The Competition Commission of India (CCI) is a statutory body established under the Competition Act, 2002, to enforce and promote competition in markets, prevent anti-competitive practices, and protect the interests of consumers.
- Establishment:
- The Competition Commission of India was established in 2003 under the provisions of the Competition Act, 2002, which replaced the erstwhile Monopolies and Restrictive Trade Practices (MRTP) Act, 1969.
- It operates as an independent quasi-judicial body tasked with regulating competition in the Indian market.
- Mandate:
- The primary mandate of the CCI is to prevent anti-competitive agreements, abuse of dominant position, and regulate combinations (mergers and acquisitions) that may have an adverse impact on competition.
- It aims to promote and sustain competition in markets, enhance consumer welfare, and foster economic efficiency and innovation.
- Functions:
- Competition Advocacy: CCI engages in advocacy efforts to raise awareness about the benefits of competition and encourage a competitive culture among businesses, policymakers, and stakeholders.
- Regulation of Anti-Competitive Practices: CCI investigates and takes action against anti-competitive agreements, including cartels, price-fixing, bid-rigging, and market allocation schemes.
- Prevention of Abuse of Dominant Position: CCI examines cases of abuse of dominance by enterprises with substantial market power, such as predatory pricing, refusal to deal, and discriminatory practices.
- Regulation of Combinations: CCI scrutinizes mergers, acquisitions, amalgamations, and combinations that meet the prescribed thresholds to ensure that they do not result in a significant adverse impact on competition in the market.
- Market Studies and Research: CCI conducts market studies, research, and analysis to assess competition dynamics, market structure, and consumer behavior across different sectors of the economy.
- Advisory Role: CCI provides advisory opinions and guidance to businesses, trade associations, and government agencies on competition-related matters, including compliance with competition laws and regulations.
- Structure:
- CCI is headed by a Chairperson who is supported by a minimum of two and a maximum of six members, including officials with expertise in law, economics, finance, and business management.
- The Chairperson and members are appointed by the Central Government based on their qualifications and experience in competition law and economics.
- CCI operates through its headquarters in New Delhi and regional offices located in various states and Union territories of India.
- Enforcement Powers:
- CCI has extensive investigative and enforcement powers to gather evidence, conduct inquiries, summon witnesses, and issue orders and directions to parties involved in anti-competitive practices or combinations.
- It can impose penalties, fines, and corrective measures on entities found to have violated competition laws, including the imposition of cease-and-desist orders and disgorgement of profits.
- Legal Framework:
- CCI operates under the legal framework provided by the Competition Act, 2002, and related regulations, guidelines, and precedents.
- The Act empowers CCI to regulate competition in markets, prevent anti-competitive practices, and ensure a level playing field for businesses.
Overall, the Competition Commission of India plays a crucial role in promoting fair competition, protecting consumer interests, and fostering economic efficiency and innovation in the Indian market through effective enforcement and regulation of competition laws and policies.
