The Competition Commission of India (CCI) marked its 12th Annual Day on 20th May. With its inception in 2003 and becoming fully operational in 2009, the CCI has been playing a significant role in regulating India’s competitive economic environment under the framework of the Competition Act, 2002. This article delves into the establishment, composition, and multifaceted role of the CCI.
Establishing the Statutory Body: The Inception of CCI
The Competition Commission of India is a statutory body responsible for enforcing the objectives of the Competition Act, 2002. Initiated by the Central Government on 14th October 2003, it started its full-fledged operations on 20th May, 2009.
Composition of CCI: A Committee of Experts at the Helm
The central management of the CCI includes a Chairperson and six Members. Their appointments are under the direct jurisdiction of the Central Government.
Formation of CCI: The Legal Incorporation under the Competition Act
The establishment of the CCI came under the provisions of the amended Competition Act, 2007, which had initially initiated the Competition Act, 2002. Its formation also led to the inception of the Competition Appellate Tribunal. However, the National Company Law Appellate Tribunal (NCLAT) replaced this Competition Appellate Tribunal (COMPAT) in 2017.
The Guiding Role of CCI: Its Functions and Measures
The primary objective of the CCI is to eliminate practices having adverse effects on competition, promote and sustain competition, protect consumer interests, and ensure freedom of trade in the markets of India. To fulfil this mandate, the CCI undertakes several specific steps:
1. Consumer welfare: The Commission aims to make markets function for the benefit and welfare of consumers.
2. Ensure fair competition: It strives to maintain healthy competition in economic activities for accelerated, inclusive growth and development of the economy.
3. Efficient use of resources: With the aim of effectuating the most efficient utilization of economic resources, it implements competition policies.
4. Harmony with sectoral regulators: It works to develop and nurture effective relations with sectoral regulators to ensure smooth alignment of sectoral regulatory laws with the competition law.
5. Advocacy: The body actively carries out competition advocacy and disseminates information on the benefits of competition among all stakeholders.
The Essential Need for CCI: Why It Matters
The CCI plays an essential role in promoting free enterprise as competition is crucial for preserving economic freedom and our free enterprise system. It protects against market distortions that can be caused by anti-competitive activities such as cartels and abuse of dominance, which can adversely impact economic efficiency and consumer welfare. It also ensures the viability of domestic industries in a globalized world, carefully balancing this with reaping the benefits of increased foreign competition and investment. Thus, the CCI plays a crucial role in shaping India’s competitive business landscape.
