COMPETITION COMMISSION OF INDIA (CCI)

Objectives

In context of the requirements of economic development of Republic of India, the Act was
enacted to establish CCI as a multi-member regulator to:

(a) Promote and sustain competition in markets;

(b) Prevent practices having adverse effect on competition;

(c) Protect consumer interest;

(d) guarantee freedom of trade carried on by participants in Indian markets.

The Commission is a body corporate having perpetual succession and common seal with power
to acquire hold and dispose of property both movable and unmovable and to contract and shall

sue and be sued.The Commission is to consist of Chairperson and not less than two members
and not more than six members

Powers and functions

The Commission has duty to eliminate the practices having adverse effect on competition, to
promote and sustain competition in the market, to protect the consumer interests and to
ensure freedom

of trade carried on by different participants within the markets in india.

The Act empowers the Commission to enter into any arrangement or memoranda, with prior
approval of central government, with any agency of a foreign country for the purposes of

discharging its duties and performing its functions

In order to attain the objectives of the Act, the Commission is vested with functions and powers
to:
(a) Inquire into certain agreements and dominant position of an enterprise;

(b) Conduct such inquiry and

(c) Pass certain orders which must meet the administrative law standards of reasonableness,
fairness, proportionality and being consistent with the parent statute.

Penalty

Where Commission imposes a financial penalty and the person fails to go with the Order, the
Commission, if it of that view, may make a reference to the concerned income-tax

authority for recovery of that penalty as tax due under the Income Tax Act and the person
against whom the penalty has been imposed shall be deemed to be an Assessee in default.

In case of non-compliance of the Orders of the Commission, the Commission may impose a fine
of Rs.

one lac for each day during such non-compliance subject to maximum of Rs.

10 crores.

In case the person continues with the non-compliance and additionally fails to pay the fine, he
shall be punishable with imprisonment for a term which can be 3

years or with affine which can be Rs.

25 crores or with both as the Chief Metropolitan magistrate (CMM) delhi could see fit.the CMM
of Delhi shall take cognizance solely on a written grievance of the Commission.Similar penalty
will be imposed in case any direction of theDG isn't complied with. The Commission is
empowered to:

(a) Impose a penalty similar to one percent of total turnover or assets, whichever is higher, of a
combination if parties to the combination fail to give mandatory notice in

terms of Section 6(2)40;

(b) Impose a penalty which shall not be but Rs.50 lacs but which may extend Rs.1 crore upon an
individual to the mix if such person makes a press release that is false and knowing it's false or
omits to state any material explicit

knowing it be material;

(c) Impose a fine which can be Rs 1 crore if an individual makes a false statement; omits to state
a material fact or alters, suppresses or destroys any document which is needed to be furnished.
Competition Appellate tribunal

Competition Appellate Tribunal was established in accordance with the provisions of the
Amendment Act, 2002.

Its function is to hear and dispose of appeals against any direction issued or decision made or
order passed by the Competition Commission of India.

The Appellate Tribunal shall also adjudicate on claim for compensation that may arise from the
findings of the Competition Commission of India or the orders of the Appellate Tribunal in an
appeal against any findings of the Competition Commission of India and pass orders for the
recovery of compensation.

It consists of the chairperson, an ex or current judge of Supreme Court or the Chief Justice of a
High Court, and two other persons with a professional experience of not less than twenty-five
years in, competition matters, including competition law and policy, international trade,
economics, business, commerce, law, finance, accountancy, management, industry, public
affairs, administration or in any other matter which in the opinion of the Central Government,
may be useful to the Appellate Tribunal, appointed by the central government of India.

The Chairperson or a Member of the Appellate Tribunal shall hold office for a term of five years
and shall be eligible for re-appointment. Provided that no Chairperson or other Member of the
Appellate Tribunal shall hold office after he has attained the age of sixty-eight years or sixty-five
five years respectively.