Competition Commission of India (CCI): Composition & Powers
1. Composition of the Commission (Sections 7 - 15)
The Competition Commission of India (CCI) was established as an autonomous body corporate headquartered in New Delhi:
Institutional Framework of the Competition Commission of India
Composition (Sec 8)
Consists of a **Chairperson** and not less than **2** and not more than **6** Members appointed by the Central Government on the recommendation of a Selection Committee.
Qualifications
Persons of ability and integrity with special knowledge and at least 15 years experience in economics, law, international trade, finance, or corporate management.
Term of Office
Hold office for a term of **5 years** from the date on which they enter upon office, eligible for reappointment until age 65 years.
2. Duties, Functions & Inquiry Powers of CCI
- Statutory Duties (Section 18): To eliminate practices having adverse effect on competition, promote and sustain competition, protect interests of consumers, and ensure freedom of trade.
- Inquiry Trigger (Section 19): CCI may inquire into alleged contraventions:
- Suo motu (on its own motion);
- On receipt of any information from any person or consumer association;
- On a reference made to it by the Central Government, State Government, or statutory regulatory authority (e.g., TRAI, RBI, IRDAI).
Procedural Investigation Pipeline of the CCI
Prima Facie View
CCI forms opinion under Sec 26(1)
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DG Investigation
Director General conducts factual inquiry
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Investigation Report
DG submits comprehensive report
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Hearing of Parties
Adversarial hearing before the Commission
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Final Order (Sec 27)
Cease-and-desist or financial penalty
3. Orders and Penalties of CCI (Section 27)
If the Commission finds contravention of Section 3 (anti-competitive agreements) or Section 4 (abuse of dominance), it may pass:
- Cease and Desist Order: Directing enterprise to discontinue and not re-enter into such agreement or discontinue abuse.
- Monetary Penalty: Impose penalty up to 10% of the average of the turnover for the last three preceding financial years.
- Cartel Penalties: In case of a cartel, impose penalty up to three times of its profit for each year of the continuance of such agreement or 10% of its turnover for each year, whichever is higher.
- Division of Dominant Enterprise (Section 28): Order the division of a dominant enterprise to ensure it does not abuse its dominance.
4. Appellate Framework: National Company Law Appellate Tribunal (NCLAT)
Under Chapter VIIIA (inserted in 2007, updated 2017), appeals against any direction, decision, or order passed by the CCI lie before the National Company Law Appellate Tribunal (NCLAT) within 60 days.
Any person aggrieved by any decision or order of the NCLAT may file an appeal before the Supreme Court of India within 60 days on substantial questions of law.