CCI asks Hockey India to split regulatory, commercial roles

Expressing its concern over possible transgression of lines between Hockey India's dual role as a regulator and an organiser, fair trade regulator CCI has asked it to put in place an effective internal control system to keep the two roles separate.
"...Possible conflict of interest between 'regulatory' and 'organising of events' roles of Hockey India, has raised certain potential competition concerns in the mind of the Competition Commission of India," the watchdog said, although it has dismissed the complaints of alleged abuse of dominance and other charges against Hockey India for the time being.
The observations have been made by the CCI in its 64-page order on Hockey India, after an over 18-month long probe into complaints filed by India's former hockey team captain Dhanraj Pillay against the game's governing body in the country.

Drawing parallels with cricket governing body BCCI, against whom CCI has previously imposed a fine of Rs 52 crore for abuse of dominance in IPL, the fair trade watchdog said that the structure of Hockey India "being akin to BCCI, having dual role of regulator as well as organiser, the possibility of transgression of the lines shall always remain there".
The CCI said it did not find enough evidence against Hockey India (HI) in present case, but "as and when any new facts come to its notice, the Commission shall consider them in the light of responsibilities enjoined upon it by the Act and shall act accordingly".

"The CCI felt that it would be appropriate if HI were to put in place an effective internal control system to its own satisfaction, in good faith and after due diligence," it said.

Such system would need "to ensure that its regulatory powers are not used in any way in the process of considering and deciding on any matters relating to its commercial activities; and also set up a streamlined fair and transparent system of issuing NOCs to the players for participating in events organised by foreign teams/clubs," it added.
"HI's economic power is enormous as a regulator. Virtually, there is no other competitor of HI. The dependence of competitors on HI for sanctioning of the events, as also dependence of players, has been total...

"The CCI concluded that though these regulations are inherent and proportionate to the objectives of sports federation, the manner of application is always a concern given the duality of roles leaving scope for possible violations of the Competition Act," the order said.
Passing its order, CCI said "a regulator must necessarily follow the dictum that 'Caesar's wife must be above suspicion'.
"In this case, the Director General's report points out circumstantial evidence which, though not establishing violation of the Competition Act, further persuades the CCI about the inherent potential of violation, and the need for clear articulation and separation of the two roles of HI.