The Competition Commission of India (CCI) is a statutory body that was established through the Competition Act of 2002 to ensure proper enforcement of competition laws and promotion of fair market practices in India. Headquartered in New Delhi, CCI aims to prevent anti-competitive practices, such as cartelization and abuse of dominance, while fostering a competitive environment which is conducive to innovation, efficiency, and consumer welfare.
It is vested with the power to investigate cases of anti-competitive behaviour, review mergers and acquisitions, and advocate for competition-friendly policies. Through its regulatory oversight and enforcement actions, CCI contributes to ensuring a level playing field and enhancing economic growth in India.
Role:
The body plays a crucial role in fostering fair competition and preventing anti-competitive practices in the Indian market. It operates independently, free from government or external influences and ensures transparency, thus promoting accountability and trust in the regulatory process. It takes a proactive stance in enforcing competition laws and advocating for fair competition. It actively investigates instances of anti-competitive behaviour, reviews mergers and acquisitions, and engages in advocacy efforts to raise awareness about competition-related issues.
Objective:
The Competition Commission of India (CCI) primarily aims at ensuring fair competition in the Indian market. It strives to create a competitive market where businesses compete fairly based on merit, avoiding practices like collusion, price-fixing, or misusing dominant market positions. By encouraging competition, the CCI aims to safeguard consumer interests. It works towards preventing activities like cartels, bid-rigging, and other unfair trade practices that could harm competition and consumers. It helps in improving economic efficiency by ensuring fair competition for all market participants.
Timeline:
The following is a concise timeline outlining significant events in the evolution of the Competition Commission of India (CCI): -
In line with the Raghavan Committee Report, the Monopolies and Restrictive Trade Practices Act of 1969 (MRTP Act) was repealed and the Competition Act, of 2002 was enacted.
In 2002, the Indian Parliament passed the Competition Act, 2002 for fostering fair competition and deterring anti-competitive practices.
On January 13, 2003, the Competition Act, 2002 received presidential approval.
Starting from May 20, 2003, certain provisions of the Competition Act, of 2002 became effective, paving the way for the formation of the CCI.
By May 14, 2009, the CCI became fully operational following the notification of provisions concerning its setup, functions, and authority.
Structure:
The Competition Commission of India (CCI) has a well-defined structure which consists of the following key components: -
Commission Members: The decision-making body of the CCI is the Commission, which usually includes a Chairperson and up to six members appointed by the Central Government. These members are generally experts in economics, law, business, or public administration.
Director General's Office: The investigative arm of the CCI is the Office of the Director General (DG), which is led by the Director General. It is responsible for the conduction of inquiries and investigations into potential violations of competition laws.
Secretary: The Secretary serves as the administrative head of the CCI overseeing the daily operations of the Commission. Its role is crucial for the facilitation of communication between the Commission, the DG's office, and other CCI departments.
Divisions/Departments: The CCI consists of various divisions or departments tasked with specific functions such as mergers and acquisitions, advocacy, legal affairs, economics, and research. These divisions collaborate in supporting the Commission's goals and executing its functions efficiently.
Advisory Committees: For addressing specialised competition-related issues, the CCI may form advisory committees or expert groups which may comprise industry, academia, consumer organisations, and other stakeholders.
Overall, the organisational structure of the CCI is designed to effectively fulfil its mandate of enforcing competition laws, fostering fair competition, and safeguarding consumer interests in the Indian market.
Functions:
Tending to Anti-Competitive Behaviour: The CCI examines complaints and cases related to anti-competitive practices like collaborations, price-fixing, bid-rigging, and unjustifiable exchange homes.
Advancing Competition Backing: It conducts promotional activities to build a competitive environment among businesses, buyers, policymakers, and other partners. It organises mindfulness programs, workshops, and courses for teaching partners on the benefits of reasonable competition.
Conducting Inquire about and Investigation: The CCI performs investigations and examinations on different viewpoints of competition arrangement, advertisement flow, and emerging patterns.
Giving Direction and Admonitory Administrations: It offers direction and admonitory administrations to businesses, exchange affiliations, and other organisations on complying with competition laws.
Directing Combination Exchanges: The CCI controls combination exchanges, such as mergers, acquisitions, and amalgamations, to prevent negative impacts on competition. It assesses the potential effects of these transactions on competition and consumer welfare.
Important facts
The Competition Commission of India (CCI) was established under the Competition Act, of 2002, receiving presidential assent on January 13, 2003.
It became fully operational on May 14, 2009, following the notification of provisions regarding its establishment, functions, and powers.
Based in New Delhi, India, the CCI has jurisdiction across the entire country, with the authority to investigate and adjudicate on competition-related matters in various sectors.
Mrs Ravneet Kaur is the current Chairperson of the Competition Commission of India and was appointed as such on 23rd May 2023.
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