Competition Commission of India
The Competition Commission of India (CCI) is a statutory body of the Government of India which has been made responsible to enforce the Competition Act, 2002 in India. It also aims to prevent all unfair trade activities that have an adverse effect on competition in India.
Why was the CCI formed?
- After the economic liberalization of 1991, there was a need to promote competition and private enterprise.
- However, these private companies could only thrive in a condition where there were a fair market and no company, by virtue of its position or finance, abused the market.
- Thus, the idea of Competition Commission of India was conceived by the policymakers and was introduced in the form of The Competition Act, 2002.
- The CCI comprises of a Chairperson and has 6 members, who are all appointed by the Central Government.?
What does Act demand?
- The Competition Act, 2002, which has been once amended by the Competition (Amendment) Act, 2007, aims for the prohibition of the anti-competitive agreements, the abuse of dominant market & fiscal position by enterprises.
- It also regulates any entity combinations (acquisition, acquiring of control and Merger and acquisition), which may have the potential to cause an appreciable effect on fair market competition within India.
Why is it in the news?
- Following a detailed inquiry conducted by the Competition Commission of India, the private firm “Jaiprakash Associates Limited” (JAL) has been found guilty of carrying out restrictive trade practices which violate the fair competition law.?
- JAL is an infrastructure firm and has been accused of imposing unfair/discriminatory conditions on the allottees in one of its projects.
- The private firm was found to have violated several sections of the law and a substantial financial penalty was imposed on them.
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