Role, Powers and Functions of Competition Commission of India

Role of the CCI

1. Promotion of Competition: The primary role of the CCI is to promote competition and sustain it in the market. The Commission aims to achieve this by preventing practices that hinder competition and by ensuring that businesses operate in an open and competitive market.
2. Advocacy: The CCI engages in advocacy activities to promote awareness of competition law and policy in India. It provides guidance to businesses and stakeholders on how to comply with competition law and also conducts research and analysis on competition-related issues.
3. Enforcement: The CCI is responsible for enforcing competition law and takes action against anti-competitive practices that occur in the market. It has the power to investigate anti-competitive practices, issue cease and desist orders, and impose penalties on violators.
4. Regulation: The CCI regulates mergers and acquisitions that may have an adverse effect on competition in the market. It can review and approve or reject certain types of combinations, and it can also investigate and take action against any anti-competitive practices that arise from such combinations.

Powers of the CCI

1. Investigation: The CCI has the power to investigate any suspected anti-competitive practice in the market. It can also call for information from businesses and stakeholders as part of its investigation process.
2. Imposition of Penalties: The CCI can impose penalties on violators of competition law. These penalties can range from fines to cease and desist orders, and in some cases, the CCI can also order the divestment of assets.
3. Leniency: The CCI operates a leniency programme that allows companies that disclose information about anti-competitive practices to receive reduced penalties or immunity from penalties.
4. Regulation of Mergers and Acquisitions: The CCI is responsible for regulating mergers and acquisitions that may have an adverse effect on competition in the market. It can review and approve or reject certain types of combinations, and it can also investigate and take action against any anti-competitive practices that arise from such combinations.

Functions of the CCI

1. Competition Advocacy: The CCI engages in advocacy activities to promote awareness of competition law and policy in India. It provides guidance to businesses and stakeholders on how to comply with competition law, and it also conducts research and analysis on competition-related issues.
2. Market Studies and Research: The CCI is empowered to conduct market studies and research to identify areas of the market where competition may be lacking or where anti-competitive practices may be occurring. This information is used to inform policy decisions and to guide the CCI’s enforcement activities.
3. Capacity Building: The CCI provides training and capacity building to its own staff, as well as to businesses, legal practitioners, and other stakeholders on competition law and policy. This helps to ensure that everyone involved in the market is aware of their obligations under competition law and can comply with it.

Key Points to Remember

Role

1. Promoting competition in the market
2. Advocating competition law and policy
3. Enforcing competition law
4. Regulating mergers and acquisitions

Powers

1. Investigating anti-competitive practices
2. Imposing penalties on violators
3. Offering leniency to companies that disclose information
4. Regulating mergers and acquisitions

Functions

1. Advocating competition law and policy
2. Conducting market studies and research
3. Providing capacity building and training