GS 2: Governance

Why in News?

The Competition Commission of India (CCI) has started a probe against Google for alleged anti-competitive practices with respect to its popular Android platform for mobile phones, an official said on Friday.

Need of Competition Commission of India:

• Competition is the best means of ensuring that the ‘Common Man’ or ‘Aam Aadmi’ has access to the broadest range of goods and services at the most competitive prices. With increased competition, producers will have maximum incentive to innovate and specialize.
• This would result in reduced costs and wider choice to consumers. A fair competition in market is essential to achieve this objective.
• Goal is to create and sustain fair competition in the economy that will provide a ‘level playing field’ to the producers and make the markets work for the welfare of the consumers.

The Competition Act:

• The Competition Act, 2002, as amended by the Competition (Amendment) Act, 2007, follows the philosophy of modern competition laws.
• The Act prohibits anti-competitive agreements, abuse of dominant position by enterprises and regulates combinations (acquisition, acquiring of control and M&A), which causes or likely to cause an appreciable adverse effect on competition within India.

Competition Commission of India:

• The objectives of the Act are sought to be achieved through the Competition Commission of India (CCI), which has been established by the Central Government
• CCI consists of a Chairperson and 6 Members appointed by the Central Government.
• It is the duty of the Commission to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and 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.