Globalization and liberalization led to the opening up of the Indian economy.

The Monopolies and Restrictive Trade Practices Act, 1969 had become obsolete in the light of certain international economic developments relating to competition laws and therefore the shift from curbing monopolies to promoting competition. The Competition Bill, 2001 seeked to ensure fair competition in India by prohibiting trade practices which causes appreciable adverse effect on Competition in markets within India. Anti-Competitive Agreements under the Competition Act, 2002 are in the nature of Restrictive Trade Practices under the MRTP Act. It provides for prohibition of entering into anti-competitive agreements making it unlawful for any enterprise or association of enterprises or persons or association of persons to enter into an agreement in respect of production, supply, storage, distribution, acquisition or control of goods or provision of services which causes or is likely to cause an AAEC within India. All such agreements entered into in contravention of this prohibition shall be void. It also lays down certain activities which shall be presumed to cause AAEC. Anti-Competitive Agreements can be horizontal or vertical in nature. Horizontal agreements is between two or more enterprises that are at the same stage of production chain and in the same market. Vertical agreements are between enterprises which are at different stages or levels of production chain. Article 81 of the Treaty of Rome is the law regulating Anti-Competitive Agreements in the European Community. It prohibits agreements between undertaking that may affect trade between member states and which have as their object or effect the prevention, restriction or distortion of competition within the common market. The agreements falling under this Article are automatically void unless specifically exempted.