8.57. Competition Commission Of India Flashcards
Brief note on Competition Act, 2002:
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 Merger and acquisition), which causes or likely to cause an appreciable adverse effect on competition within India.
The objectives of the Act are sought to be achieved through the Competition Commission of India (CCI), which has been established by the Central Government with effect from 14 October 2003.
What is Competition Commission of India?
Competition Commission of India is a body of the Government of India responsible for enforcing “THE COMPETITION ACT, 2002,” throughout India.
It was preceded by the Monopolies and Restrictive Trade Practices Commission.
Its mandate is to PREVENT activities that have an ADVERSE EFFECT ON COMPETITION IN INDIA.
It was established on 14 October 2003. It became fully functional in May 2009.
The Commission comprises a Chairperson and six members, as appointed by the central govt. Of India.
What are the objectives of the CCI?
An Act to provide, keeping in view of the economic development of the country, for the establishment of a Commission to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets, in India, and for matters connected therewith or incidental thereto.
Notable cases of CCI:
- In 2013: CCI imposed a penalty of 522 million (US$8.8 million) on the Board of Control for Cricket in India (BCCI) for misusing its dominant position.
Case:
The CCI found that IPL team ownership agreements were unfair and discriminatory, and that the terms of the IPL franchise agreements were loaded in favour of BCCI and franchises had no say in the terms of the contract.
The CCI ordered BCCI to “cease and desist” from any practice in future denying market access to potential competitors and not use its regulatory powers in deciding matters relating to its commercial activities.
- In 2014, CCI imposed a fine of Rs. 1 Crore upon Google for failure to comply with the directions given by the Director General(DG)seeking information and documents.
