1. AThe Competition Commission of India, which regulates anti-competitive agreementsCorrect
  2. BThe Reserve Bank of India, because prices involve money
  3. CThe Insurance Regulatory and Development Authority of India, because goods are insured
  4. DThe Ministry of Corporate Affairs through the Registrar of Companies, which fixes market prices

Explanation

Price-fixing by competitors is an anti-competitive agreement, which the Competition Commission of India is empowered to investigate and penalise. The fact that individual sale contracts are valid under the Sale of Goods Act does not shield the cartel. RBI regulates banking and monetary matters, and IRDAI regulates insurance, so neither handles this.

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