COMPETITION
COMMISSION OF INDIA - POLITY
News:
Lok Sabha passes
Competition Amendment Bill without debate amid disruptions
What's
in the news?
●
Amid disruptions and sloganeering, the Lok
Sabha passed an amendment to the Competition Act and introduced the Forest
Conservation (Amendment) Bill and then referred it to a joint select committee.
Key
takeaways:
●
The Lok Sabha cleared the Competition
(Amendment) Bill, 2022, aimed at bringing in greater regulation of corporates,
particularly Big Tech firms, by introducing deal value threshold for approvals
by the Competition Commission of India (CCI), and enabling cartels to avail of
the CCI's settlement mechanism.
Changes
Proposed:
●
Now, the phrase "turnover" will
refer to the "global turnover derived from all the products and services
by a person or an enterprise" which, experts said, is a highly contentious
provision that will result in higher penalties for global multi-product
companies.
●
The introduction of deal value thresholds
will bring transactions involving 'asset lite' and 'low revenue' companies,
under the CCI's scrutiny".
●
Moreover, the settlements and commitments
mechanism would ensure swift correction of anti-competitive behaviour and
practices and spare "willing and legally compliant companies" to face
the rigours of an extensive investigation.
Competition
Commission of India:
●
Competition Commission of India is a statutory body responsible for
enforcing the objectives of the Competition Act, 2002.
●
The Competition Act, 2002 prohibits
anti-competitive agreements, abuse of dominant position by enterprises and
regulates combinations (acquisition, acquiring of control and Merger and
acquisition), which causes or likely to cause an appreciable adverse effect on
competition within India.
Composition:
●
It is a quasi-judicial body which has one chairperson and six other
members.
●
They will all be appointed by the Central Government.
●
The Chairperson and members shall be a
person of ability, integrity and standing and who, has been, or is qualified to
be a judge of a High Court, or, has special knowledge of, and professional
experience of not less than fifteen years in international trade, economics,
business, commerce, law, finance, accountancy, management, industry, public
affairs, administration or in any other matter.
Duty
of the Commission:
●
To eliminate practices having adverse
effects on competition.
●
Promote and sustain competition.
●
Protect the interests of consumers.
●
Ensure freedom of trade in the markets of
India.
●
The Commission is also required to give
opinion on competition issues on a reference received from a statutory
authority established under any law and to undertake competition advocacy,
create public awareness and impart training on competition issues.
Key
takeaways:
●
The appeals from CCI goes to National Company Law Appellate Tribunal
(NCLAT) constituted under the Companies Act, 2013.