NCLAT AND CCI (Syllabus: GS Paper 3 – Economy)

Context: Recently, the National Company Law Appellate Tribunal (NCLAT) requested responses from both Google and the Competition Commission of India (CCI) in Google's plea challenging the ₹936.44 crore penalty.

• In 2018, Android users moved the competition watchdog (CCI) alleging that Google was abusing its dominant position in the mobile operating system-related market.
• In October 2022, based on the report of DG, the commission imposed a penalty of Rs 1,337.76 crore on Google.

National Company Law Appellate Tribunal (NCLAT) 

• Constituted: Under Section 410 of the Companies Act, 2013 for hearing appeals against the orders of the National Company Law Tribunal(s) (NCLT), with effect from 1st June 2016.
• Nodal Ministry: Ministry of Corporate Affairs
• Aim: To promote competition and prevent activities that have an appreciable adverse effect on competition in India.
• Functions: Hearing appeals against the orders passed by NCLT(s) under Section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC).

oTo hear and dispose of appeals against any direction issued or decision made or order passed by the Competition Commission of India (CCI).

oIt also hears and disposes of appeals against the orders of the National Financial Reporting Authority.

Competition Commission of India (CCI) 

• About: It is a quasi-judicial body which gives opinions to statutory authorities and also deals with other cases.
• Establishment: March 2009 by the Government of India under the Competition Act, 2002for the administration, implementation, and enforcement of the Act.
• Composition of the CCI: One Chairperson and six Members who shall be appointed by the Central Government.

oThe Chairperson and other Members shall be whole-time Members

Objectives

• It will eliminate practices having adverse effects on competition.
• To Promote and sustain competition.