Equity Cartels and Economic Policy Challenges - An Indian Evidence
Posted: 17 Sep 2009
Date Written: September 16, 2009
This research paper is about the Equity Cartels and economic policy initiatives based on the challenges thrown up by cases like that of Ranbaxy. The case also puts some light on the price fixing issue under cartel effect the economy, which occurred in Ranbaxy during 1996-2008. The regulators are concerned about the carteling behaviors of companies that impact the economic and price controls that increase monopolistic tendencies. Globally, the Organization for Economic Cooperation and Development has contributed significantly to curb the hardcore cartels. The 1998 Recommendation on Hard Core Cartels focused the efforts of the International enforcement community on tracking the cartels and prevents them. The 2005 Best Practices for the Formal Exchange of Information between Competition Authorities in hardcore investigations facilitate setting up of safeguards that the member countries and enable transfer and exchange material and confidential information in cartel investigations.
In India, Monopolistic and Restrictive Practices Act (MRTP Act) has paved a gravelly way to a more inclusive and well drafted Competition Act to benefit the economy as a whole. This regulatory effort also enables of trade by Multi National Companies entering the India territories.
Keywords: Ranbaxy, Cartels, Indian Pharmaceutical Industry, Pricing
JEL Classification: G32, G34, H87, H89
Suggested Citation: Suggested Citation