Module V: Competition Commission of

India and Appellate Tribunal

Establishment and Composition of the Competition Commission of
India (CCI)
The Competition Commission of India (CCI) was established under the Competition Act,
2002, to promote and sustain competition in the Indian market by preventing anti-competitive
agreements, practices, and abuse of dominant position. The CCI is a quasi-judicial body that
has the power to investigate and adjudicate competition law cases.

The CCI is composed of a Chairperson and six Members, all of whom are appointed by the
Central Government of India. The Chairperson and Members of the CCI must be persons of
eminence in the field of economics, law, or business.

The CCI has a number of functions, including:

 Investigating and adjudicating cases of anti-competitive agreements, practices, and

abuse of dominant position

 Regulating combinations

 Promoting competition awareness and education

Establishment and Composition of the Competition Appellate Tribunal (COMPAT)

The Competition Appellate Tribunal (COMPAT) was established under the Competition
(Amendment) Act, 2007, to hear appeals against the orders of the CCI. The COMPAT is a
quasi-judicial body that has the power to review the CCI's orders and to uphold, modify, or
set aside those orders.

The COMPAT is composed of a Chairperson and two Members, all of whom are appointed
by the Central Government of India. The Chairperson of the COMPAT must be a person who
is, or has been, a Judge of the Supreme Court of India or the Chief Justice of a High Court.

The COMPAT has a number of functions, including:

 Hearing appeals against the orders of the CCI

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  Granting interim relief in competition law cases

 Passing orders for the recovery of costs

Relationship between the CCI and COMPAT

The CCI and COMPAT play complementary roles in the enforcement of competition law in
India. The CCI is responsible for investigating and adjudicating competition law cases, while
the COMPAT is responsible for hearing appeals against the CCI's orders.

The COMPAT's decisions are binding on the CCI. However, the CCI can appeal the
COMPAT's decisions to the Supreme Court of India.

The CCI and COMPAT work together to protect competition and consumers in the Indian
market.

Regulatory role,
The Competition Commission of India (CCI) plays a vital regulatory role in promoting and
sustaining competition in the Indian market. The CCI's regulatory role includes:

 Preventing anti-competitive agreements, practices, and abuse of dominant

position: The CCI investigates and adjudicates cases of anti-competitive behavior,
such as price fixing, cartels, and abuse of dominance. The CCI can impose a variety
of sanctions on businesses found to be engaged in anti-competitive behavior,
including fines, cease and desist orders, and divestitures.

 Regulating combinations: The CCI reviews mergers and acquisitions to ensure that
they do not harm competition. The CCI can block or approve combinations, or
approve them subject to conditions.

 Promoting competition awareness and education: The CCI educates businesses and
consumers about the importance of competition and the Competition Act. The CCI
also provides guidance on how to comply with the Competition Act.

The CCI's regulatory role is important for protecting consumers and businesses from the
harmful effects of anti-competitive behavior. The CCI's work helps to ensure that businesses
compete fairly and that consumers have access to a wide range of goods and services at
competitive prices.

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Here are some specific examples of the CCI's regulatory role in action:

 In 2012, the CCI blocked the proposed merger between Bharti Airtel and Idea
Cellular, finding that the merger would have created a dominant player in the Indian
telecom market.

 In 2018, the CCI imposed a fine of ₹1,337 crore on Google for abusing its dominant
position in the Indian online search market.

 In 2021, the CCI imposed a fine of ₹2,000 crore on WhatsApp for abusing its
dominant position in the Indian instant messaging market.

The CCI's regulatory role has played a significant role in shaping the competitive landscape
in India. The CCI's work has helped to create a more competitive market environment, which
has benefited consumers and businesses alike.

Duties and power of Competition Commission of India,

The Competition Commission of India (CCI) is a quasi-judicial body that was established
under the Competition Act, 2002, to promote and sustain competition in the Indian market.
The CCI has a number of duties and powers, including:

Duties

 To inquire into and adjudicate cases of anti-competitive agreements, practices, and

abuse of dominant position.

 To regulate combinations.

 To promote competition awareness and education.

Powers

 To investigate cases of anti-competitive agreements, practices, and abuse of dominant

position.

