One of the main requirements for growth in an economy is the ease and freedom of trade. Firms should be able to enter the market easily and compete without any hinderances. So it is necessary there are no unfair practices but fair competition in the market. The Competition Commission of India (CCI) ensures the same. Let us take a look.
Competition Commission of India (CCI)
The CCI is a statutory body corporate that was established by the government on 14th October 2003. So it is an artificial person that has perpetual succession. The Central Government will appoint all its six members and the Chairperson forming the Board.
Now the main aim of the CCI is to implement the modern competition laws and philosophy of the Competition Act, 2002. It ensures that there are no unfair practices in the market that have a negative impact on healthy competition. This is because healthy competition is good for the consumers of a market. Monopolistic competition or other unfair practices have an adverse effect on economic growth.
Objectives of the CCI
- Prevent policies and practices which have an adverse effect on constructive competition in the economy
- Promote and help sustain healthy competition in the market
- Look after the interest of the consumers
- Create awareness and advocate for fair competition practices
- And finally, ensure freedom of trade in the market
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Role of the CCI
The preamble of the Competiton Act focuses on the development of the economy and the country by avoiding unfair competition practices and promoting constructive competition. To achieve these objectives, the CCI attempts to do the following activities and practices,
- Ensure that the markets work for the benefits of the consumers, so the welfare of the consumers is the main priority.
- Economic activities are promoting fair competition in the market for growth and prosperity.
- Implement the competition practices and policies of the Competition Act. The aim is the best possible utilization of resources by embracing these policies.
- Another role of the CCI is to ensure interaction and cooperation with the other regulating authorities in the economy. This will ensure that the sectoral regulatory laws are in agreeable with the competition laws.
- One important role of the CCI is to carry out advocacy about competition and competition laws. It aims to educate ministries, state governments, regulators, and other authorities about the modern concepts of competition. And it does so by conducting workshops, seminars, publishing papers, etc.
Role of CCI as a Business Facilitator
Any economy thrives when there are free trade and fair competition in the market. Unfair competition practices like monopolies, cartels, etc. thwart the growth of smaller firms and businesses which are essential to the growth of an economy. The CCI protects such businesses from unfair competition and its adverse effects. It also ensures that the companies at fault are penalized and discouraged from such practices in the future.
By promoting competition it also benefits the consumers. The CCI will ensure there is no dominance of a few firms on the market. And both the small and big firms can co-exist peacefully in the economy.
Solved Question on CCI
Q: Competition can be both direct and indirect. True or False?