POWER AND FUNCTIONS OF COMPETITION COMMISSION OF INDIA

•    THE COMPETITION COMMISSION
COMPANY LAW

Ø  INTRODUCTION

·         SET UP IN 2002 BY THE VAJPAYEE GOVT TO PROMOTE THE COMPETITION AND PRIVATE ENTERPRISE IN THE LIGHT OF 1991 INDIAN ECONOMIC LIBERALIZATION.

·         THE COMPETITION ACT 2002 AS AMENDED BY THE COMPETITION(AMENDMENT) ACT 2,007 FOLLOWS THE PHILOSOPHY OF MODERN COMPETITION.

·         THE OBJECTIVE OF THE ACT TO PROHIBITS ANTI COMPETITIVE AGREEMENTS,ABUSE OF DOMINANT POSITION BY ENTERPRISES AND REGULATES THE COMBINATIONS WHICH CAUSES OR LIKELY TO CAUSE ADVERSE EFFECT ON COMPETITION WITH IN INDIA

Ø  COMPETITION COMMISSION OF INDIA

•    ESTABLISHED BY CENTRAL GOVT WITH EFFECT FROM 14 TH OCTOBER 2003.

•    CONSISTS OF CHAIRPERSON AND 6 MEMBERS RESPECTIVELY APPOINTED BY THE CENTRAL GOVERNMENT

•    DUTY OF THE COMMISSION TO ELIMINATE PRACTICES HAVING ADVERSE EFFECT ON COMPETITION,PROTECT THE INTEREST OF CONSUMERS AND ENSURE FREEDOM OF TRADE IN THE MARKET OF INDIA.

•    THE COMMISSION IS ALSO REQUIRED TO GIVE AN OPINION ON COMPETITION ON A REFERENCE RECEIVED FROM A STATUTORY AUTHORITY.

•    ALSO UNDERTAKE TO ADVOCACY OF COMMISSION,CREATE PUBLIC AWARENESS AND IMPART TRAINING ON COMPETITION BASIS.

Ø  COMPOSOTION OF COMPETITION COMMISSION

•    A CHAIR PERSON AND  NOT LESS THAN 2 AND NOT MORE THAN 6 OTHER MEMBERS TO BE APPOINTED BY THE CENTRAL GOVERNMENT

•    THEY ARE APPOINTED FOR 5 YEARS( TILL THE AGE OF 65 YEARS)

•    ELIGIBLE FOR REAPPOINTMENT.

•    THEY SHOULD POSSESS SPECIAL KNOWLEDGE AND PROFESSIONAL EXPERIENCE OF NOT LESS THAN 15 YEARS IN INTERNATIONAL TRADE,ECONOMICS,BUSINESS,COMMERCE,LAW ,FINANCE,ACCOUNTANCY.

•    THE CHAIRPERSON AND OTHER MEMBERS SHALL NOT FOR A PERIOD OF TWO YEARS FROM THE DATE ON WHICH THEY CEASE TO HOLD OFFICE ANY EMPLOYMENT IN OR CONNECTED WITH THE MGMT/ADMINISTRATION OF ANY ENTERPRISE WHICH HAS BEEN A PARTY TO PROCEEDING BEFORE THE COMPETITION.

•    BUT THESE RESTRICTION WILL NOT APPLICABLE IF THE EMPLOYMENT UNDER CENTRAL/STATE GOVERNMENT/LOCAL AUTHORITY/STATUTORY AUTHORITY

Ø  APPOINTMENT OF DIRECTOR AND GENERAL(16)

•    THE CENTRAL GOVERNMENT MAY BY NOTIFICATION APPOINT DIRECTOR GENERAL FOR THE PURPOSE OF ASSISTING THE COMMISSION IN CONDUCTING INQUIRY INTO CONTRAVENTION OF ANY OF THE PROVISIONS OF THIS ACT.

Ø  POWERS AND FUNCTIONS OF THE COMMISSION

1.       TO ELIMINATE PRACTICES HAVING ADVERSE AFFECT ON COMPETITION,PROMOTE AND SUSTAIN COMPETITION,PROTECT INTERESTS OF CONSUMERS AND ENSURE FREEDOM OF TRADE BY OTHER PARTICIPANTS

2.       INQUIRE INTO CERTAIN AGREEMENT AND DOMINANT POSITION OF THE ENTERPRISE

3.       SECTION 20 OF THE ACT EMPOWERS THE CCI TO INQUIRE INTO COMBINATION OR ACQUISITION TO KNOW WHETHER THEY HAVE APPRECIABLE ADVERSE EFFECT ON COMPETITION

4.       REFERENCE OF ISSUE BY A STATUTORY AUTHORITY UNDER SECTION 21

5.       REFERENCE MADE BY COMMISSION IN THE COURSE OF PROCEEDING IF IT IS CONTRAVENTION OF THE PROVISIONS OF THE COMPETITION ACT OF INDIA

6.       SECTION 33 EMPOWERS TO ISSUE INTERIM ORDERS IN CASE OF ANTI COMPETITIVE AGREEMENTS.

7.       COMPETITION ADVOCACY SECTION 49 OF THE ACT PROVIDES THAT CENTRAL OR STATE GOVT MAY MAKE REFERENCE TO COMMISSION FOR THE OPINION. BUT THAT IS NOT BINDING ON THE GOVERNMENT.