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CSEET · Economic and Business Environment · Key Government Institutions

Which of the following best describes the primary statutory mandate of the Competition Commission of India under the Competition Act, 2002?

The CCI's main mandate is to eliminate practices that adversely affect competition, promote and sustain competition in markets, protect consumers' interests and ensure freedom of trade carried on by other participants. It does not fix prices, regulate securities or supervise banks.

  1. ATo eliminate practices having an adverse effect on competition, promote and sustain competition, protect consumer interests and ensure freedom of tradeCorrect
  2. BTo fix maximum retail prices of goods in all competitive markets
  3. CTo regulate the issue of securities by listed companies
  4. DTo supervise the monetary policy operations of banks

Explanation

The Competition Act, 2002 directs the CCI to eliminate practices that harm competition, promote and sustain competition, protect consumers and ensure freedom of trade for market participants. Price fixing, securities regulation and monetary supervision belong to other bodies or are not CCI functions.

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