CCI to intervene selectively, considering sector-specific dynamics

The annual report noted that the rapid rise of digital markets based on new business models have emerged as challenges for the regulator

The Competition Commission India (CCI) takes into account sector-specific characteristics and the larger economic and policy backdrop to intervene carefully when necessary, the antitrust watchdog said in its annual report. 

  Earlier this month, CCI chairperson Ravneet Kaur had said that the government, while framing the ex-ante (preventative) regulations for the digital markets, was very conscious of the fact that India is a hub of innovation and entrepreneurship with a large number of startups, unlike the European Union which has already implemented such laws. 

 

The annual report for 2023-24 noted that the rapid rise of digital markets, based on new business models, poses a challenge for the regulator.

 

The draft Digital Competition Bill has proposed ex-ante regulations which require digital companies to notify the CCI that they fulfill the criteria to qualify as Systemically Significant Digital Enterprises (SSDEs), based on certain qualitative and quantitative parameters. 

 

The Commission also undertook studies into the mining and diagnostic medical imaging equipment sectors for policy prescriptions last year. It has significantly advanced its advocacy mandate, engaging deeply with a diverse range of stakeholders across the government, industry, and academia, the report said.

 

“Our robust advocacy efforts are designed not only to educate but also to integrate competition principles more thoroughly into the economic fabric of our nation,” it said.

 

The CCI said that it had reviewed various matters relating to anti-competitive conduct that impact consumers and the economy in diverse sectors including pharmaceuticals, automobiles, media and entertainment, aviation, among others.

 

“The exponential growth of computing power and the expansion of internet access globally have spurred the advent of the digital economy and enabled the rise of new business models based on these technologies,” the report said.

 

In FY24, the CCI completed investigations in 18 cases against 24 and 23 in the previous two financial years. It registered information regarding 50 antitrust matters, received 112 merger filings, and passed final orders in 33 antitrust matters, finding contravention in two cases. It disposed of 101 merger cases including three with remedies.

 

The data in the annual report shows that the CCI is operating at its lowest manpower strength since FY22, with 110 of the total 195 sanctioned posts filled as of March 31, 2024.