Why in the news?

The Competition Commission of India (CCI) invites proposals for conducting a Market Study on Artificial Intelligence (AI) and its impact on competition.

About Competition Commission of India (CCI)

• The CCI is a statutory body established under the Competition Act, 2002 by the Vajpayee government.
• It aims to promote and sustain competition, protect consumer interests, and ensure freedom of trade.
• The commission operates as a quasi-judicial body, providing opinions to statutory authorities and adjudicating cases.
• Evolution of CCI:
  • Established in response to the need for promoting competition and private enterprise, especially after India’s economic liberalization in 1991.
  • Replaced the Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act) based on recommendations from the Raghavan Committee.

Key Features of the Competition Act:

• Passed in 2002 and subsequently amended to align with modern competition laws.
• Prohibits anti-competitive agreements, abuse of dominant position, and regulates combinations causing adverse effects on competition.
• Established the Competition Commission of India and the Competition Appellate Tribunal.
• The National Company Law Appellate Tribunal (NCLAT) replaced the Competition Appellate Tribunal (COMPAT) in 2017.

Composition of CCI:

• CCI comprises a Chairperson and 6 Members appointed by the Central Government.
• Members must possess significant expertise in various domains such as law, economics, finance, and management or qualified to be a judge of a High Court.

Key Functions of CCI:

1. Regulating Mergers and Acquisitions:

• Ensuring mergers and acquisitions do not harm competition in the market.
• Preventing monopolistic practices and promoting fair competition.

2. Investigating Anti-Competitive Practices:

• Probing into cartels, collusive behavior, and abuse of dominant market positions.
• Taking action against entities engaging in anti-competitive practices.

3. Market Studies and Research:

• Conducting studies to assess market dynamics and competition levels.
• Identifying trends and issues affecting competition in various sectors.

4. Handling Complaints:

• Addressing complaints filed by individuals or businesses regarding anti-competitive behavior.
• Initiating investigations based on credible complaints received.

5. Adjudication and Penalty Imposition:

• Adjudicating cases related to competition law violations.
• Imposing penalties on entities found guilty of breaching competition regulations.

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