Competition body to tie up with overseas peers

The Competition Commission of India (CCI) is planning to link up with other such authorities outside India in order to build effective cooperative arrangements with them to take congizance of cases involving anti-competitive practice outside India, having effects in the Indian market.

"In this globalised era, business activities in any part of the world can impact the Indian market and vice versa. This process of integration will only grow in future. Meaningful action by the commission may require close cooperation with competition authorities abroad. The question is how effective cooperative arrangements with other authorities can be build up. The commission has begun to examine this aspect," Vinod Dhall, member-administration, Competition Commission of India, told Business Standard.

However, the Competition Act 2002, replacing the Monopolies & Restrictive Trade Practices Act (MRTPA) could not be enforced as yet, due to it being challenged in the Supreme Court, the act may be enforced soon and is expected to be operational in the next six months.

At present, the provisions relating to definitions and scope of the Competition Commission have been made effective, while rest of the Act has not been brought into force.

The MRTP ACT of 1969 was based on a pre-reform scenario whereas Competition Act 2002 has come up in the post-reform era.

The MRTP frowns upon dominance, and has no advocacy role whereas the Competition Commission has adequacy role to play.

The commission is at present seeking partnership and support of different organisations, professional institutes and academicians among others.

The jurisdiction of the commission covers anti-competitive agreements such as cartels, collusive bidding and sharing of markets.

Abuse of dominance such as unfair or discriminatory pricing, limiting production or technical development and predatory pricing are also covered under the jurisdiction of the commission. The third area of jurisdiction is regulation of combining such as mergers, amalgamations, acquisitions and takeover of controls.

In addition, the commission has fourth responsibility of competition advocacy, public awareness and training.

The law provides for investigation, enquiry and adjudication by the commission and it can take action based on complaints or references, and also on its own. The act contains provisions for penalties.