Competition Commission of India (CCI), Composition, Function and Challenges

Context: The Competition Commission of India ordered a probe after finding Google’s user choice billing (UCB) system to be prima facie anti-competitive.

About Competition Commission of India

• What it is: A statutory body set up by the Indian government in 2009 to enforce the Competition Act of 2002.
• Goal: Create a fair and competitive market that benefits both businesses and consumers.
• Nodal Ministry: Ministry of Corporate Affairs.
• Priorities:
  • Eliminate practices that harm competition.
  • Promote healthy competition in the Indian market.
  • Protect consumer interests.
  • Ensure freedom of trade.
• Main responsibilities:
  • Enforce the Competition Act: Prohibit anti-competitive agreements and dominant companies from abusing their power.
    • Regulate mergers and acquisitions that could reduce competition.
  • Oversee large companies: Ensure they don’t control supply, set unfair prices, or harm new businesses.
• Structure:
  • Quasi-judicial body with one chairperson and six members.
  • All members are appointed by the central government.
• Eligibility Criteria: The individual should possess the competence, honesty, and reputation suitable for a High Court judge, or, have at least fifteen years of specialised expertise and professional background in areas such as international trade, economics, business, commerce, law, finance, accounting, management, industry, public matters, administration, or related fields.
• Headquarters: New Delhi

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Functions of Competition Commission of India (CCI)

1. Ensuring consumer welfare and market efficiency.
2. Facilitating inclusive economic growth through fair competition.
3. Efficient utilization of national resources.
4. Conducting competition advocacy and acting as an antitrust ombudsman.
5. Scrutinizing foreign companies entering Indian markets.
6. Coordinating with other regulatory authorities to ensure compliance with competition laws.
7. Preventing dominance of firms in the market and ensuring co-existence of small and large enterprises.

Challenges Faced by Competition Commission of India (CCI)

1. Evolving business models and antitrust issues.
2. Adaptation to digital economy and e-commerce challenges.
3. Need for increased adjudicatory capacity.
4. Incorporating parameters like data accessibility into competition laws.

Recent Developments 

1. Virtual Workshop of BRICS Competition Agencies on Automotive Sector Competition Issues.
2. Engagement with startup founders regarding Google’s anti-competitive policies.
3. Adaptation of procedures during the COVID-19 pandemic to ensure continuity and accessibility.

Conclusion: The Competition Commission of India plays a crucial role in fostering fair competition and ensuring market efficiency. Despite challenges posed by evolving business landscapes, CCI remains committed to its mandate of promoting consumer welfare and economic growth through effective competition regulation.

By comprehensively understanding the objectives, functions, and challenges of CCI, UPSC aspirants can better grasp the intricacies of Indian polity and economics, enhancing their preparation for the civil services examination.

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