Para 3.10 - Competition Commission | KartavyaDesk
Original Rule Text
iv) Section 8 dealing with composition of Commission provides for a chairperson and not less than two and not more than six members which are to be appointed by Central Government. The CCI is vested with inquisitorial, investigative, regulatory, adjudicatory and also advisory jurisdiction. Vast powers have been given to the Commission and under Section 64, the Commission can frame regulations. v) The Competition Appellate Tribunal (COMPAT) is another body entrusted with the responsibility of hearing and disposing of appeals against any direction or decision or order of the CCI. It also adjudicates on compensation claims arising from the findings of the CCI or its own findings on appeals against the CCI orders and passes orders on the recovery of compensation. vi) Any person aggrieved by the order or decision of the CCI may prefer an appeal to the Competition Appellate Tribunal (‘COMPAT’) within 60 (sixty) days from the date of communication of such order or decision. The second and final appeal under Section 53T lies before the Supreme Court of India from the orders of the COMPAT within a period of 60 (sixty) days from the date of communication of the order by the COMPAT. vii) CCI may initiate an inquiry: i) On its own motion on the basis of information and knowledge in its possession, or ii) On receipt of any information, in such manner and accompanied by such fee as may be determined by regulations, from any person, consumer or their association or trade association, or iii) On receipt of a reference from the Central Government or a State Government or a statutory authority viii) The Act provides for Director General office as a separate investigative wing to assist the CCI. The DG looks into the complaints received from the CCI and submits all findings to it. DG is solely responsible for making enquiries, for examining documents and for making investigations into complaints. The DG is vested under the Act with powers of summoning of witnesses, examining them on oath, requiring the discovery and production of documents, receiving evidence on affidavits, issuing commissions for the examination of witnesses etc. ix) The Act in Section 49 (3) lays down the advocacy function of CCI and lays down that the CCI shall take suitable measures for the promotion of competition advocacy, creating awareness and imparting training about competition issues. Section 32 of the Act grants the CCI extra-territorial jurisdiction over anticompetitive conduct which has an appreciable adverse effect on competition within India. Any anticompetitive activity taking place outside India but having an appreciable adverse effect on competition within India shall be subject to the application of the Competition Act. x) Under s. 21 of the Act, any statutory authority can suo motto or on request of a party in the course of a proceeding before it can make a reference to CCI. CCI shall give its opinion within sixty days of receipt of such reference by such statutory authority. Under the provisions of the Act, the authority which made reference shall consider the opinion of the Commission and thereafter, give its findings recording reasons on the issues referred to in the said opinion by CCI. Section 21A in the same language provides for such reference by CCI to any statutory authority. xi) The key provisions of the Competition Act include:
What This Means
Para 3.10 of the Works Manual outlines the structure, powers, and functions of the Competition Commission of India (CCI) and the Competition Appellate Tribunal (COMPAT). It explains that the CCI, composed of a chairperson and members appointed by the Central Government, is responsible for preventing anti-competitive practices in the market. The CCI has broad powers to investigate, regulate, and adjudicate on competition-related matters, and can even create its own regulations. COMPAT acts as an appellate body, hearing appeals against CCI decisions and adjudicating compensation claims. Ultimately, appeals from COMPAT can be taken to the Supreme Court.
This rule also details how the CCI can initiate inquiries, including on its own initiative, based on information received, or through referrals from government bodies. It highlights the role of the Director General (DG) as an investigative arm of the CCI. Furthermore, it emphasizes the CCI's duty to promote competition advocacy and its extra-territorial jurisdiction, meaning it can act against anti-competitive activities happening outside India if they affect competition within India. Finally, it explains how other statutory authorities can refer matters to the CCI for its opinion.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •The Competition Commission of India (CCI) is the primary body for regulating competition in India.
- •The CCI has broad powers, including investigation, regulation, and adjudication.
- •The Competition Appellate Tribunal (COMPAT) hears appeals against CCI orders, with final appeals going to the Supreme Court.
- •The CCI can initiate inquiries based on various sources, including its own motion and referrals from government bodies.
- •The CCI has extra-territorial jurisdiction over anti-competitive conduct affecting India.
Practical Example
Imagine a scenario where 'SteelCo,' a major steel manufacturer, is suspected of colluding with other steel companies to fix prices, creating an unfair advantage and harming consumers. A consumer association, 'Bharat Consumers,' files a complaint with the CCI. The CCI, based on this information, initiates an inquiry. The Director General (DG) office investigates the matter, examining SteelCo's financial records and interviewing key personnel. If the DG's investigation reveals evidence of price-fixing, the CCI can issue an order imposing penalties on SteelCo. SteelCo, if aggrieved by the CCI's order, can appeal to COMPAT. If COMPAT upholds the CCI's decision, SteelCo can then appeal to the Supreme Court.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is the role of the Director General (DG) in the context of the Competition Act?▼
What types of actions can the CCI take against companies found to be engaging in anti-competitive practices?▼
How does the Competition Act address anti-competitive activities that occur outside of India?▼
What is the time limit for filing an appeal against an order of the CCI?▼
Can a statutory authority refer a matter to the CCI?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Test Your Knowledge
Question 1 of 3
According to Para 3.10, what is the permissible range for the number of members, excluding the chairperson, that can be appointed to the Competition Commission of India (CCI) by the Central Government?
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