COMPETITION COMMISSION OF INDIA
- The Competition Commission of India (CCI) is a regulatory authority established in India to promote and protect fair competition in the marketplace.
- It was established under the Competition Act, 2002, and became fully functional in 2009.
- The primary objective of the CCI is to prevent anti-competitive practices, ensure a level playing field for businesses, and promote consumer welfare
- The Competition Commission of India (within the Ministry of Corporate Affairs) has been established to enforce the competition law under the Competition Act, 2002.
- It should be noted that on the recommendations of Raghavan committee, the Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act) was repealed and replaced by the Competition Act, 2002
- The Commission consists of a Chairperson and not more than 6 Members appointed by the Central Government
- It is the statutory duty of the Commission to eliminate practices having an adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade carried on by other participants, in markets in India as provided in the Preamble as well as Section 18 of the Act.
- The Commission is also mandated to give its opinion on competition issues to government or statutory authority and to undertake competition advocacy for creating awareness of competition law.
- Advocacy is at the core of effective competition regulation. Competition Commission of India (CCI), which has been entrusted with implementation of law, has always believed in complementing robust enforcement with facilitative advocacy. It is a quasi-judicial body.
Here are some key functions and responsibilities of the Competition Commission of India:
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Competition Advocacy: The CCI engages in advocacy and education activities to promote competition awareness among businesses, government agencies, and the public.
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Antitrust Enforcement: The CCI investigates and takes action against anti-competitive agreements, abuse of dominance by companies, and anti-competitive mergers and acquisitions. It can impose penalties and remedies on entities found to be in violation of competition laws.
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Merger Control: The CCI reviews and approves or disapproves mergers, acquisitions, and combinations that may have an adverse impact on competition in the Indian market. It assesses whether these transactions are likely to cause a substantial lessening of competition.
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Market Studies and Research: The CCI conducts studies and research to understand market dynamics, competition issues, and emerging trends. This information helps in formulating policies and recommendations to improve competition.
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Competition Advocacy: The commission engages in advocacy efforts to promote competition principles and practices among businesses, government agencies, and the public.
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Consumer Protection: While primarily focused on promoting competition, the CCI also indirectly promotes consumer welfare by ensuring that markets remain competitive and that consumers have choices and access to fair prices.
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Regulation of Anti-Competitive Practices: The CCI addresses practices such as price-fixing, bid rigging, and abuse of market power that can harm competition and consumers.
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Legal Proceedings: The CCI has the authority to conduct investigations, hold hearings, and pass orders. Its decisions can be appealed to higher courts in India.
- The Competition Act, 2002, as amended by the Competition (Amendment) Act, 2007, follows the philosophy of modern competition laws.
- The Act prohibits anti-competitive agreements, and abuse of dominant position by enterprises and regulates combinations (acquisition, acquiring of control and M&A), which causes or likely to cause an appreciable adverse effect on competition within India
- In accordance with the provisions of the Amendment Act, the Competition Commission of India and the Competition Appellate Tribunal have been established
- The government of India replaced Competition Appellate Tribunal (COMPAT) with the National Company Law Appellate Tribunal (NCLAT) in 2017
- The provisions of the Competition Act relating to anti-competitive agreements and abuse of dominant position were notified on May 20, 2009
| Competition is the best means of ensuring that the ‘Common Man’ or ‘Aam Aadmi’ has access to the broadest range of goods and services at the most competitive prices. With increased competition, producers will have maximum incentive to innovate and specialize. This would result in reduced costs and wider choice to consumers. A fair competition in market is essential to achieve this objective. Our goal is to create and sustain fair competition in the economy that will provide a ‘level playing field’ to the producers and make the markets work for the welfare of the consumers |
The International Competition Network, which is a global body dedicated to enforcing competition law, has a simpler definition. The three common components of a cartel are:
- an agreement;
- between competitors;
- to restrict competition.
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For Prelims: Statutory board, Constitutional body
For Mains: 1.Discuss the role and functions of the Competition Commission of India (CCI) in promoting and ensuring fair competition in the Indian market
2.Examine the challenges and limitations faced by the Competition Commission of India (CCI) in effectively regulating and promoting competition in the digital economy
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Previous year Questions
1. Competition Commission of India is which kind of body? (RSMSSB Sanganak 2018)
A. Statutory body
B. Constitutional.
C. Single Member
D. Private
Answer (A)
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