Competition advocacy

Competition Law · Unit V · Topic 17 of 18 · 5 min read

The Commission's non-enforcement role under section 49: policy references from the Central and State Governments, the non-binding opinion, awareness and training, competition culture after 2023, the link with references by and to sector regulators, market studies, and why advocacy matters in an economy where much restraint comes from the State.

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On this page

1. What advocacy means
2. Section 49: the text
3. Related powers that support advocacy
4. How the Commission carries it out
5. Why advocacy matters
6. Limitations
How this is examined

Cases checked to exist. Read the judgment before quoting a holding.

Every case cited here has been checked to exist — the citation resolves and names the right parties. The propositions attributed to each case have not been verified line by line against the judgment. Case names link through to the full judgment: read it before quoting a holding in an examination answer, and never carry a proposition from notes into court on trust.

The examinable core. Advocacy is the part of competition law that works by persuasion, not penalty. Section 49 has three sub-sections: (1) the Central or a State Government may refer a policy to the Commission for its opinion on the effect on competition, and the Commission gives its opinion within sixty days; (2) the opinion is not binding; (3) the Commission shall take suitable measures to promote competition advocacy, create awareness and impart training about competition issues, and since 2023 to promote competition culture.

1. What advocacy means

The International Competition Network describes competition advocacy as the activities of a competition authority, other than enforcement, aimed at promoting a competitive environment — mainly through its relations with other government bodies and by increasing public awareness of the benefits of competition. Two targets follow: governments, whose laws, licences, procurement rules and State enterprises often restrict competition more than private conduct does; and market participants and the public, who need to know the rules to obey them and to report breaches.

2. Section 49: the text

Section 49(1) — the Central Government, in formulating a policy on competition (including review of laws related to competition) or on any other matter, and a State Government, in formulating a policy on competition or any other matter, may make a reference to the Commission for its opinion on the possible effect of the policy on competition. The Commission shall give its opinion within sixty days, and the Government may then take such further action as it deems fit. State Governments were added by the 2007 amendment; the original section covered only the Central Government.
Section 49(2) — the opinion is not binding on the Central or State Government in formulating the policy.
Section 49(3) — the Commission shall take suitable measures for the promotion of competition advocacy or culture (the words “or culture” added in 2023), creating awareness and imparting training about competition issues.

Section 53(1) requires the Commission to report to the Central Government on its measures for the promotion of competition advocacy, awareness and training, and its annual report under section 53(2) includes its advocacy work.

3. Related powers that support advocacy

Section 21 — a statutory authority (a sector regulator) may refer to the Commission an issue that its decision may be contrary to the Act, and since 2023 may do so suo motu on any issue involving the Act or its objectives. The Commission’s opinion, within sixty days, must be considered and reasons recorded.
Section 21A — the converse: the Commission may refer to a statutory authority an issue under the Act that authority administers.
Section 18 proviso — memoranda or arrangements with foreign agencies (with Central Government approval) and, since 2023, with statutory authorities and Government departments.
Section 64B — the Commission may publish guidelines on the Act on request or on its own motion; they help firms comply but do not bind the Commission.

4. How the Commission carries it out

Opinions on policy and draft laws, when referred, and comments on proposed regulations of sector bodies.
Market studies — studies of particular sectors to understand how competition works and to recommend changes without opening a case. The CCI’s Market Study on E-commerce in India (2020) is an example; such studies often lead to self-correction by firms or to recommendations to the Government.
Public procurement — workshops for procurement officers on detecting bid rigging, since much cartel activity in India is found in government tenders (as in Excel Crop Care and Rajasthan Cylinders).
States — engagement with State Governments, whose licensing, mandi, transport and procurement rules frequently restrict entry.
Awareness and training — programmes for industry associations, chambers of commerce, universities, the bar and the judiciary; publications such as its newsletter Fair Play; compliance manuals for enterprises.

5. Why advocacy matters

Enforcement cannot touch the State as lawmaker. A licensing rule that limits the number of taxis, or a tender condition that excludes small bidders, is not an “agreement” or an abuse by an enterprise. Only advocacy reaches it.
It is preventive and cheap: changing a draft policy costs less than investigating its consequences for years.
It builds a compliance culture in a country where the competition law is relatively young and firms grew up under the MRTP and licensing regime.
It supports enforcement: an informed public and procurement officers produce better information under section 19.

6. Limitations

Section 49(1) references are optional (“may”); there is no duty on any Government to consult the Commission before making policy.
Opinions are not binding (section 49(2)).
The proposed National Competition Policy, which would have required competition assessment of new laws, was drafted around 2011 but has not been adopted.
Under section 55 the Commission is itself bound by the Central Government’s policy directions, which limits how far it can press a view against Government policy.

Do not confuse with section 64B or section 21. Section 49 is about Government policy and awareness; section 21 is a reference by a statutory authority in a proceeding or suo motu; section 64B is about guidelines. Name section 49 first and the others as related powers.

How this is examined

June 2025 set “Competition advocacy” as a 6-mark note in Unit V. Write the definition (section 1), the three sub-sections of section 49 (section 2), two of the activities (section 4) and one limitation (section 6). In an essay on the functions of the Commission, advocacy is the last paragraph after enforcement, and shows the examiner you know the Commission does more than penalise.

Now try the real questions: Competition Law past question papers.