• The Union Cabinet has given its approval for rightsizing the Competition Commission of India (CCI) from One Chairperson and Six Members (totalling seven) to One Chairperson and Three Members (totalling four).
• Section 8(1) of the Competition Act, 2002 (the Act) provides that the Commission shall consist of a Chairperson and not less than two and not more than six Members.
Why this move
• The move is expected to stimulate business process of corporates and generate job opportunities by speeding up hearings and approvals
• It will also reduce government interference in the working of anti-trust regulator Competition Commission of India (CCI).
About Competition Commission Of India
• The Competition Commission of India (CCI) was established under the Competition Act, 2002 for the administration, implementation and enforcement of the Act, and was duly constituted in March 2009. Chairman and members are appointed by the central government.
The following are the objectives of the Commission
• To prevent practices having adverse effect on competition.
• To promote and sustain competition in markets.
• To protect the interests of consumers.
• To ensure freedom of trade.
Functions of the commission
• 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.
• The Commission is also required to give opinion on competition issues on a reference received from a statutory authority established under any law and to undertake competition advocacy, create public awareness and impart training on competition issues.
The Competition Act
• The Competition Act, 2002, as amended by the Competition (Amendment) Act, 2007, prohibits anti-competitive agreements, abuse of dominant position by enterprises and regulates combinations (acquisition, acquiring of control and M&A), which causes or likely to cause an appreciable adverse effect on competition within India.