Competition Commission of India was formed under Section 7 of the Act by the Central

Government after the verdict of Supreme Court in the case of Brahma Dutt vs. Union of India
[AIR 2005 SC 730]where the Court held that for the purpose of regulatory and advisory
functions relating to competition in market, Competition Commission of India be established and
for the purpose of adjudicatory functions, Competition Appellate Tribunal be established.

Constitution

Section 8(1) of the Act provides that the Commission shall consist of a Chairperson and not less
than two and not more than six other members to be appointed by the Central Government. The
members will be handling the administration and Coordination division, Investigation division,
Economic division, Combination division, Anti-trust Division and Legal division.

Section 8(2) of the Act further provides that the Chairperson and other members be a person of
integrity, ability, and standing and who has been or is been qualifies to be a Judge of High Court
or has special knowledge and professional experience of not less than fifteen years in
international trade, economics, law, business, finance, accountancy, industry, public affairs, or in
any other matter which is in the opinion of the Central Government, may be useful to the
commission.

Section 10(1) of the Act provides that the Chairperson and other members shall be whole-time
members and shall hold the office for a time period of 5 years and are eligible for re-
appointment. No member can hold the office after he has attained the age of sixty-five years.

Resignation and Removal

Section 11(1) of the Act provides that the Chairperson or any other Member may resign from his
office, by giving a notice to Central Government. However, the Chairperson cannot relinquish
his office until the expiry of three months from the date of said notice or until the person
appointed as his her successor enters upon his office.

Section 11(2) of the Act provides that the Central Government may remove the Chairperson or
any other member from his office if he –

a. Is, or at any time has been adjudged as an insolvent.

b. Has at any time engaged in any paid employment during his term in office.
c. Has been convicted of an offence which, in the opinion of Central Government, involves
moral turpitude.
d. Has acquired such financial or other interest as is likely to affect prejudicially his
functions as a Member.
 e. Has so abused his position as to render his continuance in office prejudicial to public
interest.
f. Has become physically or mentally incapable of acting as a member.

Section 11(3) says that for the purpose of removal of Chairperson or any other Member due to
reasons as mentioned in clauses d and e, an inquiry will be made by the Supreme Court and only
on its recommendation that he ought to be removed on such ground or grounds, the removal will
take place.

Powers and Functions of the Commission:

1. To eliminate practices having an adverse effect on competition, promote and sustain

competition, protect interests of consumers and ensure freedom of trade by other
participants.
2. Inquire into certain agreements and dominant position of enterprise– It provides that the
Commission may either suo moto or on receipt of any information of alleged
contravention of Section 3 (prohibits anti-competitive agreements) may inquire into the
same.
3. Inquiry into the acquisition, control, and combinations– Section 20 of the Act entrusts the
Commission with the power to inquire into any information relating to acquisition and
determine whether such combination or acquisition may have an appreciable adverse
effect on competition (AAEC).
4. Power to regulate its own procedure – Section 36.
5. Power to impose a monetary penalty – Section 39.
6. Power to issue an interim order– Section 33 of the Act empowers the Commission to
issue interim orders in cases of anti-competitive agreements and abuse of dominant
position, thereby temporarily restraining any party from carrying on such an act.
7. Competition Advocacy– Section 49 of the Act provides for competition advocacy and
enumerates that the Central or the State Government may while formulating any policy
on Competition or any other matter may make reference to the Commission for its
opinion on the possible effect of such policy on Competition. However, the opinion given
by the Commission is not binding on the Central Government.
Competition in the economy is the best way to ensure that the Common Man gets access to
the widest range of goods and services at the most competitive prices. This more important
for a developing economy like ours. With increasing competition in India, the producers have
maximum incentive to innovate and specialize in their goods and services. A fair competition
results in reduced costs and wider choice to consumers.
 The Competition Commission of India is a statutory authority with the mandate to enforce
competition Act 0f 2002. The objective of the CCI is to create and sustain fair competition in the
economy which will provide a ‘level playing field’ to the producers, while making the markets
work for the welfare of the consumers.

The Competition Act, 2002, after amendment by the Competition (Amendment) Act, 2007,
follows the ideals of modern competition laws. The Act established the Competition
Commission of India (CCI), from 14th October 2003 to achieve the aforementioned objectives.

The Competition Act 2002 prohibits anti-competitive agreements between enterprises, or the
abuse of dominant position by these enterprises. The Act regulates combinations (in form of
acquisition, acquiring of control and M&A), that causes or are most likely to cause, any
appreciable adverse effect on the competition level within Indian economy.

Composition of Competition Commission of India (CCI):

The CCI comprises of a Chairperson and six Members, who are appointed by the Government of
India. The Commission is manned by the following members

 Chairperson – Ashok Chawla,

 Member – S. L. Bunker
 Member – Sudhir Mital
 Member – Augustine Peter
 Member – U. C. Nahta

The term of office of all the members of CCI is 5 years or till the attainment of age pf 65
years(whichever is early). The members are eligible for re-appointment.

The Chairperson and other members of CCI cannot hold any further employment for a period of
two years from the date they cease to hold office in the Commission. But this restriction does not
applies to any employment in the Union and State Government authority.

Objectives of Competition Commission of India CCI:

The Competition Commission of India (CCI) has been entrusted with the following task –

 To promote and then sustain an enabling competition culture through engagement and
enforcement which would inspire businesses to be fair, competitive and innovative.
 To enhance the consumer welfare
 To support economic growth.
  The Competition Commission of India aims to establish a robust competitive
environment through proactive engagement with all the stakeholders including the
consumers, industry, government as well as international jurisdictions.

Functions of Competition Commission of India (CCI):

 It is the duty of the CCI to eliminate such practices that have adverse effect on
competition.
 It is mandated to promote and sustain competition while protecting the interests of
consumers.
 CCI ensures freedom of trade in the Indian market.
 The Commission also gives opinion on competition issues when asked by a statutory
authority which is established under law.
 It is also required to undertake competition advocacy.
 The CCI also creates public awareness and imparts training on competition issues.
 Additionally, an appellate body called ‘Competition Appellate Tribunal‘ was also set
up based on the Amendment Act of 2009, which allows for final appeal to Supreme Court
of India.
 CCI is therefore, fully empowered to carry out the mandated functions.

The Competition Appellate Tribunal:

 The tribunal is established by the Central Government to hear, and dispose of appeals
against orders and directions passed by the Competition Commission of India.
 The Competition Appellate Tribunal adjudicates on claims for compensation that may
have arisen from the findings of the Competition Commission of India.

The Competition Appellate Tribunal is composed of a Chairperson and maximum 2 members.

Their term of office is 5 years or till they attain the age of 65 years. The members of the tribunal
are eligible for re-appointment.

The provisions of the Tribunal allow for a final appeal to the Supreme Court of India if the
aggrieved parties are not satisfied with the adjudications of the tribunal.