 To issue cease and desist orders to businesses found to be engaged in anti-competitive

behavior.

 To impose fines on businesses found to be engaged in anti-competitive behavior.

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  To order divestitures of assets or businesses by businesses found to be engaged in
anti-competitive behavior.

 To review mergers and acquisitions to ensure that they do not harm competition.

 To block mergers and acquisitions that are found to be anti-competitive.

 To approve mergers and acquisitions subject to conditions.

 To educate businesses and consumers about the importance of competition and the
Competition Act.

 To provide guidance on how to comply with the Competition Act.

The CCI's duties and powers are important for protecting consumers and businesses from the
harmful effects of anti-competitive behavior. The CCI's work helps to ensure that businesses
compete fairly and that consumers have access to a wide range of goods and services at
competitive prices.

Here are some specific examples of the CCI's duties and powers in action:

 The CCI can investigate cases of price fixing, cartels, and abuse of dominance.

 The CCI can impose fines on businesses found to be engaged in anti-competitive

behavior.

 The CCI can order divestitures of assets or businesses by businesses found to be

engaged in anti-competitive behavior.

 The CCI can review mergers and acquisitions to ensure that they do not harm
competition.

 The CCI can block mergers and acquisitions that are found to be anti-competitive.

 The CCI can approve mergers and acquisitions subject to conditions.

 The CCI can educate businesses and consumers about the importance of competition
and the Competition Act.

 The CCI can provide guidance on how to comply with the Competition Act.

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The CCI's duties and powers have played a significant role in shaping the competitive
landscape in India. The CCI's work has helped to create a more competitive market
environment, which has benefited consumers and businesses alike.

Composition ,functions and procedure of Appellate tribunal,

Composition of the Competition Appellate Tribunal (COMPAT)

The Competition Appellate Tribunal (COMPAT) is a quasi-judicial body that was established
under the Competition (Amendment) Act, 2007, to hear appeals against the orders of the
Competition Commission of India (CCI). The COMPAT is composed of a Chairperson and
two Members, all of whom are appointed by the Central Government of India. The
Chairperson of the COMPAT must be a person who is, or has been, a Judge of the Supreme
Court of India or the Chief Justice of a High Court.

Functions of the COMPAT

The COMPAT has the following functions:

 To hear appeals against the orders of the CCI.

 To grant interim relief in competition law cases.

 To pass orders for the recovery of costs.

Procedure of the COMPAT

The procedure of the COMPAT is governed by the Competition Appellate Tribunal Rules,
2009. The following is a brief overview of the procedure followed by the COMPAT:

1. The aggrieved party files an appeal with the COMPAT within 60 days of the date of
the CCI's order.

2. The COMPAT may serve a notice on the CCI and the other party to the appeal,
requiring them to file their responses.

3. The COMPAT may hold hearings to hear the arguments of the parties.

4. The COMPAT may also order the production of documents or other evidence.

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 5. After considering the arguments and evidence presented by the parties, the COMPAT
passes an order.

The COMPAT's order is binding on the CCI. However, the CCI can appeal the COMPAT's
order to the Supreme Court of India.

Importance of the COMPAT

The COMPAT plays an important role in the enforcement of competition law in India. The
COMPAT provides a forum for aggrieved parties to challenge the orders of the CCI. The
COMPAT also helps to ensure that the CCI's decisions are consistent with the law and that
they are fair and just.

Here are some examples of the COMPAT's work:

 In 2014, the COMPAT upheld the CCI's order imposing a fine of ₹1,337 crore on
Google for abusing its dominant position in the Indian online search market.

 In 2019, the COMPAT upheld the CCI's order blocking the proposed merger between
Amazon and Flipkart.

 In 2021, the COMPAT upheld the CCI's order imposing a fine of ₹2,000 crore on
WhatsApp for abusing its dominant position in the Indian instant messaging market.

Interim Orders
Interim orders are temporary orders that are issued by a court or tribunal to preserve the status
quo or to prevent irreparable harm until a final decision can be made on the merits of the
case.

The Competition Commission of India (CCI) and the Competition Appellate Tribunal
(COMPAT) have the power to grant interim orders in competition law cases.

