Competition Commission of India

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Competition Commission of India is a body of the Government of India responsible for enforcing The Competition Act, 2002 throughout India and to prevent activities that have an adverse effect on competition in India. It was established on 14 October 2003. It became fully functional in May 2009.[2][3]

Competition Commission of India

Formed Preceding Agency Jurisdiction Agency executive

[1]

Agency overview May 2009[2][3] Monopolies and Restrictive Trade Practices Commission[4] India Ashok Chawla Website cci.gov.in (http://cci.gov.in)

Contents
1 The Competition Act, 2002 2 Competition Commission of India 3 Objectives 3.1 Preamble to the Competition Act 4 Composition 5 Notable cases 6 References 7 External links

Headquarters New Delhi

The Competition Act, 2002

Main article: The Competition Act, 2002 The Competition Act, 2002, as amended by the Competition (Amendment) Act, 2007, follows the philosophy of modern competition laws. The Act prohibits anti-competitive agreements, abuse of dominant position by enterprises and regulates combinations (acquisition, acquiring of control and Merger and acquisition), which causes or likely to cause an appreciable adverse effect on competition within India.[5]

Competition Commission of India

The objectives of the Act are sought to be achieved through the Competition Commission of India (CCI), which has been established by the Central Government with effect from 14 October 2003. CCI consists of a Chairperson and 6 Members appointed by the Central Government. It is the duty of the Commission 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.[5] The Commission is also required 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.[5]

Objectives

Preamble to the Competition Act

An Act to provide, keeping in view of the economic development of the country, for the establishment of a Commission to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets, in India, and for matters connected therewith or incidental thereto.[5] To achieve its objectives, the Competition Commission of India endeavours to do the following: 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 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.
"The main objective of competition law is to promote economic efficiency using competition as one of the means of assisting the creation of market responsive to consumer preferences. The advantages of perfect competition are three-fold: allocative efficiency, which ensures the effective allocation of resources, productive efficiency, which ensures that costs of production are kept at a minimum and dynamic efficiency, which promotes innovative practices." Supreme Court of India Judgment in Civil Appeal No. 7999 of 2010 pronounced on 9 September 2010

Composition
The Commission comprises a Chairperson and six members. Ashok Chawla is the current Chairperson of the CCI.[6] The members of the Competition Commission of India are: 1. 2. 3. 4. 5. 6. H.C. Gupta R. Prasad S.N. Dhingra Geeta Gouri Anurag Goel M.L. Tayal

Notable cases
In June 2012, CCI imposed a fine of 6307 crore(s) (US$1.2 billion) 11 cement companies for cartelisation. CCI claimed that cement companies met regularly to fix prices, control market share and hold back supply which earned them illegal profits.[7][8] In January 2013, CCI modified clauses in agreements between real estate company DLF Limited and apartment buyers.[9] Business and finance vortal Moneycontrol.com welcomed the order saying that, "This is a landmark ruling and will benefit property owners across the country". Some of the important modifications

were: The Builder can not undertake any additional construction beyond the approved building plan given to the buyers.[9] The builder will not have complete ownership of open spaces within the residential project area not sold.[9] Not just the buyer but the builder will be liable for any defaults.[10] All payments made by the buyers must be based on construction milestones and not "on demand".[10] The builder will not have the sole power to form the owners association.[10] On 8 February 2013, CCI imposed a penalty of 52.24 crore(s) (US$9.6 million) on the Board of Control for Cricket in India (BCCI) for misusing its dominant position. The CCI found that IPL team ownership agreements were unfair and discriminatory, and that the terms of the IPL franchise agreements were loaded in favour of BCCI and franchises had no say in the terms of the contract. The CCI ordered BCCI to "cease and desist" from any practice in future denying market access to potential competitors and not use its regulatory powers in deciding matters relating to its commercial activities.[11][12]

References
1. ^ "Photo of CCI title" (http://www.livemint.com/rf/Image-621x414/LiveMint/Period1/2013/02/09/Photos/CCI1-621x414.jpg). live mint. Retrieved 10 February 2013. 2. ^ a b "CCI formation" (http://www.cci.gov.in/index.php?option=com_content&task=view&id=18). CCI. Retrieved 4 January 2013. 3. ^ a b "CCI through the eyes of the media: Doing well!" (http://www.moneylife.in/article/competition-commissionthrough-the-eyes-of-the-media-doing-well/28549.html). MoneyControl.com. 18 September 2012. Retrieved 4 January 2013. 4. ^ "Section 66 in The Competition Act, 2002" (http://www.indiankanoon.org/doc/1949393/). Retrieved 10 February 2013. 5. ^ a b c d "The Competition Act Act No. 12 of 2003" (http://www.cci.gov.in/images/media/competition_act/act2002.pdf). Competition Commission of India. Retrieved 10 October 2012. 6. ^ "CCI Organogram" (http://www.cci.gov.in/index.php?option=com_content&task=view&id=117). Competition Commission of India. Retrieved 12 December 2012. 7. ^ "Competition Commission of India imposes Rs 6,307 crore penalty on 11 cement companies" (http://articles.economictimes.indiatimes.com/2012-06-22/news/32368892_1_cement-makers-madras-cements-jkcement). Economic Times. 22 June 2012. Retrieved 4 January 2013. 8. ^ "Busted: 'Cartelising' cement firms" (http://www.business-standard.com/india/news/busted-cartelising-cementfirms/478491/). Business Standard. 26 June 2012. Retrieved 4 January 2013. 9. ^ a b c "Competition Commission of India modifies DLF-buyer agreements" (http://economictimes.indiatimes.com/markets/real-estate/news/cci-modifies-dlf-buyeragreements/articleshow/17879672.cms). Economic Times. 4 January 2013. Retrieved 4 January 2013. 10. ^ a b c "CCI ruling on DLF: Changing the builder-buyer equation?" (http://www.moneycontrol.com/news/business/cci-rulingdlf-changingbuilder-buyer-equation_803652.html). Money Control. 4 January 2013. Retrieved 4 January 2013. 11. ^ "SS-Barmi-v-BCCI" (http://www.scribd.com/doc/124522532/SS-Barmi-v-BCCI). 8 February 2013. Retrieved 8 February 2013. 12. ^ "Competition watchdog slaps Rs.52.24 crore fine on BCCI" (http://www.livemint.com/Politics/tz5p5j5vkTEYiIanZXE71J/Competition-watchdog-slaps-5224-crore-fine-onBCCI.html). Live Mint. Retrieved 8 February 2013.

External links
Official website (http://www.cci.gov.in) The Competition Act, 2002 (http://www.cci.gov.in/images/media/competition_act/act2002.pdf? phpMyAdmin=QuqXb-8V2yTtoq617iR6-k2VA8d) Competition Law Bare Act & Articles (http://www.competitionact.in) Hindi Retrieved from "http://en.wikipedia.org/w/index.php?title=Competition_Commission_of_India&oldid=550563598" Categories: Indian commissions Regulatory agencies of India Vajpayee administration Competition regulators This page was last modified on 16 April 2013 at 00:24. Text is available under the Creative Commons Attribution-ShareAlike License; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization.