Economic, Commercial and Intellectual Property Laws · Competition Law

Competition Advocacy by CCI 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 penalising anyone. Under Section 49, it gives opinions on government policy within sixty days of a reference, and takes measures to promote advocacy, create awareness and train people on competition issues. The opinion is not binding.

Understand Competition Advocacy

Most of the Competition Act is about enforcement. The Commission inquires into anti-competitive agreements, abuse of dominance and combinations, and it can penalise. Competition advocacy is the other side of its work. It does not punish. It persuades, informs and trains.

Section 18 sets the base. The Commission must eliminate practices having adverse effect on competition, promote and sustain competition, protect consumers' interests and ensure freedom of trade for other participants in markets in India. Advocacy serves the words "promote and sustain competition".

Section 49 has two parts. First, the opinion function: the Central Government or a State Government may refer a policy on competition, or any other matter, to the Commission. This includes a review of laws related to competition. The Commission must give its opinion on the possible effect of the policy on competition within sixty days of the reference. The government may then take further action as it deems fit. The opinion is not binding on the government (Section 49(2)).

Second, the promotion function: under Section 49(3) the Commission shall take suitable measures for the promotion of competition advocacy, creating awareness and imparting training about competition issues. Think of seminars, workshops and training for officials, businesses and students.

Two related provisions often get mixed up with Section 49. Section 21 deals with references by a statutory authority, such as a sectoral regulator, not by the government. Section 53 requires the Commission to report to the Central Government on its advocacy measures and to prepare an annual report that is laid before Parliament.

Key rules to remember

Section 49(1): who may refer and time limit: Central Government or State Government refers a policy → Commission gives opinion within 60 days of the reference → Government may take further action as it deems fit; The reference is made by the government while formulating a policy on competition or any other matter. The opinion concerns the possible effect of the policy on competition.
Section 49(2): effect of opinion: Opinion of the Commission is not binding on the Central Government or the State Government; The government is free to accept, modify or ignore it.
Section 49(3): promotion duty: Commission shall take suitable measures for competition advocacy, creating awareness and imparting training about competition issues; This is a mandatory duty ("shall"). The words "as may be prescribed" were omitted in 2007.
Section 53: reporting: Returns and particulars on advocacy measures to Central Government as required (s.53(1)); annual report each year (s.53(2)); laid before each House of Parliament (s.53(3)); Links advocacy to accountability.
Section 21: reference by statutory authority: Statutory authority refers an issue → Commission gives opinion within 60 days of receipt → authority considers it and gives findings with reasons; Compare with Section 49. Here the referring body is a statutory authority, and the authority must record reasons for its findings.

How to solve Competition Advocacy questions

Use this method for any question on competition advocacy, whether it is a theory question or a short case.

1Identify the heading. Decide whether the question is about the government's reference (Section 49(1)), the binding nature (Section 49(2)), the promotion duty (Section 49(3)), a statutory authority's reference (Section 21) or reporting (Section 53).
2State the provision in plain words with the section number, for example that the Central or a State Government may refer a policy matter to the Commission for its opinion on the effect on competition.
3Add the exact conditions: who refers, the sixty-day period, and that the opinion is given to the referring government.
4Apply the facts. Check who made the reference, whether it concerns policy, and whether the time limit was met.
5State the effect of the opinion: it is advisory, and the government may take further action as it deems fit.
6Mention the promotion side if asked about the Commission's role: awareness, training and advocacy measures under Section 49(3).
7Close with a clear conclusion that answers the exact question asked.

Quickest way: Three-question check

When to use it: Use this when you have only a few minutes for a short-answer or case question.

Who is asking? Government (Section 49) or statutory authority (Section 21).
What is the time limit? Sixty days in both cases, counted from the reference or receipt.
Is the opinion binding? Under Section 49, no. Under Section 21, the authority must consider it and give findings with reasons.
If the question is on awareness or training, write Section 49(3) and Section 53 reporting in one line each.

