CS Executive · Economic, Commercial and Intellectual Property Laws · Competition Law
The Central Government referred a draft sector policy to the Competition Commission of India under the advocacy provision. The Commission gave its opinion within the statutory time, advising against a clause restricting new entrants. The Ministry decided to retain the clause. Which statement is correct?
The Ministry may retain the clause. Under the advocacy provision, the Commission's opinion on a policy reference is not binding on the Central or State Government, which may take such further action as it deems fit after receiving the opinion.
- AThe Ministry must follow the opinion because it is binding on the Central Government
- BThe Ministry may retain the clause because the opinion is not binding on the GovernmentCorrect
- CThe Ministry may retain the clause only after the Commission withdraws its opinion
- DThe Ministry must obtain Parliament's approval before departing from the opinion
Explanation
Section 49(2) says the opinion given by the Commission 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. The option calling the opinion binding contradicts this. No withdrawal or parliamentary approval is required.
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