The Union Cabinet chaired by Prime Minister Shri Narendra Modi has given its approval for rightsizing the Competition Commission of India (CCI) from One Chairperson and Six Members (totalling seven) to One Chairperson and Three Members (totalling four) by not filling the existing vacancies of two Members and one more additional vacancy, which is expected in September, 2018 when one of the present incumbents will complete his term.

Benefits:

The proposal is expected to result in reduction of three Posts of Members of the Commission in pursuance of the Governments objective of "Minimum Government - Maximum Governance".

As part of the Governments objective of easing the mergers and amalgamation process in the country, the Ministry had revised deminimis levels in 2017, which have been made applicable for all forms of combinations and the methodology for computing assets and turnover of the target involved in such combinations, has been spelt out. This has led to reduction in the notices that enterprises are mandated to submit to the Commission, while entering into combinations, thereby reducing the load on the Commission.

The faster turnaround in hearings is expected to result in speedier approvals, thereby stimulating the business processes of corporates and resulting in greater employment opportunities in the country.

The proposal is expected to result in reduction of three Posts of Members of the Commission in pursuance of the Governments objective of "Minimum Government - Maximum Governance".

Background:

   Section 8(1) of the Competition Act, 2002 (the Act) provides that the Commission shall consist of a Chairperson and not less than two and not more than six Members. Presently, the Chairperson and four Members are in position.                 

An initial limit of one Chairperson and not more than ten Members was provided in the Act, keeping in view the requirement of creating a Principal Bench, other Additional Bench or Mergers Bench, comprising at least two Members each, in places as notified by the Central Government. In the Competition (Amendment) Act, 2007 (39 of 2007), Section 22 of the Act was amended removing the provision for creation of Benches. In the same Amendment Act, while the Competition Appellate Tribunal comprising one Chairperson and two Members was created, the size of the Commission itself was not commensurately reduced and was kept at one Chairperson and not less than two but not more than six Members.

The Commission has been functioning as a collegium right from its inception. In several major jurisdictions such as in Japan, USA and U.K. Competition Authorities are of a similar size.

Restructuring of the Competition Commission narrows membership to streamline merger review and improve administrative efficiency. Rightsizing reduces the Commission to one Chairperson and three Members by not filling vacancies, aligning sanctioned membership with current practice and statutory limits; the change is presented as promoting administrative efficiency and supporting prior de minimis and computation methodology revisions that reduced merger filing burdens and are expected to speed hearings and approvals.