Context

• Government has constituted a 10 member panel chaired by Injeti Srinavas to suggest ways to make the anti-trust law (Competition Act 2002) in sync with the changing business environment.

About

The committee has been tasked:

• To study other regulatory regimes/institutional mechanisms/government policies which overlap with the Competition Act.
• To look into international best practices in the competition fields, especially anti-trust laws, merger guidelines and handling cross border competition issues.
• To review the competition Act/Rules/Regulations in the view of changing business environment and bring necessary changes if required.
  
  

  The Competition Act 2002: As amended by the Competition (Amendment) Act 2007, it lays the ground rules for fair trade practices and prohibits abuse of dominance, bid rigging, cartelization, predatory pricing and mergers of companies that have an appreciable adverse effect on competition. Wherever mergers of companies are found to be affecting competition, the Competition Commission of India suggests modifications to transactions. Competition Commission of India (CCI): It was established in 2003 under the Competition Act 2002, to achieve the objectives sought under the Act. CCI consists of a chairperson and 6 members appointed by the central government. It is the duty of the Commission to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade in the markets of India.

Significance

• The formation of the committee to review Competition Act is important at a time when Indian economy is witnessing a series of acquisitions in the light of resolution of stressed assets through Insolvency and Bankruptcy Code.
• The growing size of the Indian economy, which is now the world’s fifth largest economy, also makes it imperative to overhaul and revitalize anti-trust law so as to make it more relevant to the present needs of the economy.
• A strengthened and recalibrated competition law will promote best practices which will help Indian citizens to get value for money.