GS3 💰 Indian Economy

Competition Commission of India (CCI)

/ˌkɒmpəˈtɪʃən kəˈmɪʃən əv ˈɪndiə/
The statutory body established under Section 7 of the Competition Act, 2002, comprising a Chairperson and not less than 2 and not more than 6 members (maximum 7), appointed by the Central Government. Constituted in 2003 and fully operational from 2009 (when the MRTP Act was repealed and the MRTP Commission dissolved). Current Chairperson: Ravneet Kaur (IAS 1988, Punjab cadre; appointed 23 May 2023; first woman to head CCI; also given additional charge as NFRA Chairperson for April–June 2025). The CCI enforces three pillars of competition law: (1) anti-competitive agreements (Section 3 — horizontal agreements presumed AAEC, vertical agreements under rule of reason); (2) abuse of dominant position (Section 4 — dominance itself is not prohibited, only its abuse); and (3) regulation of combinations (Sections 5-6 — mergers/acquisitions exceeding asset/turnover thresholds or the deal value threshold of Rs 2,000 crore introduced by the 2023 Amendment). The CCI has extra-territorial jurisdiction (Section 32) and its orders are appealable to the NCLAT and then the Supreme Court.

Context & Background

Landmark enforcement actions include: the Cement Cartel case (Rs 6,317 crore penalty on 11 companies, 2012/2016); Google Android cases (Rs 1,337 crore + Rs 936 crore for abuse of dominance in mobile ecosystem and Play Store billing, 2022); and airline fuel surcharge cartel. The Competition (Amendment) Act, 2023 — based on the Competition Law Review Committee (2019) recommendations and effective from 10 September 2024 — introduced the Deal Value Threshold (Rs 2,000 crore for transactions where the target has substantial business operations in India), hub-and-spoke cartel recognition, settlement and commitment mechanisms, reduced review timelines (150 days from 210), global turnover-based penalties, and enhanced leniency provisions. The CCI replaced the MRTP Commission, which operated under the Monopolies and Restrictive Trade Practices Act, 1969 — a command-economy-era law recommended for replacement by the Raghavan Committee (2000).

UPSC Exam Relevance

GS3 Economy — Prelims: CCI composition (1 + max 6 members), Competition Act 2002, MRTP Act replaced, three pillars, appeals to NCLAT, combination thresholds, 2023 Amendment (DVT Rs 2,000 crore, 150 days review, hub-and-spoke); Mains: CCI's effectiveness in the digital economy, deal value threshold and "killer acquisitions," should India have a more adversarial or settlement-oriented competition enforcement model, balance between promoting competition and protecting consumers.
Prelims 2026 Key
Ujiyari Ujiyari — Current Affairs