- By: admin
- Date: 17 Apr 2019
Competition Law, 2002 was introduced, to prevent any effects or ill practices on the competition and hence intends to improve and sustain competition in the market to protect the interests of consumers and ensure freedom to trade by various participants in the market in India which were lacking in the existing Monopolistic and Restrictive Trade Practices Act, 1969 ("MRTP Act").
Competition Law and its Policies: Competition law and policy is defined as those Government measures that affect the behaviour of enterprises and the structure of the industry with a view to promote performance and maximize the benefit.
There are two components of such Government measures:-
Competition Policy: There are a set of policies, such as liberalized trade policy, relaxed FDI policy, deregulation, etc., that enhances competition in the markets.
Competition Law: To prevent anti-competitive practices with minimal intervention.
Objectives of Competition Act:
The first duty of the commission is to exercise control over the practices in competition, which are having an adverse effect on competition.
Section 3 of the Act states that enterprises, associations of enterprises or persons, including cartels, shall not begin with the agreements in respect of production, supply, storage, distribution, acquisition or control of goods or provision of services, which may cause an "appreciable adverse impact" on competition in India. Such agreements would consequently be considered void.
Section 4 of the Act says, "no enterprise shall abuse its dominant position". Principal position is the position of strength enjoyed by a business entrepreneur in the relevant market, which allows to operate independently of competitive forces in a general market or affect its consumers or the relevant market in its favour.
The Act is designed to control the operation and activities of "combinations", a term, which contemplates acquisition, mergers or amalgamations. A combination that exceeds the threshold limits specified in the Act in terms of assets, which causes or is likely to cause a significant unfavourable impact on competition within the appropriate market in India, can be examined by the Commission. Further, such combination, which causes or is likely to cause "appreciable adverse result" on competition, would be treated as void.
The commission also targets to include a healthy measure for promotion and sustenance of competition. It largely targets to prevent the interests of the consumers and give fair trade practices their due place. The Commission has also kept the target to place its opinion on the issues about competition predominating in India.
It would also act on a reference received from a statutory authority if the same has been undertaken by any law in order to promote competition and create awareness in public and inculcate training on majors issues in competition.
Composition of the Commission: Competition Of Commission Of India
The Commission consists of a Chairperson and not less than two and not more than six members who are appointed by the Central Government. The Chairperson and other members are whole time members of the commission. The Chairperson and every other Member of the commission is a person of ability, integrity, and standing and have special knowledge and professional experience of not less than fifteen years in international trade, economics, business, commerce, law, finance, accountancy, management, industry, public affair, or competition matters including.
Selection of the Committee: The Chairperson and other members of the Commission are appointed by the Central Government from a panel of names as recommended by the Selection Committee as below,
1. The Chief Justice of India or his nominee for Chairperson.
2. The Secretary of the Ministry of Corporate Affairs for the member
3. The Secretary in the Ministry of Law and Justice for the member
4. Two experts of repute who have special knowledge and professional experience in international trade, economics, business, commerce, law, finance, accountancy, management, industry, public affairs, or competition matters including competition law and policy for the member of the committee.
Functions of CCI: CCI shall prohibit anti-competitive agreements and misuse of dominance, and also regulate combinations (amalgamations or acquisitions) through a process of inquiry/investigation. It shall give an thought on competition issues on a proposal received from an authority under any law (statutory authority) or Central and State Government. It is mandatory for CCI to undertake competition advocacy, create awareness and impart training on competition issues.