Fact Box:
Competition Commission of India (CCI)
- The Competition Commission of India (CCI) is a statutory body of the Government of India responsible for enforcing the Competition Act, of 2002, it was duly constituted in March 2009.
- The Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act) was repealed and replaced by the Competition Act, 2002, on the recommendations of the Raghavan committee.
- Composition: The Commission consists of one Chairperson and six Members who shall be appointed by the Central Government.
The Competition Act, of 2002:
- The Competition Act, 2002, regulates competition in the Indian market and prohibits anti-competitive practices such as cartels, abuse of dominant market position, and mergers and acquisitions that may have an adverse effect on competition.
- The Act has been amended by the Competition (Amendment) Act, 2007.
- The Competition Commission of India (CCI) is responsible for implementing and enforcing the Act.
- Judicial bodies:
- The Competition Appellate Tribunal is a statutory body created in accordance with the Competition Act, 2002 to hear and regulate on appeals against any rules made, decisions made, or orders made by the Competition Commission of India.
- The government replaced the Competition Appellate Tribunal with the National Company Law Appellate Tribunal (NCLAT) in 2017.
Key-Terms
- Predatory Pricing: Predatory pricing occurs when a company sets prices below cost to drive competitors out of the market, with the intention of raising prices once competition is eliminated.
- Cartels: Cartels are illegal associations of businesses or countries that collude to fix prices, control production, or limit competition in a specific market.
- Mergers: Mergers involve the combination of two or more companies, which can sometimes reduce market competition, prompting regulatory scrutiny to prevent monopolistic outcomes.
- Price Discrimination: Price discrimination involves charging different prices to different customers for the same product or service, and while not always illegal, it can harm competition if it leads to market distortion.
- Price Fixing Agreements: Price fixing occurs when competitors agree to set prices at a specific level, eliminating competition and artificially inflating prices, violating antitrust laws.
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