What is the full form of CCI?

Introduction

Competition Commission of India (CCI) was formed under the Competition Act which was established in 2002. After globalisation, monetisation and liberalisation, the Indian Government decided to open the Indian market.

The main purpose of this commission is to provide assurance that there remains healthy competition in the Indian market. It helps to strengthen economic activities. This commission helps to make sure that there is no abuse from any dominant business or company and that every business, be it small or big, gets the chance to perform equally.

Competition Commission of India – Objectives

The CCI or the Competition Commission of India, founded in 2002 under the Competition Act is a judicial body that looks after the Indian market.

From eliminating any adverse effect of monopoly from the Indian market this Commission run by the Central Government of India assists in creating public awareness and providing training on various competition issues. The CCI also does some other things. Those are as follows −

• It provides protection to the consumers by protecting their interests.

• The CCI engages with various industries, stakeholders, government and consumers for the smooth running of the competitive environment.

• It also gets engaged with enforcement by considering transparency, wisdom and professionalism.

How was the Competition Commission of India Formed?

After the Competition act formed in 2002, the quasi-judicial part, called CCI or Competition Commission of India was formed. With one chairperson and six other appointed members by the Central Government, this body of the Competition act has become essential for the Indian market. Here are some points one should know about the composition of the Competition Commission of India −

• The Central Government appoints the employees of this Commission. It usually has one chairperson and six appointed members.

• The CCI prefers to set some goals for anyone who wants to be a part of this body. For example, the Chairperson must be someone who has at least fifteen years of experience in trade, commerce, law, public affairs, managing various industries, etc. Or the Chairperson should also be qualified to be a judge of the High Court of any state.

• The members or the Chairperson should be a person having integrity and efficiency to fulfil their job.

• The six members and the Chairperson must be the full time member of the CCI.

What is the Competition Act, 2002?

After the Indian Government decided to open the Indian market for international trade in 1991, the Parliament passed the Competition Act in 2002. According to this act, this law regulates the business-based competition in India. By establishing this Act, the Indian Government put a strong hold on erstwhile Monopolies and various trade practices that were restricted.

Its main objective was to provide support to any business organisation that has been suffering from monopoly. That is how it tried to suppress the adverse effect of business- based competition in the Indian market.

Why Do We Need Competition Laws?

The Competition Law has boosted the Indian economy by regulating the Indian market with an unbiased attitude. But to understand its necessity closely, one must acknowledge some of its benefits. Here are those −

• Encourages The Domestic Organisations − The main necessity of the Competition Act is that it aims to provide equal opportunity to every organisation. It stops the spreading of monopoly and thus provides unbiased opportunity to the smaller business to grow. It assures that the small industries flourish and stand in a healthy and competitive market.

• Free Enterprise − The Competition Act provides a free market concept in India. It means the Indian market is driven by supply and demand and it must happen without any Government organisation’s involvement. So, it cannot decide the price or the profit margin, providing a free enterprise to the businesses.

• Helps to Avoid Business Distinction − The presence of the Competition Act helps to provide protection to the small businesses, meaning it does not let any bigger business giant to abuse its position and try to stop the growth of a growing company.

Functions and Challenges

The CCI, under the Competition Act of 2002 has many functions. Some of them are as follows −

• It assures the proper use of the national resources.

• The CCI serves a basic responsibility of taking care of the customers’ benefits.

• By providing equal opportunity to the various organisations, the CCI encourages the economic growth of the country. It also forces the Indian market to indulge in a healthy competition.

• The CCI converse with other regulatory bodies to make sure the laws imposed by the Competition Act are properly utilised.

Even though the CCI is a renowned Government body and acts on regulating the Indian market, it faces a number of challenges. Those are as follows −

• The most common problem the CCI faces is the constant changes in the business procedures. Based on the changes, the Commission has to outline its next steps, which can be a little stressful at times.

• As the CCI is a very active body in terms of India’s economic growth, there is a need to increase the quantity of members, which has not happened yet.

• Every emerging business is now digitalised. However, the CCI has been following the same outdated way of working, which is a setback for the Commission.

Conclusion

The CCI or the Competition Commission of India is a quasi-judicial part of the Indian Government. It regulates the business sectors and provides the much-needed protection to smaller businesses from the big business organisations. By doing so, the CCI has been successful in letting the smaller organisation grow.

FAQs

Q1. Can monopoly grow in the absence of CCI?

Ans: Yes. Since the CCI is the only body that controls the growth of monopoly, the same will grow in CCI’s absence.

Q2. Can the CCI ask questions about the agreements produced by various enterprises?

Ans: Yes. The CCI has the right to ask quotations about agreements produced by enterprises.

Q3. Can the CCI make necessary regulations according to the Competition Act?

Ans: Yes. The CCI can make regulations according to the Competition Act.