This Long article has been written by Vaibhav Yadav and co- authored by Shivam Pandey. Vaibhav and Shivam are law students Gujarat National Law University.
ABSTRACT
In an increasingly fractured global economic order, governments are reasserting their influence over markets through tariffs, subsidies, and other forms of trade protectionism. This resurgence of state-driven economic strategies presents a critical challenge for competition law regimes traditionally designed to regulate private anti-competitive behavior. The complex interplay between state-imposed trade barriers and market competition raises important questions about the scope and limits of antitrust jurisdiction in addressing market distortions originating not from firms, but from states themselves. This paper investigates the evolving dynamics between competition law and protectionist policies, focusing on how tariffs and subsidies impact market efficiency, consumer welfare, and the competitive neutrality of firms operating in transnational markets. Drawing on recent case studies, including WTO disputes and cross-border antitrust investigations, the article critically examines whether current competition law frameworks—both domestic and supranational—are adequately equipped to address these state-induced distortions. It also explores the legal and jurisdictional limits faced by antitrust authorities in regulating conduct that is sanctioned or incentivized by sovereign governments. By mapping the blurred boundary between legitimate state policy and market manipulation, this research proposes a reconceptualization of competition law that integrates principles of global economic governance, fairness, and policy coherence. The paper ultimately advocates for a more nuanced, hybrid regulatory approach that respects state sovereignty while safeguarding competitive markets in a multipolar trade environment.
