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CMA Final · Corporate and Economic Laws · The Competition Act, 2002

The Commission gave its opinion under Section 49 on the likely effect on competition of a proposed State Government policy. Which statement correctly describes the legal effect of that opinion?

The Commission's opinion under the advocacy provision is not binding on the Central Government or the State Government when it formulates the policy. The government receives the opinion and may thereafter take whatever further action it considers fit.

  1. AIt is binding on the State Government once the sixty-day period has expired
  2. BIt is binding on the State Government only if the Central Government endorses it
  3. CIt is not binding on the State Government in formulating the policyCorrect
  4. DIt is binding if the policy relates to review of laws related to competition

Explanation

Section 49(2) states that the opinion given by the Commission shall not be binding upon the Central Government or the State Government in formulating such policy. The government may take further action as it deems fit, so the other options add conditions the Act does not contain.

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