What is the issue ?
- The Union Government has constituted a Competition Law Review Committee to review the Competition Act, 2002.
- The Committee will be headed by Injeti Srinivas, Secretary of the Union Ministry of Corporate Affairs.
Why is this being done now ?
The Competition Act was passed in the year 2002 and the Competition Commission of India was set up as a follow up to the Act. The Commission started functioning from 2009 and contributed immensely towards the development of competition and fair play practices in the Indian market.
The Competition Act lays the ground rules for fair trade practices and prohibits practise of dominance, bid rigging, predatory pricing, and mergers of companies that have adverse effect on competition.
During the past nine years, the size of the Indian Economy has grown immensely and India is today amongst the top five Economies in the World and is expected to grow further.
Considering this, the government felt the need of strengthening the Competition Law and re-calibrate it to promote best practices which enable citizens to achieve their aspirations and subsequently, the Committee was formed.
Mandate or Terms of Reference of the Committee :
- To review the Competition Act and its rules and regulations to change business environment and bring necessary changes, if required
- To look into international best practices in the competition fields, especially anti-trust laws, merger guidelines and handling cross border competition issues
- To study other regulatory regimes, institutional mechanisms and government policies which overlap with the Competition Act
- Any other matters related to competition issue and considered necessary by the Committee.
- The Committee will submit its report within three months from the date of its first meeting.