Authored By: Neha, University Institute of Legal Studies, Panjab University, Chandigarh, Research Writer at Law Audience®,
Edited By: Mr. Varun Kumar, Advocate, Himachal, Punjab & Haryana and Founder at Law Audience.
I. INTRODUCTION:
Competition law is the vigilant guardian of a nation’s market economy. In India, while the Competition Act of 2002, as amended in 2023, is the primary legislative piece, its legality, and jurisdiction rest with the Constitution of India, 1950. This relationship is often described as the “Economic Constitution”, in which the principles of justice and equity articulated in the Preamble are given practical effect through the regulation of the market. As India moves toward a $5 trillion economy in 2025, the role of the Competition Commission of India (CCI) has evolved from merely preventing monopolies to actively shaping a digital and globalized market. This article explores how constitutional provisions provide the bedrock for these regulations[1]”.
KEYWORDS: Economy, Constitution, Competition law, Market, Justice, Public Interest, Fundamental Rights, Regulatory Powers, Amendment.
II. THE PREAMBLE: THE BLUEPRINT OF ECONOMIC JUSTICE:
The soul of Constitution is the Preamble. It ensures every citizen access to “Justice: Social, Economic, and Political”. Economic Justice is more than just the redistribution of wealth; it is he guarantee of access to the “economic playground.” One of the objectives of the law on competition is to curb the concentration of market power because, in the absence of such control, there is “economic tyranny” dominant market players dictate the economic conditions of the rest of the individuals in the economy. The Competition Act, through its control of anti-competitive practices and the restriction of abuse of dominant position, ensures the promise in the Preamble of having an equitable economy.
III. THE MANDATE TO REGULATE: DIRECTIVE PRINCIPLES OF STATE POLICY (DPSP):
The main constitutional link to Competition law is found in Part IV of the Indian Constitution, specifically in Article 38 and 39, providing the mandate of “State Policy” which necessitates market regulations and are considered as the heart of Competition Law-
ARTICLE 38(2): provides Social Order and Welfare. This article directs state to minimize inequalities in income and remove inequalities in status and opportunities. In economic context, cartels and monopolies are the major sources of income disparity because they extract “rent monopoly” income from consumers and concentrate wealth in the hands of a few shareholders.
ARTICLE 39(b): mandates equitable distribution of community’s material resources for the common good.
ARTICLE 39(c): mandates prevention of concentration of wealth and means of production to the detriment of the public.
In the modern era, “material resources” are no longer just land and minerals; they include Big Data, digital infrastructure and spectrum. The CCI’s recent moves on big tech companies in data-sharing practices (e.g., on 2024/25 WhatsApp-Meta privacy case[2]) are nothing but the application of Article 39(c) to the digital world.
IV. BALANCE BETWEEN “FUNDAMENTAL RIGHTS AND REGULATORY POWER”:
While DPSP provides power of regulation, the State must balance this regulation and respect the Fundamental Rights of businesses.
ARTICLE 19(1) (g): grants all citizens the fundamental right to practice any profession, or to carry on any occupation, trade, or business. This right allows individuals to choose their business or profession freely without arbitrary restrictions from the State.
ARTICLE 19(6): The State can impose “reasonable restrictions” on the right to trade in the “interests of the general public.” Competition law is recognized as a quintessential reasonable restriction. Without it, the “Right to Trade” for a small startup would be extinguished by the predatory practices of a dominant incumbent[3].
2025 Update: Recent rulings have emphasized that while the CCI has broad powers, these must satisfy the “Doctrine of Proportionality”. In CCI vs. Independent Sugar Corporation Ltd. (2025)[4], the Supreme Court clarified that procedural due process (like mandatory show-cause notices) is an essential part of keeping these restrictions “reasonable” under Article 19[5].
