Presentation by CCI

7/31/2019 Presentation by CCI

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Date : 2 nd March 2005 Place : New Delhi

Vyas Ji, Secretary, CCI

Competition Commission of India3rd Floor, ‘B’ Block, Paryavaran Bhavan,

CGO Complex, New Delhi – 110 003.

Website : www.com etition-commission-india.nic.in



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DISCLAIMER

The presentation does not touch on theissues raised in the writ petitions filedbefore Hon’ble Supreme Courtchallenging certain provisions of the

Competition Act; and the amendmentsto the Act, if any, the Government maybe proposing in the light of the

judgement delivered by the Hon’bleSupreme Court in the Writ Petition on20th January, 2005.



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About t he Seminar ….

• This Advocacy Seminar aims atcreating awareness aboutCompetition issues amongst the

Professional Bodies such as ICAI,ICWAI and ICSI andpractising/employed charteredaccountants, Cost & worksaccountants and companysecretaries.

Ab h S i



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About t he Seminar ….

(continued)• Commission has planned similar

seminars with other stakeholders suchas Industry / Business organizations,legal fraternity, consumer & civil societyorganizations, academia and State & Central Government Departments /Ministries in the days to come.

• Commission believes that through such

endeavour process of mutual learningwill get facilitated and moving forwardthe agenda of competition will becomemuch smoother.



Why do w e need compet it ion?

• Competition offers wider choice toconsumers at lower prices.

• It leads to optimal allocation of resources, innovation, higher efficiencyand productivity, and acceleratedgrowth.

• It preserves economic and politicaldemocracy.



What const it ut es

Compet it ion Policy ?

• Competition policy comprises of Government measures that affect thebehavior of enterprises and structure of the industry to promote efficiency andmaximize welfare.



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What const it ut es Compet it ion

Pol icy ? (continued)• There are two elements of competition

policy:-

Ø First: a set of competition enhancing

policies, such as liberalized tradepolicy, relaxed FDI policy,deregulation, privatization, etc.

Ø Second: competition law to preventanti-competitive practices



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What const it ut es Compet it ion

Pol icy ? (continued)

• India has been liberalizing its policies tomake them more pro-competitive. The

Competition law has also been enacted,but not yet fully brought into force.



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Compet it ion Act 2002 -Background

• Government constituted a committee in 1999to examine MRTP Act, 1969 for shifting thefocus of the law from curbing monopolies to

promoting competition and to suggest amodern competition law in line withinternational developments to suit Indianconditions.

• Pursuant to the recommendations of theCommittee, the Competition Act, 2002 wasenacted and notified in January, 2003.



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How Competition Act conceptuallydiffers with MRTP Act

• Focus of MRTP Act is to curb monopolies,whereas Competition Act aims atpromoting competition.

• MRTP Act is applicable to private andpublic sector undertakings, whereasCompetition Act in addition to the publicand private sector undertaking, is alsoapplicable to a Department of theGovernment engaged in businessactivities.



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How Competition Act conceptuallydiffers with MRTP Act (continued)

• MRTP Act does not provide for effectdoctrine; whereas Competition Act

provides for it under Section 32.• Under MRTP Act, no provision to impose

penalty on delinquent enterprises;

whereas Competition Act empowersCommission to impose penalty ondelinquent enterprises.



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How Competition Act conceptually

differs with MRTP Act (continued)

• No Advocacy provision under MRTP Act,whereas Competition Act mandatesundertaking Competition Advocacy



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Establ ishment of

Compet it ion Commission

(continued)

• Established by the Central Government inOctober 2003

• Government notified certain provisions like

relating to establishment of CCI,appointments, competition advocacy, framingof rules & regulations.

• Provisions relating to enquiry into anti-competitive agreements, abuse of dominance,and regulation of combinations not yet notified



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JURI SDI CTI ON

• For achieving its objectives, theCommission has jurisdiction to:a) Enquire into Anti-Competitive

Agreements (e.g. Cartels, bid-rigging,etc.) [Section 3 ]

b) Enquire into abuse of dominantposition (e.g. Predatory Pricing, etc.)

[Section 4 ]



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JURI SDI CTI ON

(continued)

c) Regulate combinations (Mergers, Amalgamation, Acquisition of shares

or control), [Sections 5 & 6 ]

d) Undertake Competition Advocacy(including advice on competition

policy issues), create publicawareness, impart training oncompetition issues, [Section 49 ]



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Government Decision

• In the first year – Commission toundertake Competition Advocacy only

• In the second year the Commission tocommence adjudication work relating to Anti-Competitive Agreements and Abuse of Dominant Position

• In the third year, enquiries intoCombinations would be undertaken

Act ivit ies undert aken by the



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CommissionObjective

• Within the framework of Government’sdecisions and notifications issued from time totime, the Commission has been undertaking

Preparatory and Foundational work required tomake it fully operational at the appropriatestage with minimum loss of time at that stage,further once the Writ Petitions pending beforethe Hon’ble Supreme Court are disposed of andthe legal position has been cleared. After, the judgement has been delivered, the Commissionhas up-scaled its above work.



