Context:
News article in Indian Express titled ‘Competition Commission of India and the commitment to shaping a fair market environment’
Competition Commission of India:
- Act – Competition Act, 2002
- Status – Quasi-judicial body
- Aim –
- Consumer welfare
- Ensure fair and healthy competition in economic activities
- Implement competition policies for the most efficient utilization of economic resources.
- Ensure smooth alignment of sectoral regulatory laws in tandem with the competition law.
- Effectively carry out competition advocacy
- Composition – 1 Chairperson and 6 Members
- Eligibility – 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 and professional experience of not less than 15 years in international trade, economics, business, commerce, law, finance etc.
- Functions –
- To eliminate practices having adverse effect on competition
- To give opinion on competition issues on a reference received from a statutory authority established under any law
Competition Act, 2002:
- A law governing commercial competition in India
- Replaced – Monopolies and Restrictive Trade Practices Act, 1969
- Important definitions –
- Cartel – An association of producers, sellers who limit control distribution, sale or promotions on goods through an arrangement previously made.
- Dominant position – A position of power held by an enterprise in the related market that enables it to function freely and influence the market.
- Predatory pricing – Reducing the price of goods and services to well below the cost of production in order to eliminate competition.
- Rule of reason – Interpretation of an activity on the basis of market impact on competition and on the consumer.
Source: The Indian Express
Previous Year Question
With reference to the Delimitation Commission, consider the following statements:
1. The orders of the Delimitation Commission cannot be challenged in a Court of Law.
2. When the orders of the Delimitation Commission are laid before the Lok Sabha or State Legislative Assembly, they cannot affect any modifications in the orders.
Which of the statements given above is/are correct?
[UPSC Civil Services Exam – 2012 Prelims]
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (c)
