Introduction
Educational institutions are often perceived as providing service of the highest order to the society, by creating good citizens for a better tomorrow. But in today’s era of globalization and fast-paced Economy, Neo-Entrepreneurs have capitalized on the fact that the youth of the world requires quality education and a good skill set for survival, and they are willing to invest hefty amounts of money for the same. This is where the corporate world of mergers, cartels and market abuses apply to the mushrooming businesses in the Educational Sector.
Competition Law regulates the activities of those offering services or goods, for the benefit of the consumers. The crucial objectives of the Competition Act, 2002 include protection of the interests of the consumers as well as to promote and sustain competition in the markets. Effective competition is the key to efficiency and productivity in businesses, including those in the Educational sector[1]. Healthy competition encourages innovation, cost and production efficiency and enhanced consumer satisfaction because of which businesses strive to keep ahead of their competitors. However, the stiff competition also creates incentives for unethical traders to ‘cut corners’ to beat their rivals, and this is where the Competition Authorities such as the Competition Commission of India (CCI) must step up the investigation, advocacy and enforcement procedures, the need for which is highlighted by this article.
[1]Fels, A. (1998). The impact of competition policy and law on higher education in Australia. In: AUSTRALASIAN ASSOCIATION FOR INSTITUTIONAL RESEARCH 1998 INTERNATIONAL CONFERENCE. [online] Australian Competition & Consumer Commission.