The Competition Commission of India (CCI) has introduced draft regulations aimed at overseeing high-value mergers and acquisitions (M&A), particularly in the tech sector, within the jurisdiction of the antitrust regulator. Established in 2009 under the Competition Act of 2002, CCI’s primary mission is to cultivate fair competition in the Indian economy, ensuring a level playing field for producers and consumer welfare. CCI’s mandate includes prohibiting anti-competitive agreements, preventing abuse of dominant market positions by enterprises, and regulating M&A deals beyond a specified threshold. The commission acts as a quasi-judicial body, led by a chairperson and six additional members, all appointed by the Central Government, with its headquarters in New Delhi.
Facts/Terms for UPSC Prelims
- Competition Commission of India (CCI): CCI is a statutory body formed under the Competition Act, 2002, responsible for promoting fair competition and safeguarding consumer interests in India.
- Antitrust Regulator: An organization or government body responsible for preventing monopolistic practices and ensuring a competitive market environment.
- Merger and Acquisition (M&A): The process of combining two or more companies through various financial transactions, such as mergers (joining two companies to form a new entity) or acquisitions (one company acquiring another).
- Dominant Position: Refers to a situation where a company holds significant power or control in a particular market, potentially leading to anti-competitive behavior.
- Level Playing Field: A fair and equitable market environment where all participants have equal opportunities to compete without unfair advantages or disadvantages. In this context, it means creating conditions for fair competition in the Indian economy.