V. 2023 AMENDMENT: A CONSTITUTIONAL SHIFT:
The Constitutional (Amendment) Act, 2023, represents a primary “Constitutional Pivotal” in India’s economic governance which shifts focus from old disciplinary methods to dynamic market corrections. The most significant change is the introduction of legislative mandate, so that penalties are to be calculated on the basis of Global Turnover, rather than Relevant Turnover. Further the new amendment provides act as a Startup Shield through Deal Value Threshold, which means when large companies or businesses buy startups just to remove some competitions, the new law specifies that the CCI can examine such deals even if the startup is not making profits but is of high value. The introduction of “Settlement and Commitment” framework is further an effective measure for public interest. This gets over the “Reasonable Restrictions” of Article 19(6) and forces the market to correct immediately rather than after years of litigation.
V.I THE DIGITAL COMPETITION BILL 2024/25[6]:
The proposed “ex-ante” (proactive) regulations for “Systemically Significant Digital Enterprises” (SSDEs) represent a new constitutional frontier. By regulating Big Tech before an abuse occurs, the State is arguably fulfilling its Article 38 duty to prevent market inequalities before they become irreversible[7].
VI. THE COMPETITION COMMISSION OF INDIA
CCI is a Quasi-Judicial body. Its decisions are subject to judicial review by the Supreme Court of India and National Company Law Appellate Tribunal (NCLAT). The vision of CCI is “To promote and sustain an enabling competition culture through engagement and enforcement that would inspire businesses to be fair, competitive and innovative; enhance consumer welfare; and support economic growth”[8]. The 2025 scenario has high emphasis on the principles of natural justice in CCI proceedings. It was consistently held by courts that although CCI is a domain expert, it cannot ignore the constitutional mandate of fair hearings as given under Article 14 and 21.
VII. CONCLUSION:
The Competition Law in India is not just about fixing prices but protecting the right of Freedom of Trade and sovereignty of consumers and entrepreneurs. The constitutional Provisions act as checks-and-balances on Competition law to prevent economic equality and ensure material resources are used for common good. In the words of the Supreme Court, the “common good” must always prevail over private greed—and that is the ultimate constitutional mandate of Competition Law.
References & Footnotes:
[1] Five Key Amendments in Indian Competition Law 2025″ Khaitan & Co, Jan. 10, 2025, https://ksandk.com/competition/five-key-amendments-in-indian-competition-law-2025/ (last visited on Dec. 26, 2025)
[2] WhatsApp LLC v. Competition Commission of India, LPA 163/2021, decided on 25-08-2022 (Del HC), https://indiankanoon.org/doc/72500443/ (last visited on Dec. 28, 2025)
[3] Kesavananda Bharati v. State of Kerala, (1973) 4 SCC 225, https://indiankanoon.org/doc/1218090/ (last visited on Dec. 26, 2025).
[4] Independent Sugar Corporation Ltd. v. Competition Commission of India, Competition Appeal (AT) No. 03 of 2023, decided on 28-07-2023 (NCLAT), https://indiankanoon.org/doc/169621600/ (last visited on Dec. 28, 2025)
[5] Taxmann, “[Analysis] Key Competition Law Rulings of 2025 | Top 15 Case Laws” Taxmann Blog, https://www.taxmann.com/post/blog/analysis-key-competition-law-rulings (last visited on Dec. 26, 2025) (discussing Independent Sugar Corporation Ltd. v. Girish Sriram Juneja)
[6] PRS Legislative Research, “Committee Report Summary: Digital Competition Law” (March 12, 2024), https://prsindia.org/policy/report-summaries/digital-competition-law (last visited on Dec. 28, 2025)
[7] Khaitan & Co, “Decoding India’s Digital Competition Bill 2024: Navigating Market Regulation in Comparison to the EU’s Digital Markets Act” Mondaq, available at: https://www.mondaq.com/india/antitrust-eu-competition/1451852/decoding-indias-digital-competition-bill-2024-navigating-market-regulation-in-comparison-to-the-eus-digital-markets-act (last visited on Dec. 27, 2025).
[8] Competition Commission of India, Government of India
