Radhika Mittal (30) Llb308

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FUNCTIONS OF

COMPETITION
COMMISSION OF INDIA
SUBMITTED TO :
MS. SUNAINA MISHRA

SUBMITTED BY:
RADHIKA MITTAL
BA LLB 6A
03425503818
INTRODUCTION

• Competition Commission of India (CCI) is an important statutory


body. 
• The CCI acts as the competition regulator in India. The Commission
was established in 2003, although it became fully functional only by
2009.
• It aims at establishing a competitive environment in the Indian
economy through proactive engagement with all the stakeholders,
the government, and international jurisdiction.
OBJECTIVE OF CCI

• The objectives of the Commission are:


1.To prevent practices that harm the competition.
2.To promote and sustain competition in markets.
3.To protect the interests of consumers.
4.To ensure freedom of trade.
FUNCTIONS 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.
• Inquire into certain agreements and dominant position of enterprise– It
provides that the Commission may either suo moto or on receipt of any
information of alleged contravention of Section 3 (prohibits anti-competitive
agreements) may inquire into the same.
CONTD.

• Inquiry into combinations– Section 20 of the Act entrusts the Commission with the power
to inquire into any information relating to acquisition and determine whether such
combination or acquisition may have an appreciable adverse effect on competition (AAEC).
• Reference of an issue by a statutory authority to the Commission– 
Section 21 of the Act enumerates that in the course of a proceeding if any issue is raised
that any decision of a statutory authority will be in conflict with the provisions of the
Competition Act, 2002, the statutory authority shall make a reference in this regard to the
Commission.
• Reference by Commission– Section 21A of the Act provides that if in the course of
proceeding an issue is raised by any party that any decision taken by the Commission is in
contravention of the provisions of Competition Act, whose authority is entrusted to a
statutory authority then the Commission may make a reference in respect of the issue to
the statutory authority.
CONTD.

• Power to issue interim order– Section 33 of the Act empowers the


Commission to issue interim orders in cases of anti-competitive
agreements and abuse of dominant position, thereby temporarily
restraining any party from carrying on such an act.
• Competition Advocacy– Section 49 of the Act provides for
competition advocacy and enumerates that the Central or the State
Government may while formulating any policy on Competition or any
other matter may make reference to the Commission for its opinion on
possible effect of such policy on Competition. However, the opinion
given by the Commission is not binding on the Central Government
CONTD.

• The Competition Commission is India’s competition regulator, and an antitrust


watchdog for smaller organizations that are unable to defend themselves
against large corporations.
• CCI has the authority to notify organizations that sell to India if it feels they
may be negatively influencing competition in India’s domestic market.
• The Competition Act guarantees that no enterprise abuses their 'dominant
position' in a market through the control of supply, manipulating purchase
prices, or adopting practices that deny market access to other competing
firms.
• A foreign company seeking entry into India through an acquisition or
merger will have to abide by the country’s competition laws.
CONTD.

• The Competition Commission of India takes the following measures to


achieve its objectives:
• 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.
• Develop and nurture effective relations and interactions with sectoral regulators
to ensure smooth alignment of sectoral regulatory laws in tandem with the competition
law.
• Effectively carry out competition advocacy and spread the information on benefits of
competition among all stakeholders to establish and nurture competition culture in
Indian economy.
CASES

• The DLF case is one of the most renowned cases of CCI. The commission imposed a
fine against DLF for abusing its dominance and using unfair trade practices.
• The Competition Commission has dealt with some important high-profile cases over
the years. In the year 2018, The CCI imposed a fine of Rs135.86 crore on Google. It
claimed that Google has been using its dominant position as a search engine and
misusing its powers to create a search bias. The European Union also slammed 2.9
Billion dollars fine on Alphabet, the parent company of Google for abusing its
dominance.
•  In another important and controversial case, the CCI ordered probe into telecom
giants of the country- Idea, Vodafone and Airtel. Reliance Jio owner Mukesh Ambani
filed a complaint against the three for forming a cartel and denying Jio the POI
required for network connection, causing multiple call failures. The Cellular Operator
Association of India (COAI) was also under probe for encouraging and collaborating
in creation of this cartel.
CONCLUSION

• Healthy competition in the market is essential for innovation and


growth of the economy. Even though the Indian Economy has
moved forward from the protective stance it had over domestic
industries, yet harmful trade practices like creation of cartels and
monopolies go against public policy.
• It not only harms the small manufacturers but also the general
public as now they have to agree to the absurd terms and
conditions imposed by the huge players in the market. The rich get
richer at the expense of the poor, which goes against the goal of
equity of the economy. A body like CCI is essential to check such
practices

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