Why Competition Commission Of India Is Established ???
#A fair level of competition in the market will make producers to maximize incentive to innovate and specialize.This fair competition will also result in reduced costs and wider choice for consumers.
# Fair level of competition will also make a level playing field to the producers and make the markets work for the welfare of the consumers.
#Thus to create and sustain fair competition in the economy Competition Commission Of India was established.
Competition Commission Of India CCI Intro:
#Competition Commission Of India was established under The Competition Act 2002 which follows the philosophy of modern competition laws.
# The Competition act 2002,
——> Prohibits anti competition agreements
——>Abuse of dominant position by enterprises .Ex : Predatory Pricing ,Barriers to entry etc.
——>Regulates mergers and acquisition of companies.
Predatory pricing meaning : The pricing of goods and services at such a low level so that the other firms cannot compete and are forced to leave the market.
Note : Before the competition act , Monopolistic and Restrictive Trade Practices 1969 regulated Concentration of economic power ,Restrictive trade Practices ,Monopolistic trade practices and unfair trade practices.
The Competition Commission Of India Functions and Organisation :
# The commission is a body corporate which has regulatory and quasi judicial powers.It functions through benches and each bench consists of at least two members and one of such member must be a judicial member.
# CCI consists of a Chairman and 6 other members .
#Term of office for both chairman and members is 5 years and elligible for reappointment.
#The chairperson and other members are appointed by the Central Government from a panel of names recommended by a selection committee in which Chief Justice of India or his nominee is a Chairman.
# The duty of CCI is
——>to eliminate the practices that have an adverse effect on competition
——>to promote and sustain competition
——>to protect the interest of consumers
——>to ensure freedom of trade in the markets of India.
#The commission 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.