The correct answer is: Both A and B.
The Competition Act, 2002 is an Act of the Parliament of India enacted to provide for the establishment of a Competition Commission of India for the promotion and regulation of competition to protect the interests of consumers, to promote efficiency in production, distribution and services, to prevent practices having adverse effect on competition, to promote and protect the interests of small enterprises, and for matters connected therewith or incidental thereto.
The Act seeks to regulate anti-competitive agreements, mergers and amalgamations, and unfair trade practices.
Anti-competitive agreements are agreements between enterprises, which have the effect of preventing, distorting or restricting competition in India. These agreements can be horizontal, i.e., between enterprises operating at the same level of production or distribution, or vertical, i.e., between enterprises operating at different levels of production or distribution.
Mergers and amalgamations are combinations of two or more enterprises into a single enterprise. The Competition Commission of India (CCI) has the power to regulate mergers and amalgamations which have an appreciable adverse effect on competition in India.
Unfair trade practices are practices which are adopted by enterprises in their commercial dealings with other enterprises or consumers, which are unfair and have the effect of distorting competition in India. These practices can include, but are not limited to, misleading advertisements, deceptive pricing, and tying arrangements.
The CCI is the statutory body responsible for enforcing the Competition Act, 2002. The CCI has the power to investigate complaints, issue orders, and impose penalties for contravention of the Act.