Competition Commission mulls amnesty plan

The Competition Commission of India (CCI) would be banking on the 'leniency clause' of the amended Competition Act, 2002, to bust major industry cartels in the coming years.

The leniency tool has worked well for several countries including the UK and US among others, and it could be judiciously used in India as well, said Vinod Dhall, member and acting chairman of the CCI.

If a party breaks away from the cartel and gives vital information to the CCI, it can get leniency treatment or even amnesty, Dhall explained. This has recently happened in case of the airline cartel, where Virgin Airlines escaped a major fine as it gave significant information to break the cartel, he added.

British Airways, on the other hand, had to pay a huge fine for cartelising cargo rates.

Cartels are illegal in around 10-12 countries. The guilty senior executives can even face imprisonment, he said. In India, cartels are suspected in some sectors, like the construction and infrastructure segments.

The CCI assumed statutory powers to enforce anti-competitive practices in September last year. It is not yet operational, but is in the process of recruiting personnel.

"The prime minister is keen that the Commission becomes operational as soon as possible, and hence we are trying to recruit people through fast-track processes," said Dhall.

While the Commission had suo motu powers to invoke action, it would mainly act on complaints. Consumer complaints were the major triggers behind action on part of the CCI.

When asked how intellectual property rights (IPR) could gain importance in the changing business environment, where intangible assets formed a major portion of the assets of a knowledge company, he said while IPR was going to become increasingly important, it should, at the same time, not constrain competition eventually leading to monopoly.

The dynamics between IPR and competition laws had to be closely monitored, Dhall added.