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Corporate and Economic Laws · The Competition Act, 2002

Competition Advocacy under Section 49 of the Competition Act

Updated 11 October 2026 · Fact-checked

Competition advocacy is the Competition Commission of India's role in promoting competition without enforcing penalties. Under Section 49, the Central or a State Government may refer a policy to the CCI. The CCI must give its opinion within sixty days. The opinion is not binding. The CCI also promotes awareness and training.

Understand Competition Advocacy (Section 49)

Most of the Competition Act is about enforcement: anti-competitive agreements, abuse of dominance and combinations. Competition advocacy is different. It is the soft, preventive side. The aim is to make sure laws, policies and public attitudes support competition before harm happens.

Section 49(1) lets the Central Government and a State Government make a reference to the Commission when formulating a policy on competition (including review of laws related to competition) or any other matter. The reference asks for the Commission's opinion on the possible effect of the policy on competition. The Commission must give its opinion within sixty days of the reference. The government may then take further action as it deems fit.

Section 49(2) is a favourite exam point: the opinion is not binding on the Central or State Government. The government can accept it, modify it or ignore it. Advocacy therefore works through reasoning and persuasion, not compulsion.

Section 49(3) gives the Commission a duty of its own. It shall take suitable measures for the promotion of competition advocacy, creating awareness and imparting training about competition issues. Note the word "shall". Under 49(1) the process starts only when government refers; under 49(3) the Commission must act on its own initiative.

Section 53 links to this. The Commission furnishes the Central Government returns and particulars on proposed or existing advocacy, awareness and training measures, as the Central Government requires. It also prepares an annual report, which is laid before each House of Parliament.

Key rules to remember

Reference and opinion (Section 49(1))
Central or State Government refers → CCI gives opinion within 60 days
The reference concerns the possible effect of a policy on competition. Policy may be on competition or any other matter.
Nature of opinion (Section 49(2))
CCI opinion is not binding on the Central or State Government
Government decides what further action to take.
Promotional duty (Section 49(3))
CCI shall take suitable measures for advocacy, awareness and training
Mandatory duty of the Commission; no reference is needed.
Reporting (Section 53)
Returns on advocacy measures to Central Government; annual report laid before each House of Parliament
Section 53(1) covers returns and particulars; 53(2) and (3) cover the annual report.
Commission's duty (Section 18)
Eliminate adverse practices, promote and sustain competition, protect consumers, ensure freedom of trade
Advocacy supports the promote-and-sustain limb of this duty.

How to solve Competition Advocacy (Section 49) questions

Use this method for any question on Section 49, whether a theory question or a case scenario.

  1. 1Identify who is acting: the Central Government, a State Government, or the Commission on its own.
  2. 2Decide which sub-section applies: reference and opinion (49(1)), non-binding effect (49(2)) or promotion and training (49(3)).
  3. 3State the trigger: a government formulating a policy on competition or any other matter makes a reference to the Commission.
  4. 4State the Commission's response: opinion on the possible effect on competition, within sixty days.
  5. 5State the legal effect: the opinion is not binding, and the government may take further action as it deems fit.
  6. 6Separate advocacy from enforcement: no penalty, no inquiry, no order is involved.
  7. 7Add the link to Section 53 if the question mentions reports or returns.
  8. 8Conclude with a clear answer to the exact facts given.

Quickest way: Three-point recall: Refer, Respond, Remain free

When to use it: For MCQs and short case questions where you have under two minutes.

  1. Refer: only the Central or a State Government refers a policy under 49(1).
  2. Respond: the CCI gives its opinion within 60 days.
  3. Remain free: the government is not bound by it.
  4. If the question says the CCI itself runs workshops or awareness programmes, think 49(3), which is a duty and needs no reference.

Common mistakes in Competition Advocacy (Section 49)

  • Saying the CCI's advocacy opinion is binding on the government

    Students link CCI with orders and penalties from enforcement sections.

    Fix: Remember Section 49(2): the opinion is not binding. Advocacy is advisory.

  • Saying only the Central Government can make a reference

    Students recall the older, narrower wording.

    Fix: Section 49(1) covers both the Central Government and a State Government.

  • Limiting the reference to competition policy only

    The heading says competition advocacy, so students assume the subject is narrow.

    Fix: The section covers a policy on competition or any other matter. The question asked is the possible effect on competition.

  • Writing a time limit other than sixty days

    Students mix this with other time limits in the Act.

    Fix: Sections 49(1), 21(2) and 21A(2) all use sixty days, but state it with the correct context each time.

  • Treating awareness and training as optional

    The advisory part is discretionary, so students assume the whole section is.

    Fix: Section 49(3) says the Commission shall take suitable measures. It is a duty.

  • Confusing Section 49 with Section 21 references

    Both involve a sixty-day opinion.

    Fix: Section 49: government asks the CCI about policy. Section 21: a statutory authority refers an issue arising in a proceeding. Section 21A: the CCI refers to a statutory authority.

Worked examples

Example 1

A State Government is drafting a policy on licensing of agricultural produce markets. It is worried that the policy may restrict entry of new traders. Can it seek the CCI's view, and is it bound by that view? Explain.

Show the solution
  1. Section 49(1) allows a State Government, in formulating a policy on competition or any other matter, to make a reference to the Commission.
  2. The State's concern is about the possible effect of the policy on competition. That is the subject of such a reference.
  3. On receipt, the Commission must give its opinion within sixty days.
  4. Under Section 49(2), the opinion is not binding on the State Government.
  5. The State may then take further action as it deems fit.

Answer: Yes. The State Government can refer the draft policy to the CCI under Section 49(1). The CCI must give its opinion within sixty days. The State is not bound by the opinion and may accept, modify or disregard it.

Example 2

Which of the following is correct about competition advocacy under the Competition Act, 2002? (A) The CCI's opinion under Section 49 binds the Central Government. (B) The CCI must take suitable measures to promote advocacy, create awareness and impart training. (C) Only the Central Government may refer policy matters to the CCI. (D) The CCI must give its opinion within ninety days of a reference.

Show the solution
  1. Option A is wrong: Section 49(2) says the opinion is not binding.
  2. Option C is wrong: Section 49(1) also allows a State Government to refer.
  3. Option D is wrong: the period is sixty days.
  4. Option B matches Section 49(3), which says the Commission shall take such measures.

Answer: Option (B) is correct.

Exam tips

  • Learn the three sub-sections as three ideas: reference and opinion, non-binding, promotion and training.
  • In MCQs, watch for traps on binding force, the 60-day limit and "only Central Government".
  • In long answers, contrast advocacy with enforcement: no penalty or order, only opinion and awareness.
  • Mention Section 53 reporting (returns to government and annual report laid before Parliament) for a fuller answer.
  • In case scenarios, check whether the government asked (49(1)) or the CCI acted on its own (49(3)).

Practice questions from The Competition Act, 2002

Competition Advocacy (Section 49) in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Competition Advocacy (Section 49): frequently asked questions

What is competition advocacy under Section 49?

It is the CCI's role in advising government on the effect of policy on competition and in promoting awareness and training. It is preventive and advisory, not punitive.

Is the CCI's opinion under Section 49 binding?

No. Section 49(2) says the opinion is not binding on the Central or State Government. The government may take further action as it deems fit.

Within what time must the CCI give its opinion?

Within sixty days of the reference being made by the Central or State Government under Section 49(1).

Can the CCI act on advocacy without a government reference?

Yes, for awareness and training. Section 49(3) requires the Commission to take suitable measures to promote competition advocacy, create awareness and impart training about competition issues.