Patterns of MRTP Judgements (Relating To Restrictive Trade Practices) - A Preliminary Analysis

In this paper judgements of Monopoly and Restrictive Trade Practices Commission relating to Restrictive Trade Practices are analysed. This paper reports the analysis of these cases (29) on a number of indicators like nature of applicants and respondents, nature of allegations and distribution of allegations by nature of Restrictive Trade Practices and by product classification, nature of MRTPC orders etc. Even though, the number of cases decided so far and available to us are not sufficient to make any definite assessment regarding the pattern of MRTP judgements, ti is possible to discern certain interesting trends. Firstly, all the cases pertain to relationships between manufacturers and dealers or marketers and their contractual producers. The overall trends of these 29 judgments seem to indicate that the control exercised by the manufacturers on dealers through legal agreements has somewhat relaxed. It would, however, be of interest to investigate whether the actual relationships in the market place have undergone any change as a result of the orders passed. It is too early to say what impact this apparent transfer of power from manufacturers to distributors would have on the market structure, conduct and performance. This paper has made a beginning in the direction of analysing patterns of MRTPC decisions by the creation of an Information System, for coding, storing and retrieving the pertinent data regarding applicants, respondents, nature of allegations, nature of decisions and other useful information. We hope to gain several useful insights regarding the impact of the MRTP Act on market structure and marketing practices as the data base for this information system expands.