Competition Act 2002: What Is Section 16 Of Competition Act?
- Blog|Competition Law|
- 2 Min Read
- By Taxmann
- Last Updated on 25 June, 2021
What the Competition Act is all about?
The Competition commission was the brainchild of Vajpayee government. Realizing the philosophy in modern competition laws, the then government introduced it with the exclusive mission of eradicating anti-competitive agreements and misuse of dominant position by the enterprisers. The act also regulates practices of acquisition, efforts to acquire control, and Merger and acquisition attempts, which cast an appreciable adverse effect on competition in India.
Objectives of Competition Act:
I. The first and foremost duty of the commission is to exercise control over the practices in competition, which are having adverse effect on competition. II. In addition to this, the commission also targets to introduce healthy measure for promotion and sustenance of competition. III. It largely targets to protect the interests of the consumers and give fair trade practices their due place. IV. The Commission has also kept the target to place its opinion on the issues about competition prevailing in India. V. It would also act on a reference received from a statutory authority, if the same has been undertaken by any law in order to promote competition and create awareness in public, and inculcate training on majors issues in competition.
Section 16 of the Competition Act:
In a nutshell, Section 16 of the Competition Act has the following provisions: a) The Central government would notify and do the appointment of a Director General for the purposes of rendering assistance to the Commission in making enquiries about any flouting of norms in Section 16 of the Competition Act. This act would also get performed with the exclusive purpose of performing other related function as it might become necessary under this Act. b) In addition to the duties and responsibilities of the Director General, every other additional, joint, Deputy, and assistant Director General would exercise his/her powers in effecting the decisions taken by the Director General. c) The salary and other perks of Director General and his subordinates would get decided under the Section 16 of the Competition Act. d) The Section 16 of Competition Act makes it mandatory that only persons of outstanding ability and integrity would get appointed in the posts of the Director General and his subordinate staff. e) The persons appointed in the above mentioned posts must have outstanding knowledge in accountancy, management, business, public administration, international trade, law and economics as per the prescribed qualifications deemed fit for the posts. The knowledge and relevant qualifications are essential in performing the duties and responsibilities of all appointed officials and as such, the prescribed qualifications are important parts of Section 16 of Competition Act.
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