Duties, powers and functions of the Competition Commission

1. Duties: section 18

Subject to the Act, the Commission’s duty is to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade carried on by other participants, in markets in India. It may enter into memoranda or arrangements with foreign agencies with Central Government approval and, since 2023, with any statutory authority or Government department.

2. How a case starts: section 19

The Commission may inquire into an alleged contravention of section 3(1) or 4(1) (section 19(1)):

• on its own motion (suo motu);
• on information from any person, consumer or their association, or trade association, with the prescribed fee; or
• on a reference from the Central Government, a State Government or a statutory authority.

Since 2023, information or a reference must be filed within three years of the cause of action, unless delay is condoned for sufficient cause. Any person may inform; the informant need not show personal injury (Samir Agrawal v. CCI, 2020 INSC 700). Section 19(3) to (7) give the factors for AAEC, dominance and the relevant market. For combinations, section 20 gives the parallel power.

3. The procedure: section 26

• Prima facie opinion (section 26(1)): if a prima facie case exists, the Commission directs the Director General to investigate. If not, it closes the matter (section 26(2)). It may decline matters already decided on substantially the same facts (section 26(2A), 2023).
• DG report (section 26(3)); further investigation and a supplementary report may be directed (section 26(3A), (3B)).
• If the DG finds no contravention, objections are invited and the Commission either closes the matter or directs further investigation or inquiry (section 26(5) to (7)). If the DG finds a contravention, the Commission inquires further (section 26(8)).
• Show-cause notice and hearing before a final order (section 26(9), 2023).

In Competition Commission of India v. Steel Authority of India Ltd., 2010 INSC 587, (2010) 10 SCC 744, the Supreme Court held that a direction to investigate under section 26(1) is an administrative, preparatory step: it determines no rights, the parties need not be heard before it, and it is not appealable. The Commission may in its discretion invite the parties at that stage.

4. Inquiry powers: sections 35 and 36

The Commission is guided by natural justice and regulates its own procedure (section 36(1)). It has the powers of a civil court under the CPC for summoning and examining on oath, discovery and production of documents, receiving evidence on affidavit, issuing commissions, and requisitioning public records (section 36(2)). It may call experts (section 36(3)) and direct any person to produce documents or furnish information to the DG or Secretary (section 36(4)). Parties may appear in person or through advocates, chartered accountants, company secretaries or cost accountants, and since 2023 may call experts (section 35).

5. Interim orders: section 33

Where during an inquiry the Commission is satisfied that an act in contravention of section 3(1), 4(1) or 6 has been committed and continues, or is about to be committed, it may by order temporarily restrain any party from carrying on the act until the conclusion of the inquiry or further orders, without notice where it deems it necessary. Before 2007 the section spoke of a “temporary injunction” and applied Order XXXIX CPC; the substance is the same.

SAIL laid down the conditions: the power is to be used sparingly and in exceptional circumstances; the Commission must record a finding that the contravention has been, is being or is about to be committed; it must be satisfied that it is necessary to restrain the party; and the record must show that not doing so would cause irreparable and irretrievable damage or have an adverse effect on competition. The order must give reasons and be short-lived. An interim order is appealable (section 53A(1)(a)).

6. Final orders: sections 27, 28 and 31

On finding a contravention of section 3 or 4, the Commission may (section 27):

• (a) direct the parties to discontinue and not re-enter the agreement or discontinue the abuse;
• (b) impose a penalty up to 10 per cent of the average turnover or income for the last three years (cartels: up to three times profit or 10 per cent of turnover for each year of continuance, whichever is higher), on global turnover since 2024;
• (d) direct that agreements stand modified;
• (e) direct compliance with other orders, including costs;
• (g) pass any other order or direction; and act against other group members responsible.

It may order the division of a dominant enterprise (section 28) and, for combinations, approve, modify or block (section 31).

7. After the order: sections 38 and 39

Rectification (section 38): to correct a mistake apparent from the record, the Commission may amend any order, on its own motion or when a party points it out, but it may not amend the substantive part of the order. The old power of review (section 37) was omitted in 2007, so rectification is the only route back to the Commission; a party who disputes the merits must appeal. Recovery (section 39): unpaid penalties are recovered as regulations provide, or through the income-tax authorities as arrears of tax.

8. Extra-territorial jurisdiction and sector regulators

• Section 32: the Commission may inquire into an agreement, abuse or combination even though it was made or took place outside India, or a party is outside India, if it has or is likely to have an AAEC in the relevant market in India.
• Sections 21 and 21A: a statutory authority may refer to the Commission an issue that its decision may contravene the Act, and the Commission may refer to a statutory authority an issue under the law that authority administers; the opinion is given within 60 days and must be considered with reasons.
• In Competition Commission of India v. Bharti Airtel Ltd., 2018 INSC 1154, (2019) 2 SCC 521, Reliance Jio alleged that incumbent telecom operators acted as a cartel in denying it points of interconnection. The Court held that the CCI’s jurisdiction is not ousted by the sector regulator, but that where the dispute turns on obligations under the telecom licence and TRAI regulations, TRAI must first decide those jurisdictional facts; until it does, CCI’s intervention was premature.

9. Settlements, commitments, guidelines and advocacy

Since 6 March 2024 a party under inquiry for a vertical agreement or abuse of dominance may offer commitments (after the section 26(1) order and before the DG report, section 48B) or seek a settlement (after the DG report and before the final order, section 48A). Orders under either are not appealable, and they are revoked if the party fails to comply or did not make full disclosure (section 48C). The Commission must publish penalty guidelines and give reasons for departing from them (section 64B). Competition advocacy under section 49 is its non-enforcement function.

How this is examined

January 2026 asked for the “powers and functions” of the Commission twice (Units IV and V), with notes on “temporary injunction in competition litigation” (section 5 here) and the inquiry powers in the abuse of dominance essay. June 2025 asked for powers and duties and a note on “rectification of orders” (section 7). The 6-mark notes each come from one section of this note; the essay from all of it.