Ankita Nanda
C_04
The Competition Commission of India (CCI) is a statutory body of the Indian government that
serves as the country's competition regulator. It was formed on October 14, 2003, but only
became fully operational in May 2009, under the leadership of Mr. Dhanendra Kumar. The
commission's executives are Mr. Ashok Gupta and Mr. PK Singh, who are both situated in
New Delhi. 1
The competition act's major mission is to guarantee that the Indian markets retain an unbiased,
healthy, and fair competitive environment, and it has been given the authority to do so and to
sanction any activities that interfere with its obligations.
Competition is a necessary component of a market's proper operation. It helps consumers by
promoting innovation, efficiency, and a wider range of options, allowing customers to purchase
products and services at a fair cost and contributing to our country's competitiveness.
Competition policy aims to promote and strengthen the competitive process while also ensuring
that consumers value it. In practice, competition law is used to attain these goals. Competition,
if weakened in any manner, may have a negative impact on the community; the competition
policy monitors this as well.
Origin of Competition Commission of India
The developing world tried to put anti-competitive behaviour of private parties and businesses
under the GATT trade system's discipline in the late 1950s and early 1960s. They were unable
1
Competition Commission of India, The Wikipedia
[Link]
1
Ankita Nanda
C_04
to do so, therefore they turned to UNESCO/UNCTAD to organize a conference on restrictive
business practices (RBP), which culminated in the voluntary RBP code in 1979-1980.
Their subsequent attempts, at each review conference, to give it some teeth and persuade the
industrialised nations to "cooperate" and assist developing countries in addressing anti-
competitive impacts in their markets originating elsewhere were thwarted.
Few developing country members mentioned the issue of competition policy and restrictive
business practises (RBPs) of companies as one of the issues that needed to be addressed in a
future WTO trade agenda at the GATT Ministerial Conference in Marrakesh in 1994.
In December 1996, the World Trade Organization's Ministerial Conference resolved to form a
working group to "examine the relationship between trade and competition policy." Given the
negotiation history and post-conference pronouncements on this topic, "competition policy"
has varied interpretations for different parties in the WTO framework.
The US and EU want the south to enact "effective" local anti-monopoly legislation so that their
businesses may get greater market access; Hong Kong wants to look into WTO rules in a
"globalising economy," and developing nations support them. Japan and Korea want to look
into anti-competitive trade measures, while several Asia-Pacific nations in the south seek to
bring in TNCs' restrictive business practices.
The Competition Act, 2002
The Competition Act was passed in 2002, and the Competition (Amendment) Act of 2007
modified it and hence, it is based on the idea of present competition rules.
• The Act bans anti-competitive agreements, enterprise abuse of dominant position, and
mergers and acquisitions (acquisition, control, and M&A) that have or are likely to have
a significant detrimental effect on competition in India.
• The Competition Commission of India and the Competition Appellate Tribunal have
been created under the terms of the Amendment Act.
• In 2017, the Competition Appellate Tribunal (COMPAT) was superseded by the
National Company Law Appellate Tribunal (NCLAT).2
2
Competition Commission of India (CCI) – An Overview of Functions
[Link]
2
Ankita Nanda
C_04
Composition of Competition Commission of India
The Chairperson and six members of the CCI are selected by the Indian government. The
following individuals make up the commission:
• Chairperson
• Member 1
• Member 2
• Member 3
• Member 4
• Member 5
• Member 6
The commission is a quasi-judicial organization that provides advice to statutory agencies and
handles various matters. The Chairperson, as well as the other members, will be full-time
members.
Eligibility of member: The Chairperson and each other Member shall be persons of ability,
integrity, and standing who have served as, or are qualified to serve as, a judge of a High Court,
or who have special knowledge of, and professional experience of not less than fifteen years in
international trade, economics, business, commerce, law, finance, accounting, management,
industry, public affairs, and or any other subject that, in the opinion of the Central Government,
may be useful to the Commission.
All CCI members have a five-year term of office, or until they reach the age of 65(whichever
is early). However, members do have an option of re-appointment after their tenure is over. 3
The Chairperson and other members of CCI are prohibited from seeking new work for a period
of two years following their departure from the Commission. This limitation, however, does
not apply to any job with the federal or state governments.
