High-tech markets to come under intense monitoring
To ensure strict vigil on unfair practices in businesses involving internet and other networking platforms, the Competition Commission of India (CCI) will intensely analyse multi-dimensional high-technology markets. The fair trade watchdog said that it will now focus on intense analysis of multi-sided high-technology markets involving network industry and more complex markets that need greater understanding of economic theories, anti-trust analysis and theories of harm. “Recent development about net-neutrality and other high-tech issues is an area where the Commission will be stressing,” CCI member SL Bunker said on Saturday. Speaking at an international conference on competition law organised by IT and BPO industry body ASSOCHAM, Bunker said that his organisation will now shift its focus away from basic industries and commodities. “So far enforcement has been mainly focussed on basic industries and commodities,” he said. Referring to cases related to mergers and acquisitions, Bunker said that the Commission has so far approved around 250 cases within 30 days. “Commission puts its best efforts to ensure that merger regime is not viewed by the industry as an albatross around their neck and in this regard the Commission has institutionalised pre-notification consultations in order to assist the industry in complying with the procedural and substantive legal issues,” he added. Describing cartel as the “most pernicious violation of competition law”, he said that CCI makes all efforts to ensure competitive neutrality and level playing field among market participants. He said that the Commission does not discriminate between private businesses and government departments. “There is a complete impartiality either it is a government department or private industry, if competition law's violation takes place then the Commission does not give any kind of difference.” The CCI member said that trade associations have always been the mainstream for the Commission. Citing cases related to pharmaceutical sector, film and entertainment industry, he said, “Sometimes the associations while pursuing their legitimate business interest cross the line and indulge in anti-competitive activities thereby creating lot of market distortions.” Bunker said that in the past six years, the Commission has received around 600 references and suo moto cases. Out of them, around 75% cases have already been decided. Explaining delays in disposal of cases, Bunker said, “Competition law is very complex and requires comprehensive analysis which is why generally the economic analysis and processes of investigation takes lot of time.”
May 2, 2015 | 7:42 pm IST.
to success.