Roadmap for Answer Writing
To structure your answer effectively, follow a clear, concise roadmap with distinct sections. Here’s how you can break down the answer:
1. Introduction (1-2 sentences)
- Briefly introduce the Competition Commission of India (CCI), mentioning its creation under the Competition Act, 2002.
- State its primary purpose: promoting fair competition and protecting consumer interests.
2. Composition of the CCI (3-4 sentences)
- Chairman: Describe that the CCI is headed by a Chairman.
- Members: The CCI consists of one Chairman and up to six members.
- Eligibility Criteria: Highlight the experience and knowledge required for the members, such as 15 years of experience in areas like trade, economics, law, finance, business, or competition law.
- Appointment: All members, including the Chairman, are appointed by the Central Government.
Relevant Facts:
- The Competition Commission of India is constituted as per the Competition Act, 2002.
- Members must have expertise in international trade, economics, law, business, etc., and 15 years of experience in these fields. (Source: Competition Act, 2002)
3. Role of the CCI in Promoting Fair Competition (6-7 sentences)
- Investigating Anti-Competitive Practices: The CCI investigates violations like cartels, bid rigging, and abuse of market dominance.
- Penalties & Enforcement: It issues cease and desist orders and imposes penalties to deter anti-competitive behavior.
- Consumer Welfare: By ensuring fair competition, the CCI protects consumer interests, promoting healthy market practices.
- Merger and Acquisition Approvals: The CCI reviews mergers and acquisitions to prevent monopolistic outcomes, promoting fair market structure.
- Advocacy & Awareness: The CCI promotes competition law through workshops, seminars, publications, and public advocacy.
- Market Studies: The CCI conducts market studies to identify sectors with competition concerns (e.g., pharmaceuticals, film distribution).
Relevant Facts:
- The CCI investigates anti-competitive agreements and abuse of dominant positions across industries (Source: Competition Act, 2002).
- It has adjudicated more than 1,200 anti-trust cases and implemented innovations like the Green Channel provision for mergers (Source: CCI Reports).
- The CCI ensures that markets benefit consumers and promotes a healthy business environment (Source: CCI’s Role and Function).
4. Recent Developments and Recommendations (2-3 sentences)
- Mention the 2019 Competition Law Review Committee and its recommendations for enhancing the CCI’s effectiveness, particularly concerning investigation powers, penalties, and appellate authority.
- Reference the Competition (Amendment) Bill, 2022, which incorporates many of these recommendations to improve the enforcement of competition law.
Relevant Facts:
- The Competition Law Review Committee (2019) suggested improvements in the Appellate Authority and investigative powers (Source: Competition Law Review Committee Report, 2019).
- The Competition (Amendment) Bill, 2022 aims to strengthen the enforcement and compliance mechanisms (Source: Ministry of Corporate Affairs, 2022).
5. Conclusion (1-2 sentences)
- Summarize the CCI’s role in fostering fair competition, protecting consumers, and enhancing the business environment.
- Highlight the ongoing efforts to improve the effectiveness of the CCI through legislative amendments.
Key Facts for the Answer
- Composition of CCI:
- The Chairman and up to 6 members are appointed by the Central Government.
- Members must have 15 years of experience in fields such as international trade, economics, business, law, finance, or competition law (Source: Competition Act, 2002).
- Role of CCI in Promoting Fair Competition:
- Investigates anti-competitive agreements (like cartels) and abuse of dominant position (Source: Competition Act, 2002).
- Issues penalties, cease and desist orders, and ensures consumer welfare (Source: CCI Reports).
- Approves mergers and acquisitions, ensuring that they don’t lead to monopolistic practices (Source: CCI Reports).
- Advocacy Division organizes workshops, seminars, and publications to promote competition law awareness (Source: CCI Annual Report).
- Conducts market studies to identify sectors with competition issues, e.g., pharmaceuticals, film distribution (Source: CCI Market Studies).
- Recent Developments:
- Competition Law Review Committee (2019) made recommendations on improving the CCI’s investigative powers, penalties, and settlement procedures (Source: Competition Law Review Committee Report, 2019).
- The Competition (Amendment) Bill, 2022 aims to enhance the efficacy of the CCI by introducing new provisions (Source: Ministry of Corporate Affairs, 2022).
By following this roadmap, you will be able to address the question comprehensively and provide relevant facts with proper sources.
Model Answers
Composition of the Competition Commission of India (CCI)
The Competition Commission of India (CCI) is composed of one Chairman and up to six other members, all appointed by the Central Government. The eligibility criteria for these members include a minimum of 15 years of experience in fields such as international trade, economics, business, law, finance, and competition law, among others. The Chairman and members are expected to be individuals of ability, integrity, and standing, with specialized knowledge in their respective fields.
Role of CCI in Promoting Fair Competition
The CCI plays a pivotal role in ensuring fair competition in India’s markets through various functions:
Through these measures, the CCI contributes to a fair and conducive business environment, fostering competition and consumer protection. The recommendations of the 2019 Competition Law Review Committee and the Competition (Amendment) Bill, 2022, further aim to improve the Commission’s effectiveness (Source: Competition Commission of India Act, 2002; CCI Reports).