Context:
Draft issued by Competition Commission of India (CCI) seeks to reform methodology for determining costs associated with allegations of predatory pricing.
Competition Commission of India:
- Act – Competition Act, 2002 (replaced Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act)
- Status – Quasi-judicial body
- Ministry – Ministry of Corporate Affairs
- Aim – Ensure fair and healthy competition in economic activities and implement competition policies for the most efficient utilization of economic resources.
- Composition – 1 Chairperson and 6 Members appointed by Central Government
- 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
Predatory Pricing and Other Forms of Anti-Competitive Practices:
- Predatory Pricing: Selling goods or services at prices below production costs with the intent to eliminate competition.
- Price Fixing: Competitors agreeing to set prices at an artificially high level, rather than competing on price.
- Patent Misuse: Using patents to block competition, such as purchasing patents solely to sue other companies.
- Collusive Bidding: Companies collaborating to manipulate the outcomes of bidding processes, often in government or large corporate contracts.
- Tying and Bundling: Requiring customers to buy one product only if they also purchase another, leveraging market power in one product to gain an advantage in another.
Source: ET
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)