SEM V Competition Law – Unit IV Class Notes

Table of Contents

Overview:

The Competition Commission of India (CCI) is the principal regulatory authority responsible for enforcing the Competition Act, 2002. It was established to promote and sustain competition in markets, prevent practices that have an adverse effect on competition, and protect consumer interests.

Promoting Competition:
- Encouraging competition in the Indian market by preventing anti-competitive practices and ensuring fair play among businesses.
Consumer Protection:
- Safeguarding consumer interests by ensuring that market practices are not detrimental to the consumers’ welfare.
Market Studies and Advocacy:
- Conducting studies and research on market conditions and competition issues to advise the government on policy matters.
- Promoting competition awareness among businesses, consumers, and the public.

Investigative Powers:
- Power to Investigate: The CCI can investigate alleged violations of the Competition Act, including anti-competitive agreements and abuse of dominant position.
- Search and Seizure: It has the authority to conduct search and seizure operations (dawn raids) to collect evidence of anti-competitive practices.
- Summoning Witnesses: The CCI can summon witnesses, call for documents, and examine parties involved in investigations.
Adjudicative Powers:
- Passing Orders: After conducting investigations, the CCI can issue orders to cease and desist from anti-competitive practices and impose penalties.
- Approval of Combinations: The CCI reviews and approves or disapproves combinations (mergers, acquisitions, and amalgamations) that may affect competition.
Penal Powers:
- Fines: The CCI can impose monetary fines on companies found guilty of anti-competitive practices.
- Cease and Desist Orders: It can direct companies to stop engaging in certain practices that are found to be in violation of the Act.

Regulation of Anti-Competitive Practices:
- Anti-Competitive Agreements: The CCI examines and regulates agreements that may restrict or distort competition, such as cartels and restrictive trade practices.
- Abuse of Dominant Position: It investigates and takes action against firms that abuse their dominant position in the market.
Review of Combinations:
- Merger Control: The CCI reviews proposed mergers, acquisitions, and amalgamations to ensure they do not adversely affect competition. It evaluates whether these combinations will create or strengthen market dominance or reduce competition substantially.
Consumer Protection:
- Redressal: It addresses complaints and grievances from consumers affected by anti-competitive practices and unfair trade practices.
Advisory Role:
- Policy Recommendations: The CCI advises the government on competition policy and legislative changes to enhance market competition.
- Market Studies: Conducts research and publishes reports on market conditions, competition issues, and trends.
Education and Advocacy:
- Awareness Campaigns: Promotes awareness about competition law among businesses, consumers, and the general public.
- Training Programs: Organizes training programs, workshops, and seminars to educate stakeholders about competition law and practices.

Chairperson:
- The CCI is headed by a Chairperson who oversees the functioning of the Commission.
Members:
- The CCI consists of several Members appointed by the Central Government. Each member has specific expertise and contributes to the Commission’s work.
Director General (DG):
- The DG is responsible for conducting investigations and collecting evidence as per the directions of the CCI.

Inquiries and Investigations:
- The CCI conducts inquiries based on complaints or suo moto and investigates practices that may contravene the Competition Act.
Orders and Directions:
- After investigations, the CCI issues orders and directions to ensure compliance with the Act and rectify anti-competitive behavior.
Appeals and Reviews:
- Parties aggrieved by the CCI’s orders can appeal to the Competition Appellate Tribunal (COMPAT) and subsequently to higher courts.