Competition Commission of India

Why we need competition law?

  • After the liberalisation in 1991, the existing Restrictive Trade Practice Act 1969(MRTP Act) was not equipped to face the competition challenges of a liberal economy.
  • With globalisation Indian enterprises started to face a heat of competition from domestic and international players, called as a level playing field.
  • However, the market distorting pricing by some giant corporations make it difficult for small companies to thrive.
  • All these circumstances put together to constitute a new law to mitigate monopolies.
  • The competition law and the commission aims to develop a healthy competition in Indian market which supports free market.

Latest amendments

  • The provisions of the Competition Act, 2002 (“Act”) relating to the regulation of combinations as well as the Combination Regulations have been in force with effect from 1st June 2011.
  • A key change brought about by the present amendments is that the parties to combinations can now submit remedies voluntarily in response to the notice issued under Section 29(1) of the Act.
  • If such remedies are considered sufficient to address the perceived competition harm, the combination can be approved. This amendment is expected to expedite disposal of such combination cases.
  • In another significant amendment, where the notice is found to exhibit significant information gaps, parties to combinations are allowed to withdraw the notice and re-file the same. With this amendment, the parties could address the deficiencies without facing an invalidation by CCI. Further, fee already paid in respect of such notice shall be adjusted against the fee payable in respect of new notice, if the re-filing is done within a period of 3 months.
  • Apart from these, certain consequential and other clarification changes have also been made in the Combination Regulations.

Competition Commission of India

  • The Competition Commission of India (CCI) was established under the Competition Act, 2002.
  • It is established for the administration, implementation and enforcement of the Act, and was duly constituted in March 2009.
  • Chairman and members are appointed by the central government.

Objectives of the Commission

  • Make the markets work for the benefit and welfare of consumer.
  • To prevent practices having adverse effect on competition.
  • To promote and sustain competition in markets.
  • To protect the interests of consumers.
  • To ensure freedom of trade.
  • Implement competition policies with an aim to effectuate the most efficient utilization of economic resources.
  • Develop and nurture effective relations and interactions with sectoral regulators to ensure smooth alignment of sectoral regulatory laws in tandem with the competition law.
  • Effectively carry out competition advocacy and spread the information.

Functions of the Commission

  • 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.

Location: Thiruvananthapuram, Kerala, India

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