Framework of CCI (to be added after the composition of CCI)
The Competition Act, like other competition laws across the world, is written in broad terms
and is not confined to regulating private parties' economic activities. Anticompetitive
3
Competition Commission of India (CCI) – An Overview of Functions
[Link]
3
Ankita Nanda
C_04
agreements, abuse of dominant position, and combinations are all prohibited or regulated by
the Competition Act.
The Commission is ideally equipped to judge disputes before it on the basis of material adduced
by parties and application of the rules of evidential proof under the Evidence Act since it is
properly entitled to receive documents and testimonial as evidence under the Competition Act.
Functions and roles of CCI
• It is the CCI's responsibility to remove behaviours that are anti-competitive.
• Its mission is to foster and preserve competition while safeguarding consumer interests.
• In the Indian market, the CCI protects trade freedom.
• When a statutory authority created by law asks the Commission for an opinion on a
competition matter, the Commission responds.
• It's also necessary to engage in competition advocacy.
• The CCI also raises public awareness about competitive concerns and provides training
on the subject.4
• In addition, under the Amendment Act of 2009, a body called the Competition
Appellate Tribuna was established, which provides for a final appeal to the Supreme
Court of India.
• As a result, CCI has complete authority to carry out the specified tasks.
4
Competition Commission of India (CCI)
[Link]
4
Ankita Nanda
C_04
Objectives of CCI
• To encourage firms to be fair, competitive, and inventive by promoting and then
maintaining an enabling competition culture via engagement and enforcement.
• To improve consumer wellbeing
• To help the economy grow.
• Through proactive interaction with all stakeholders, including consumers, industry,
government, and foreign jurisdictions, the Competition Commission of India strives to
build a healthy competitive environment.
Need of CCI
• Encourage free enterprise: Competition rules have been dubbed the "Magna Carta of
free enterprise." Competition is critical to the survival of our free business system and
economic freedom.
• Protect against market distortions: Competition law is necessary because markets
can experience failures and distortions, and various players can engage in
anticompetitive behaviour such as cartels, abuse of dominance, and other practices that
have a negative impact on economic efficiency and consumer welfare.
• Promotes local industry: In an era when economies are transitioning from closed to
open economies, a competent competition commission is critical to ensuring the
sustainability of domestic sectors while also reaping the benefits of increasing foreign
investment and competition.
Judgement of CCI
• In June 2012, CCI fined 11 cement businesses a total of
63.07 billion (US$910 million) for cartelization.
Cement firms allegedly gathered on a regular basis to
establish pricing, control market share, and hold back
supplies, resulting in unlawful profits.
• Following a complaint made by Reliance Jio regarding
cartelization by competitors Bharti Airtel, Vodafone
India, and Idea cellular, the CCI ordered an
investigation into the operation of the Cellular
Operators Association of India (COAI).
5
Ankita Nanda
C_04
• The EU has launched an antitrust investigation into Google for abusing its dominating
position in the Android market to stifle competition. This investigation was prompted
by the findings of a similar case in the EU, in which Google was found guilty and
punished.
• In 2019, CCI sent letters to phone manufacturers inquiring about the terms and
circumstances of their Google agreement.
• This is to see if Google has placed any limits on their use of the company's applications
during the last eight years, starting in 2011.
• In 2014, the CCI fined Google ten million dollars for failing to cooperate with the
Director General's (DG) requests for information and documents.
• Three Airlines was fined 258 crores by the CCI in 2015.
• The three airlines were fined by the Competition Commission of India (CCI) for
cartelization in calculating the fuel surcharge for air freight. 5
Business Perspective
• Business operations in India need a thorough understanding of the numerous rules and
regulations, as well as their execution. Market competition is a significant problem that
must be carefully addressed. It is critical for businesses to understand that, while
competition generates success, flourishing and striving must be an ongoing effort.
• Business operations in India need a thorough understanding of the numerous rules and
regulations, as well as their execution. Market competition is a significant problem that
must be carefully addressed. It is critical for businesses to understand that, while
competition generates success, flourishing and striving must be an ongoing effort.
• Any discussions in which a subject is addressed that might cause concerns under
competition law should be avoided.
• Appointment of an Ombudsman to provide advice on competition law in order to avoid
any legal problems. Communication difficulties, while seemingly little, can have a
significant influence when it comes to issues of misuse of dominating position. 6
5
Competition Commission of India (CCI)
[Link]
6
Competition Commission of India (CCI) – An Overview of Functions
[Link]
