| CCI – its establishment and composition
| Functions and powers of the CCI
| Leading case laws
Competition Commission of India is a body of the Government of India responsible for enforcing The Competition Act, 2002 throughout India and to prevent activities that have an adverse effect on competition in India. The objectives of the Act are sought to be achieved through the Competition Commission of India (CCI), which has been established by the Central Government with effect from 14 October 2003. CCI consists of a Chairperson and 6 Members appointed by the Central Government. Ashok Chawla is the current Chairperson of the CCI. It is the duty of the Commission to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade in the markets of India. The Commission is also required to give opinion on competition issues on a reference received from a statutory authority established under any law and to undertake competition advocacy, create public awareness and impart training on competition issues. The Competition Commission strives to:-
1. Make the markets work for the benefit and welfare of consumers. 2. Ensure fair and healthy competition in economic activities in the country for faster and inclusive growth and development of economy. 3. Implement competition policies with an aim to effectuate the most efficient utilization of economic resources. 4. Develop and nurture effective relations and interactions with sectoral regulators to ensure smooth alignment of sectoral regulatory laws in tandem with the competition law. 5. Effectively carry out competition advocacy and spread the information on benefits of competition among all stakeholders to establish and nurture competition culture in Indian economy.
Competition Act, 2002 (Act) in India, marks a landmark shift in approach towards regulating business in India. The Act brings India at par with UK, USA and EU in regulating free market. CCI is the enforcement agency for India’s Competition Act, 2002 which has replaced the Monopolies and Restrictive Trade Practices Act, 1969. It has more teeth and powers in addition to giving out cease and desist orders such as the power to impose penalties and issue injunctions. The mission of the CCI is to eliminate anticompetitive practices, such as cartels and abuse of dominance, as well as check anti-competitive mergers and takeovers to protect the interest of consumers and achieve economic efficiency. Apart from this, competition advocacy is another mandate on the CCI agenda. CCI has been actively probing sectors like real estate, entertainment, cement, petroleum, steel, travel industry, healthcare and education. At present, it is reportedly looking into 39 cases of violation of anti-competitive norms under the Competition Act, 2002. However, it has been poor in its policy advocacy functions. Though, seminars and workshops are also advocacy in the understanding of CCI. They can create awareness mainly, but promoting the competition culture needs much more including challenging policies and practices which harm the competition culture. During the time 2003-08 when it had just one Member without any enforcement powers, it was quite active in its policy advocacy in many cases, such as shipping, banking, post office issues etc. In 2011, CCI imposed a penalty of Rs. 55.5 crores on the National Stock Exchange for abusing its dominant position in the currency derivatives market. Similarly, it imposed a penalty of Rs 630 crores on DLF for abusing its dominant position by drafting one sided agreements with buyers. This case is pending before the Competition Appellate Tribunal. Just recently in 2012, CCI fined 11 cement firms Rs. 6300 crores for cartelisation....
Please join StudyMode to read the full document