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Competition Commission Of India
Competition Commission was established on 14 October 2003 becoming completely operational in May, 2009. This Commission is a body of the Government of India formed to ensure the enforcement of the The Competition Act, 2002 and to police the activities are detrimental to healthy competition in the Indian market.
The Competition Act of 2002
The Competition Act of 2002 was amended and now is the Competition (Amendment) Act of 2007 which follows and aims to apply the philosophy of modern competition laws. According to this act, anti-competitive agreements, the misuse of dominant position by enterprises is forbidden and combinations(acquisition, acquiring of control and M&A) are restricted, which effect competition negatively or probably may harm the healthy competitive environment around Indian businesses.
This Act provides, with respect to the economic growth of the nation, for a ‘Commission’ to prevent negative practices that damage healthy competition, regulate proper competition in business, to preserve the consumer interests and confirm the freedom of trade for the various other participants in the Indian market and for matters connected therewith or incidental thereto.
Objectives
The Competition Commission of India or the CCI was established by the Central Government of India with effect from 14th October 2003, to facilitate the Competition Act and execute its objectives. CCI comprises of six Members appointed by the Central government and a Chairman.
The primary responsibility of the CCI is to prevent competition malpractices, maintain healthy competition, preserve consumer interests and ensure free trade in the Indian markets.
The CCI is also obliged to advice the government on various competition issues when referenced by a competent statutory authority installed under any law and to advocate the importance of competition to the administration and the general population and also provide training problems involving competition.
To reach the goals of the Competition Act, the CCI strives to
- Ensure market environments are conducive to the welfare and wellbeing of consumers.
- To help develop the economy at a better rate by provisioning healthy and fair competition in the economic activities in India.
- Use the proper competition policies to increase the efficiency in the use of economic resources of the nation.
- To develop and maintain smooth rapport with the respective regulatory government agencies and bodies to facilitate effective alignment of regulation laws with respect to the competition law.
- Effectively advocate competition and share and promote the need for competition among shareholders to establish competition culture in the Indian economy.
Notable Decisions
Important decisions by the CCI in the recent past that highlight the work of the commission.
- In June 2012, CCI imposed a fine of 1.15 billion dollars on 11 cement companies for cartelization. CCI claimed that cement industrialists met in secret to fix prices, strategize market control and withhold supply with the intention to generate profit illegally.
- In January 2013, CCI amended the agreements between real estate giant, DLF Limited and its customers. Some essential modifications are as follows.
The Builder can not do any construction in addition to the approved building plan already given to the buyers. The builder cannot claim complete ownership of open spaces within the residential project. Not just the buyer but the builder will be liable for any defaults. All payments made by the buyers must be based on construction milestones and not "on demand" . The builder will not have the sole power to form the owner’s association.