Common mistakes in Competition Advocacy

Saying the Commission's opinion under Section 49 is binding on the government.
Students assume that a statutory body's opinion must be followed.
Fix: Remember Section 49(2): the opinion is not binding. The government may take further action as it deems fit.
Saying only the Central Government can make a reference under Section 49.
Students recall the original wording or think of national policy only.
Fix: Section 49(1) covers both the Central Government and a State Government.
Mixing up Section 49 and Section 21.
Both involve a reference and a sixty-day opinion.
Fix: Section 49: government refers a policy. Section 21: a statutory authority refers an issue raised in a proceeding, or suo motu. Only Section 21 requires the authority to give findings with reasons.
Treating advocacy as an enforcement power with penalties.
Most of the Act is about inquiry and penalty.
Fix: Advocacy is promotional. Describe it as opinion, awareness and training, not punishment.
Writing the wrong time limit or forgetting it.
Students remember the other timelines, such as the 150 days for combinations in Section 31(6).
Fix: Sixty days for both Section 49 and Section 21 opinions. Keep 150 days only for combinations.
Leaving out Section 49(3) and Section 53 when asked about the Commission's role in promoting awareness.
Students focus on the reference mechanism alone.
Fix: Always cover both parts: opinion on policy and promotion measures, plus the reporting duty in Section 53.

Worked examples

Example 1

The State Government of Maharashtra is framing a policy on licensing of agricultural produce markets. It refers the draft policy to the Competition Commission of India for its opinion. The Commission gives its opinion that the policy may restrict entry of new traders. The State Government decides not to change the policy. Advise whether the State Government is bound to follow the opinion.

Show the solution

Provision: Under Section 49(1), the Central Government or a State Government may, in formulating a policy on competition or any other matter, refer it to the Commission for its opinion on the possible effect of the policy on competition.
Facts: The State Government of Maharashtra made the reference while framing a policy. This is a valid reference. The Commission must give its opinion within sixty days of the reference.
Effect of the opinion: Section 49(2) says the opinion is not binding on the Central Government or the State Government in formulating the policy. The government may take further action as it deems fit.
Application: The Commission's view that the policy may restrict entry of traders is advice only. The State Government may keep the policy unchanged.

Answer: The State Government is not bound to follow the Commission's opinion. Under Section 49(2), the opinion is not binding, and the government may take further action as it deems fit.

Example 2

Explain the role of the Competition Commission of India in competition advocacy under the Competition Act, 2002.

Show the solution

Introduction: The Commission's duty under Section 18 includes promoting and sustaining competition. Advocacy is the non-punitive way it does this.
Opinion on policy: Under Section 49(1), the Central or a State Government may refer a policy to the Commission. The Commission must give its opinion on the possible effect on competition within sixty days of the reference. Under Section 49(2), this opinion is not binding.
Promotion measures: Under Section 49(3), the Commission shall take suitable measures for the promotion of competition advocacy, creating awareness and imparting training about competition issues.
Accountability: Under Section 53(1), the Commission furnishes returns and particulars on its advocacy measures to the Central Government as required. Under Section 53(2) and (3), it prepares an annual report, which is forwarded to the Central Government and laid before each House of Parliament.
Related route: Under Section 21, a statutory authority may refer a competition issue to the Commission, which gives its opinion within sixty days. The authority considers it and gives findings with reasons.

Answer: Competition advocacy is the Commission's advisory and educational role. It gives non-binding opinions to governments within sixty days under Section 49(1) and (2), promotes awareness and training under Section 49(3), and reports on these measures under Section 53.

Exam tips

Write the section numbers 49, 21, 53 and 18 against the right points. Examiners reward correct citations.
Use the words "not binding" and "sixty days" in any answer on Section 49. These are the two most testable facts.
For a long answer, structure it as: meaning, opinion function, promotion function, reporting, then a short comparison with Section 21.
In case questions, first name who made the reference. That decides whether Section 49 or Section 21 applies.
Keep the conclusion to one clear sentence that answers the question asked.

Practice questions from Competition Law

Competition Advocacy in other exams

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

CMA FinalCompetition Advocacy (Section 49)

Competition Advocacy: frequently asked questions

What is competition advocacy under the Competition Act, 2002?

It is the Commission's role in promoting competition through opinions on policy, awareness and training. It is mainly covered by Section 49. It does not involve penalties.

Is the opinion of the CCI under Section 49 binding?

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

How much time does the CCI have to give its opinion on a reference?

Sixty days from the reference, under both Section 49(1) for government references and Section 21(2) for references by a statutory authority.

Who can make a reference to the CCI for its opinion?

Under Section 49, the Central Government or a State Government. Under Section 21, a statutory authority can refer an issue raised in a proceeding before it, and it may also refer an issue suo motu.

Does the CCI report on its advocacy work?

Yes. Section 53 requires it to furnish returns and particulars on advocacy measures to the Central Government as required, and to prepare an annual report that is laid before each House of Parliament.