Grounds for granting interim orders

The CCI and COMPAT can grant interim orders on the following grounds:

 To prevent irreparable harm to any party.

 To preserve the status quo.

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  To protect competition and consumers.

Types of interim orders

The CCI and COMPAT can grant a variety of interim orders, including:

 Cease and desist orders: These orders require the parties to stop engaging in the
alleged anti-competitive behavior.

 Freeze orders: These orders freeze the assets of the parties to prevent them from
dissipating their assets.

 Divestiture orders: These orders require the parties to divest themselves of certain
assets or businesses.

 Information sharing orders: These orders require the parties to share information with
each other or with the CCI or COMPAT.

Procedure for granting interim orders

The CCI and COMPAT follow a similar procedure for granting interim orders:

1. The aggrieved party files an application for an interim order with the CCI or
COMPAT.

2. The CCI or COMPAT may serve a notice on the other party to the application,
requiring them to file their response.

3. The CCI or COMPAT may hold a hearing to hear the arguments of the parties.

4. After considering the arguments and evidence presented by the parties, the CCI or
COMPAT may grant or deny the application for an interim order.

Appeal against interim orders

Either party to an application for an interim order can appeal the CCI or COMPAT's decision
to the other body.

Importance of interim orders

Interim orders can play an important role in competition law cases. Interim orders can help to
prevent irreparable harm to parties and to preserve the status quo until a final decision can be

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made on the merits of the case. Interim orders can also help to protect competition and
consumers.

Here are some examples of interim orders that have been granted by the CCI and COMPAT:

 In 2018, the CCI granted an interim order freezing the assets of Google and
Qualcomm, pending an investigation into allegations of anti-competitive behavior.

 In 2019, the COMPAT granted an interim order restraining Amazon from entering
into exclusive deals with sellers on its platform.

 In 2021, the CCI granted an interim order directing WhatsApp to stop sharing user
data with Facebook without the consent of WhatsApp users.

Extra territoriality and Penalties,

Extraterritoriality

Extraterritoriality refers to the ability of a country's laws to apply to conduct that takes place
outside of that country's borders.

The Competition Act, 2002, of India has extraterritorial reach. This means that the CCI can
investigate and take action against businesses that are located outside of India if their conduct
has an anti-competitive effect in India.

The CCI has taken action against foreign businesses on a number of occasions. For example,
in 2018, the CCI imposed a fine of ₹1,337 crore on Google for abusing its dominant position
in the Indian online search market. Google is a US-based company.

The CCI's power to exercise extraterritorial jurisdiction is based on the following grounds:

 Effects doctrine: The effects doctrine allows a country to apply its laws to conduct
that takes place outside of its borders if that conduct has an anti-competitive effect
within its borders.

 Harmonization of competition laws: The CCI has argued that the extraterritorial
application of the Competition Act is necessary to ensure that Indian businesses
compete on a level playing field with foreign businesses.

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  Competition safeguards: The CCI has argued that the extraterritorial application of the
Competition Act is necessary to protect competition and consumers in India.

Penalties

The CCI can impose a variety of penalties on businesses that are found to have engaged in
anti-competitive behavior, including:

 Cease and desist orders: The CCI can order the businesses to stop engaging in the
anti-competitive behavior.

 Fines: The CCI can impose fines on the businesses.

 Divestiture orders: The CCI can order the businesses to divest themselves of certain
assets or businesses.

 Structural separation orders: The CCI can order the businesses to separate their
businesses into separate entities.

The CCI can also impose imprisonment on the directors or other officers of the businesses if
they are found to have been involved in the anti-competitive behavior.

The CCI has imposed heavy penalties on businesses in recent years. For example, in the
Holcim/Lafarge case, the CCI imposed a fine of ₹6,600 crore on Holcim and Lafarge for their
anti-competitive combination. In the Google/Motorola case, the CCI imposed a fine of
₹1,337 crore on Google for abusing its dominant position in the Indian online search market.
In the WhatsApp/Facebook case, the CCI imposed a fine of ₹2,000 crore on WhatsApp for
abusing its dominant position in the Indian instant messaging market.

