Competition commission of India and their role and importance

Competition commission of India and their role and importance

Competition Commission of India

The Competition Commission of India is established under the Competition Act, 2002 Act, for the administration, implementation, and enforcement of the Act. It was duly constituted in March 2009.

Objectives of the Competition Commission of India

The objectives of the Commission are towards:

  •  preventing practices having an adverse effect on competition.

  •  promoting and sustaining competition in markets.

  •  protecting the interests of consumers.

  •  ensuring freedom of trade.

Selection of the Committee

  • The Chairperson and every other member of the Commission are selected by the Central Government from a panel of names as suggested by the Selection Committee. The selection committee consists of the Chief Justice of India or his nominee for Chairperson;  The Secretary in the Ministry of Corporate Affairs for the member;  The Secretary in the Ministry of Law and Justice for the member; and two experts of repute who have special knowledge as well as professional experience in international trade, economics, business, commerce, law, finance, accountancy, management, industry, public affairs, or competition matters which includes competition law as well as policy for the member of the committee.

Term of office of Chairperson and the members of the Commission

  • The Chairperson and all the member of the commission would hold office for a term of 5 years from the date of appointment and is qualified for re-appointment. Though, the  Chairperson or any member must not be of age more than 65 years while appointment.

  • Any vacancy which took place due to the resignation or removal or death shall be fulfilled by a fresh appointment in accordance with the provisions of section 9 of this Act.

  • The Chairperson and all the member is required to take an oath of the office and of secrecy before an authority as prescribed.

  • A vacancy of Chairperson due to his death, resignation or otherwise, the senior-most member of the commission would Act as Chairperson until the new Chairperson is chosen and enters the office. The same procedure would take place when the Chairperson is incompetent to discharge his function because of illness or any other cause then the senior-most members would discharge the functions of that Chairperson until he dates on which the Chairperson start again the charge of his functions.


  • As per Section 8(1) of the Act, it states, that the Commission would contain a Chairperson and not below two and not above six other members being appointed by the Central Government. The members shall be handling the division of the administration and Coordination, Investigation, Economic, Combination, Anti-trust and Legal.

  • Section 8(2) of the Act states that the Chairperson and all the members be an individual of integrity, ability, and standing and who was or is been qualifies to be a Judge of High Court or has special knowledge as well as professional experience of not below 15 years in international trade, economics, law, business, finance, accountancy, industry, public affairs, or in any different matter which is in the view of the Central Government, might be useful to the commission.

  • Section 10(1) of the Act states, that the Chairperson and all the members would be whole-time members and would hold the office for a time period of 5 years and are eligible for re-appointment. No member could hold the office after he has attained the age of 65 years.

Resignation and Removal

  • Section 11(1) of the Act states, that the Chairperson or other Members might resign from his office, by means of giving notice to Central Government. Though, the Chairperson cannot relinquish his office until the expiration of 3 months from the date of said notice or until the individual appointed as his successor enters upon his office.
  • Section 11(2) of the Act states that the Central Government might remove the Chairperson or any member from his office if that individual:-

a.    is, or when has been adjudged as an insolvent.

b.    has at any time engaged in any paid employment in the course of his term in office.

c.    was convicted of an offense which, in the view of Central Government, involves moral turpitude.

d.    has acquired such monetary or other interest as is to be expected to affect prejudicially his functions as a Member.

e.    has so abused his position as to render his continuance in office prejudicial towards the public interest.

f.    has become physically or mentally incompetent of acting as a member.

Section 11(3) states that for the purpose of removal of Chairperson or any Member because of the reasons as mentioned in clauses d and e, an inquiry would be made by the Supreme Court and only on its commendation that he must to be removed on such grounds, the removal would take place.

Powers and Functions of the Commission

  • For eliminating practices having an adverse effect on competition, promote as well as sustain competition, protect the interests of customers and make sure freedom of trade through other participants.

  • Inquiring into certain agreements and dominant position of the firm- The Commission might either suo moto or on receipt of any information of an alleged violation of Section 3 (prohibits anti-competitive agreements) might inquire into the same.

  • Inquiring into combinations – As per Section 20 of the Act, it assigns the Commission with the power towards inquiring into any information regarding the acquisition and determines whether such combination or acquisition might have an appreciable adverse effect on competition (AAEC).

  • Reference by Commission– Section 21A of the Act states that if during proceeding an issue is raised by any individual that any decision taken through the Commission is in violation of the provisions of Competition Act, whose authority is entrusted towards a statutory authority then the Commission might make a reference regarding the issue to the statutory authority.

  • Power for regulating its own procedure – Section 36.

  • Power for imposing a pecuniary penalty – Section 39.

  • Power towards issuing an interim order– Section 33 of the Act authorizes the Commission towards issuing interim orders in cases of anti-competitive agreements and abuse of dominant position, thus, for the time being, limiting any individual from carrying on such an act.

  • Competition Advocacy– As per Section 49 of the Act, it states that for competition advocacy as well as enumerates that the Central or the State Government might while formulating any policy on Competition or any other matter might make reference towards the Commission for its view on the possible effect of such policy on Competition. Though, the opinion given through the Commission is not binding on the Central Government.

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