COMPETITION COMMISSION OF INDIA

COMPETITION COMMISSION OF INDIA

Subject: National Organizations

Context: The Competition Commission of India (CCI) has ordered an investigation against Tata Motors for alleged abuse of market dominance and anti-competitive practices.

Concept:

• Competition Commission of India is a statutory body responsible for enforcing the objectives of the Competition Act, 2002.
• CCI has been established by the Central Government with effect from 14th October 2003.
• Composition: A Chairperson and 6 Members appointed by the Central Government.
• Duty of the Commission:

To eliminate practices having adverse effects on competition.

Promote and sustain competition.

Protect the interests of consumers.

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 Act

• 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, 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.