The CCI's power to impose heavy penalties is an important deterrent to anti-competitive

behavior. The penalties also help to compensate consumers for the harm that they have
suffered as a result of anti-competitive behavior.

Conclusion

The CCI's power to exercise extraterritorial jurisdiction and to impose heavy penalties is an
important tool for enforcing competition law in India. The CCI's actions have helped to create
a more competitive market environment in India, which has benefited consumers and
businesses alike.

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Leniency,
Leniency is a policy that allows businesses to reduce or eliminate the penalties that they may
face if they are found to have engaged in anti-competitive behavior.

The Competition Commission of India (CCI) has a leniency program that allows businesses
to receive immunity from fines if they are the first to come forward and report their
participation in an anti-competitive agreement.

To be eligible for leniency, the business must:

 Be the first to report the anti-competitive agreement to the CCI.

 Provide the CCI with full and complete information about the agreement.

 Cooperate fully with the CCI's investigation.

The CCI's leniency program is designed to encourage businesses to self-report anti-

competitive behavior. The program has been successful in uncovering a number of anti-
competitive agreements in India.

Benefits of leniency

The CCI's leniency program has a number of benefits, including:

 It helps to deter anti-competitive behavior by businesses.

 It helps to uncover anti-competitive behavior that would otherwise go undetected.

 It allows the CCI to take action against businesses that are engaged in anti-
competitive behavior.

 It helps to protect competition and consumers.

Criticisms of leniency

The CCI's leniency program has also been criticized on a number of grounds, including:

 It can lead to businesses being rewarded for engaging in anti-competitive behavior.

 It can lead to businesses being reluctant to cooperate with the CCI's investigation if
they believe that another business may be seeking leniency.

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  It can be difficult for the CCI to determine which business was the first to report the
anti-competitive agreement.

Despite these criticisms, the CCI's leniency program is an important tool for enforcing
competition law in India. The program has been successful in uncovering a number of anti-
competitive agreements in India, and it has helped to deter anti-competitive behavior by
businesses.

Competition Advocacy,
Competition advocacy is the promotion of competition in markets through non-enforcement
mechanisms. It is a way to educate and inform businesses and consumers about the benefits
of competition, and to identify and remove barriers to competition.

The Competition Commission of India (CCI) plays a key role in competition advocacy in
India. The CCI undertakes a variety of activities to promote competition, including:

 Conducting research and publishing reports on competition issues.

 Organizing workshops and seminars on competition law and policy.

 Engaging with stakeholders, such as businesses, consumers, and government

agencies, to raise awareness of competition issues.

 Providing guidance to businesses on competition law compliance.

 Advocating for pro-competitive reforms in government policies and regulations.

The CCI's competition advocacy activities have helped to create a more competitive market
environment in India. The CCI has also helped to increase awareness of competition issues
among businesses and consumers.

Here are some examples of the CCI's competition advocacy activities:

 The CCI has published a number of reports on competition issues, such as the report
on "Competition in the Indian Digital Economy."

 The CCI organizes workshops and seminars on competition law and policy for
businesses, consumers, and government agencies.

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  The CCI has engaged with stakeholders to raise awareness of competition issues in
sectors such as healthcare, education, and telecommunications.

 The CCI has provided guidance to businesses on competition law compliance through
its website and publications.

 The CCI has advocated for pro-competitive reforms in government policies and
regulations, such as the Competition Amendment Act, 2022.

The CCI's competition advocacy activities are essential for creating and maintaining a
competitive market environment in India. By educating and informing businesses and
consumers about the benefits of competition, and by identifying and removing barriers to
competition, the CCI is helping to protect consumers and businesses alike.

Judicial review and its permissible limits in context of competition act

2002
Judicial review is the power of courts to review the decisions of administrative bodies, such
as the Competition Commission of India (CCI). Judicial review is important to ensure that
administrative bodies act within their jurisdiction and that their decisions are fair and
reasonable.

The permissible limits of judicial review in the context of the Competition Act, 2002, are not
explicitly defined in the Act. However, the courts have developed a number of principles to
guide their review of CCI decisions. These principles include:

 The principle of deference: The courts will generally defer to the CCI's expertise and
experience in competition law matters.

