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

Under the competition advocacy provision of the Competition Act, 2002, the Central Government refers a draft policy to the Competition Commission of India for its opinion on the policy's likely effect on competition. Which statement is correct?

The Commission must give its opinion within sixty days of receiving the reference, and that opinion is not binding on the Central or State Government. The Government may then take whatever further action it considers fit when formulating its policy.

  1. AThe Commission must give its opinion within sixty days of the reference, and the opinion does not bind the GovernmentCorrect
  2. BThe Commission must give its opinion within thirty days, and the Government must follow it
  3. CThe Commission may take any time it needs, and the opinion is binding on the Government
  4. DThe Commission must give its opinion within ninety days, and the opinion is binding unless Parliament disagrees

Explanation

Section 49 requires the Commission to give its opinion within sixty days of the reference. Sub-section (2) states that the opinion is not binding on the Central or State Government in formulating the policy. The options that make the opinion binding, or that give a different time limit, are therefore wrong.

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