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Polity

The Competition Commission of India (CCI)

  • The Competition Commission of India (CCI) is seeking suggestions to undertake a market study on artificial intelligence (AI) and its influence on competition.

About the Competition Commission of India (CCI)

  • The Vajpayee administration formed the CCI as a statutory organisation under the 2002 Competition Act.
  • It seeks to encourage and preserve competition, defend consumer interests, and secure free commerce.
  • The commission serves as a quasi-judicial entity, advising statutory agencies and deciding matters.
  • Evolution of CCI:
    • Established in response to the need to encourage competition and private enterprise, particularly following India’s economic liberalisation in 1991.
    • The Monopolies and Restrictive Trade Practices Act of 1969 (MRTP Act) was replaced in accordance with the Raghavan Committee’s recommendations.

Key Features of the Competition Act:

  • The Competition Act was passed in 2002 and has since been updated to reflect contemporary competition regulations.
  • Anticompetitive agreements, misuse of dominant positions, and combinations that harm competition are all prohibited.
  • Created the Competition Commission of India and the Competition Appellate Tribunal.
  • In 2017, the National Company Law Appellate Tribunal (NCLAT) superseded the Competition Appellate Tribunal (COMPAT).

Composition of CCI:

  • CCI consists of a Chairperson and 6 members selected by the Central Government.
  • Members must have extensive experience in a variety of fields, including law, economics, finance, and management, or be prepared to serve as a High Court judge.

Key Functions of CCI:

  1. Regulating Mergers and Acquisitions:
  • Ensure that mergers and acquisitions do not reduce market competition.
  • Eliminating monopolistic behaviours and encouraging fair competition. 
  1. Investigating Anti-Competitive Practices:
  • Investigations of cartels, collusion, and exploitation of dominating market positions.
  • Taking action against organisations that engage in anti-competitive behaviour. 
  1. Market Studies and Research:
  • Conducting research to evaluate market dynamics and competitive levels.
  • Identifying trends and concerns that influence competition in diverse industries. 
  1. Handling Complaints:
  • Responding to individual or corporate complaints against anti-competitive behaviour.
  • Beginning investigations based on credible allegations received. 
  1. Adjudication and Penalty Imposition:
  • Adjudicating instances involving competition law breaches.
  • Penalties are imposed on entities deemed to be in violation of competition regulations. 
Source: https://www.cci.gov.in/

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