Competition Commission of India and the commitment to shaping a fair market environment

Source: Indian Express

Subject: Governance

Topic: Accountability

Issue: Regulatory organization- Competition Commission of India

Context: CCI reaffirms its commitment to steering India’s economic journey towards a future that is competitive, inclusive, and resilient

Approach of CCI:

  • Enforcement actions -to address potential anti-competitive practices by issuing suitable punitive and remedial solutions.
  • Advocacy measures – to foster a culture of competition in the markets and to nudge market participants towards competition compliance.

Mandate of CCI:

  • Elimination of practices having adverse effects on competition,
  • Promotion and sustenance of competition,
  • Protection of consumer interests,
  • Ensuring freedom of trade
  • Examines the conduct of dominant companies to ensure they do not abuse their position.
  • Practices like predatory pricing, denial of market access, and exclusive agreements are scrutinized to maintain healthy competition.
  • CCI review any kind of merger or acquisition to avoid any harm to the competitive environment by:
  • Setting prices unfairly,
  • Limiting choices for consumers,
  • Alternatively, stifling innovation by making it harder for smaller competitors to survive.

New age challenges to CCI and its approach to address these challenges:

  • Digital economy, characterized by the dominance of a few tech giants, presents unique challenges such as vast resources and data control.
  • Approach to addressing new-age challenges is multifaceted, involving regulation, advocacy, and international cooperation.

The way ahead:

  • CCI’s focus should be on building resilience and agility in our regulatory practices.
  • CCI should be proactive in identifying potential market disruptions and swift in our response to ensure that competition remains vibrant and fair.
  • Investing in research, building expertise in new-age markets, and leveraging technology for efficient enforcement should be key to CCI’s strategy.
Facts for prelims:

·         Competition Commission of India is a statutory organization under competition commission act.

·         Established by the Central Government with effect from 14th October 2003.

·         CCI consists of a Chairperson and 6 Members appointed by the Central Government.

 

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