The Doctrine of Purposive Interpretation: Strengthening Market Regulation under the Competition Act, 2002

The doctrine of purposive interpretation has become one of the most important principles of modern statutory interpretation, especially in economic and regulatory legislations. In a rapidly developing economy, laws regulating markets and business activities must be interpreted in a manner that fulfills their objectives rather than being restricted to literal meanings. The Competition Act, 2002 was enacted with the primary purpose of preventing anti-competitive practices, promoting fair competition, protecting consumer interests, and ensuring freedom of trade in Indian markets.¹ Since competition law deals with complex economic realities, courts and regulatory authorities frequently adopt purposive interpretation to achieve the broader objectives of the legislation. This paper critically examines the doctrine of purposive interpretation and its role in strengthening market regulation under the Competition Act, 2002. It analyses judicial approaches, landmark decisions, and the role of the Competition Commission of India in applying purposive interpretation while addressing issues such as abuse of dominant position, cartelization, anti-competitive agreements, and mergers. The paper further evaluates how purposive interpretation contributes to consumer welfare, economic efficiency, and market stability while also discussing challenges and criticisms associated with judicial discretion in economic laws.