The competition Act 2010 was upheld by the parliament and will come to force in 2012. This is a law that will remove appreciate three main pillars. they are there won’t be any more anti competitive agreements, there won’t be any abuse of the dominant positions, and the dominant ones will not have any ruling in the case of the mergers and acquisitions that are anti competitive in nature. The Act though may seem good initially is not favorable to Air Asia as it will increase competition in the market. This would mean that there won’t be any predatory pricing that is allowed (Chen, 2008).