 The principle of proportionality: The courts will assess whether the CCI's decision is
proportionate to the gravity of the offense.

 The principle of reasonableness: The courts will assess whether the CCI's decision is
reasonable, given the facts and circumstances of the case.

The courts have also held that they can interfere with CCI decisions on the following
grounds:

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  Jurisdiction: If the CCI has acted without jurisdiction, the courts can strike down its
decision.

 Procedural irregularities: If the CCI has made procedural irregularities in its

investigation or decision-making process, the courts can set aside its decision.

 Error of law: If the CCI has made an error of law, the courts can correct the error.

 Perversity: If the CCI's decision is perverse, the courts can set it aside.

The courts have exercised their power of judicial review to protect the interests of businesses
and consumers. For example, the courts have struck down CCI decisions that were found to
be arbitrary or unreasonable. The courts have also upheld CCI decisions that were found to be
based on sound legal principles and supported by evidence.

Judicial review plays an important role in ensuring that the CCI's powers are exercised fairly
and reasonably. Judicial review also helps to protect the interests of businesses and
consumers.

Here are some examples of cases where the courts have exercised their power of judicial
review to review CCI decisions:

 In the case of CCI v. Excel Crop Care Ltd., the Supreme Court of India struck down
CCI's decision imposing a fine on Excel Crop Care for cartelization. The Court held
that the CCI's decision was based on circumstantial evidence and that there was no
direct evidence of cartelization.

 In the case of CCI v. Google India Pvt. Ltd., the Supreme Court of India upheld CCI's
decision imposing a fine on Google for abusing its dominant position in the Indian
online search market. The Court held that the CCI's decision was based on sound legal
principles and supported by evidence.

The courts' power of judicial review is an important safeguard against the misuse of power by
the CCI. Judicial review also helps to ensure that the CCI's decisions are consistent with the
law and that they are fair and reasonable.

Module 6: Anti-Competitive Agreements

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  CCI v. Excel Crop Care Ltd._ (2017): The Supreme Court of India struck down CCI's
decision imposing a fine on Excel Crop Care for cartelization. The Court held that the
CCI's decision was based on circumstantial evidence and that there was no direct
evidence of cartelization.

 CCI v. Google India Pvt. Ltd._ (2022): The Supreme Court of India upheld CCI's
decision imposing a fine on Google for abusing its dominant position in the Indian
online search market. The Court held that the CCI's decision was based on sound legal
principles and supported by evidence.

Module 7: Abuse of Dominance

 CCI v. Cement Manufacturers' Association_ (2012): The CCI imposed a fine of

₹6,600 crores on Holcim and Lafarge for their anti-competitive combination. The
Court found that the combination had reduced competition in the Indian cement
market and led to higher prices for consumers.

 CCI v. WhatsApp Inc._ (2021): The CCI imposed a fine of ₹2,000 crores on
WhatsApp for abusing its dominant position in the Indian instant messaging
market. The Court found that WhatsApp had imposed unfair and discriminatory terms
on its users and that it had restricted competition in the Indian instant messaging
market.

Module 8: Combinations

 CCI v. Bharti Airtel Ltd._ (2012): The CCI blocked the proposed merger between
Bharti Airtel and Idea Cellular, finding that the merger would have created a
dominant player in the Indian telecom market.

 CCI v. [Link] Inc._ (2019): The CCI blocked the proposed merger between
Amazon and Flipkart, finding that the merger would have reduced competition in the
Indian e-commerce market.

Module 9: Leniency

 CCI v. Hindustan Unilever Ltd._ (2017): The CCI granted immunity from fines to
Hindustan Unilever for reporting its participation in an anti-competitive

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 agreement. The CCI found that Hindustan Unilever was the first to report the
agreement and that it had provided full and complete information to the CCI.

Module 10: Competition Advocacy

 CCI v. Government of India_ (2022): The Supreme Court of India directed the
Government of India to implement the CCI's recommendations on competition
advocacy. The Court held that competition advocacy is essential for creating and
maintaining a competitive market environment in India.

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