Competition Law being the new addition to the legal scenario, the E- Commerce industry faces the competition challenges in its development period. The collusion and market cartelization are becoming a daily practice. The paper focuses on these challenges and the law to protect these type of practices. With the growing importance of the E-commerce industry, collusion and wrongful trade practices in the industry causes the whole world to suffer as the control is shifting from the offline mode to the online mode. The role of the Information technology Act, 2000 and the international law perspective of this is to be observed too also the competition commission will play an important role in governing the market condition and bring stabilization in the same.