COMPETITION COMMISSION OF INDIA

COMPETITION COMMISSION OF INDIA

TOPIC: Economy

Context- Competition Commission on Wednesday said Supreme Court has dismissed a petition filed by tyre companies wherein they had challenged the regulator’s order imposing penalties totalling over Rs 1,788 crore on them for anti-competitive practices.

Concept-

• In August 2018, CCI had imposed a fine on Apollo Tyres, MRF, CEAT, Birla Tyres, JK Tyre and Industries and Automotive Tyre Manufacturers Association (ATMA).
• They were found to have violated Section 3 of the Competition Act during 2011-2012. The section prohibits anti-competitive agreements.
• The regulator had found that the companies and the association indulged in cartelisation by acting in concert to increase the prices of cross ply/bias tyres variants sold by each of them in the replacement market and to limit and control production and supply in the market.

About Competition Commission of India (CCI)-

• Competition Commission of India (CCI) is a statutory body of the Government of India responsible for enforcing the Competition Act, 2002, it was duly constituted in March 2009.
• The Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act) was repealed and replaced by the Competition Act, 2002, on the recommendations of Raghavan committee.
• Competition Commission of India aims to establish a robust competitive environment through proactive engagement with all stakeholders, including consumers, industry, government and international jurisdictions.

Composition of CCI- The Commission consists of

• One Chairperson and six Members as per the Competition Act who shall be appointed by the Central Government.
• The commission is a quasi-judicial body which gives opinions to statutory authorities and also deals with other cases.
• The Chairperson and other Members shall be whole-time Members.
• Eligibility of members:
  • The Chairperson and every other Member shall be a person of ability, integrity and standing and who, has been, or is qualified to be a judge of a High Court, or, has special knowledge of, and professional experience of not less than fifteen years in international trade, economics, business, commerce, law, finance, accountancy, management, industry, public affairs, administration or in any other matter which, in the opinion of the Central Government, may be useful to the Commission.

Functions and Role of CCI-

• 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.
• 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.
• Consumer welfare: To make the markets work for the benefit and welfare of consumers.
• Ensure fair and healthy competition in economic activities in the country for faster and inclusive growth and development of the economy.
• Implement competition policies with an aim to effectuate the most efficient utilization of economic resources.