Competition Commission of India is a statutory body of the Government of India undertaking an enforcing The Competition Act, 2002 whole of India and to prevent activities that have an appreciable adverse effect on competition in India. It was set up on 14 October 2003. It became wholly functional in May 2009 with Dhanendra Kumar as its first Chairman.
The Competition Act
The Competition Act, 2002, as altered by the Competition (Amendment) Act, 2007, follows the philosophy of modern competition laws. The Act stops anti-competitive agreements, abuse of dominant position by enterprises and regulates combinations (acquisition, acquiring of control and M&A), which causes or likely to cause an appreciable adverse effect on competition within India.
To encourage and sustain an enabling competition culture through engagement and enforcement that would inspire businesses to be fair, competitive and innovative; enhance consumer welfare, and support economic growth.
Competition Commission of India aims to establish a robust competitive environment by:
- Proactive engagement with all stakeholders, covering consumers, industry, government, and international jurisdictions.
- Being a knowledge-intensive organization with huge competence level.
- Professionalism, transparency, resolve and wisdom in enforcement.
The preamble to the Competition Act
An Act to give, keeping in view of the economic development of the country, for the establishment of a Commission to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets, in India, and for matters connected therewith or incidental thereto.
To achieve its goals, the Competition Commission of India endeavors to do the following:
- Make the markets work for the advantage and welfare of consumers.
- Ensure fair and healthy competition in economic activities in India for faster and inclusive growth and development of the economy.
- Implement competition policies with a focus to effectuate the most efficient utilization of economic resources.
- Develop and nurture effective relations and interactions with sectoral regulators to ensure proper alignment of sectoral regulatory laws in tandem with the competition law.
- Effectively carry out competition advocacy and spread information on the advantages of competition among all stakeholders to establish and nurture competition culture in the Indian economy.