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Act ivit ies undert aken by t he

Commission (continued)

• Administrative work;

•Establishment work including CapacityBuilding;

•Professional work including Competition Advocacy;

•Preparation of Draft Regulations, Rules, etc.;

•Competition Forum;

The Commission, assisted by a very small coreteam of officers and staff, has beenundertaking the aforesaid activities.



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Administ rat ive w ork

• Taken up temporary office premises;Permanent office premises identified;

• Procured office equipments; support servicesoutsourced;

• Library being set up; initial set of booksprocured;

• Emblem of the Commission finalized;• Web site set up; updation on; upgrading of web site being processed;

A t i it i d t k b th



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Establishment work including CapacityBuilding

• A small team of officers and staff appointed;

• Draft Rules / Regulations for recruitment / service conditions prepared; DraftRecruitment Regulations sent to the

Govt. for vetting;• Organizational Structure of CCI prepared

on tentative basis;



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• Process to identify a suitable Institutionfor Capacity Building of the CCI andstakeholders at advanced stage.



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Compet it ion Advocacy

Undertaken intensive interaction withleading Industry Chambers andProfessional Institutes.

Set up Advisory Committee onCompetition Advocacy (of experts).

A t i it i d t k b th



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• Competition Advocacy Literature & FAQs prepared;

• Concept paper on Competition

Advocacy finalized; put up on web site;• Draft Competition Advocacy Rules

prepared and sent to Government for

notification;




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Compet it ion Forum • Has been set up for capacity building of

CCI and staff, and for analysis of competition related concepts. Forum

meets on Fridays, and experts are invitedto make presentation and todiscuss/interact on competition issues.

• Experts from reputed institution such asDSE, JNU, RGICS, IIFT, NCAER, CUTS,CERC, IIM, Foreign Universities etc. haveparticipated in the Forum.



A i i i d k b h



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• In addition, a Competition Commission Advisory Committee on CourseCurriculum constituted;

• First meeting of the Committee held;

• Providing secondment facilities forresearch in ‘competition fields’ to JNU /

ICAI students agreed on principle;



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Professional w ork

• World Bank and USAID technical

cooperation projects for CapacityBuilding of CCI finalized.




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• Work commenced for undertakingEconomic and Commercial AnalyticalStudies / Research Projects inassociation with reputed institutions /organizations eg in selected industrysectors like pharmaceuticals,telecommunications, transport, retailfood, and food grains, and in respect of anti-competitive impact of laws andpolicies at the level of Central and StateGovernment.




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•Expert Committees / Task Forces setup for advice in respect of identified

specialized areas:Ø Advisory Committee on Competition Advocacy;

ØCompetition Commission Advisory

Committee on Regulations;ØCompetition Commission Advisory

Committee on Economic;




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ØCompetition Commission AdvisoryCommittee on Predatory Pricing andDetermination of Costs;

ØCompetition Commission AdvisoryCommittee on Research Projects;

ØCompetition Commission Advisory

Committee on Course Curriculum;

Professionals and the Act



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Professionals and the Act

• Professionals are valued stakeholders inany endeavour to promote competitionculture & awareness.

• Section 35 of the Act specifically

provides that professionals such aschartered accountants, cost accountantsand company secretaries may alsoappear before the Commission (apartfrom legal practitioners) to present thecase of a party.

P f i l d th A t



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Professionals and the Act(continued)

• This is a unique provision, not providedunder MRTP Act.

• Section 36(4) provides that the

Commission may also call upon expertsfrom the relevant field or discipline as itdeems necessary (including economics,commerce, accountancy etc.) to assist it inthe conduct of any inquiry or proceedingbefore it.

R l f i l /



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Role professionals /professional bodies can play :

Some Reflections

• Be well equipped to present the cases of the parties before the Commission

Ø knowledge of the law;

Ø knowledge of anti-competitive business

behavior;

Ø capacity to make case analysis;combination analysis;

Role professionals /



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Some Reflections (continued)

Ø conversant with craft of presentating

cases;Ø capacity to assist parties or their

advocates in appeals;

•To be conversant with internationaldevelopments under competition law & practice.




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ØTo learn from the cases decided byother competition authorities of theworld; how to input the learnings inthe Indian context;




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• Professional bodies may create aknowledge base for use of theprofessionals

ØDevelopment/compilation/collectionof appropriate materials;

ØStudies/Research;




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Some Reflections (continued)• Develop and transact appropriate

academic curriculum;

• Consider introducing ‘bridge courses’ for the practising professionals;

• Professional bodies to be proactive

competition advocatesØ Organize seminar/conferences on

competition policy & law;

R l f i l /



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Role professionals /professional bodies can play :Some Reflections (continued)

ØNetwork with legal fraternity /academia;

ØCommission may provide intellectualsupport;

• Competition Compliance andCompetition Audit

ØCheck lists;




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Some Reflections (continued)ØIntegral to the audit of accounts/cost;

Ø

Educating enterprises on benefits of competition & Risks involved inindulging into anti-competitive practices

ØChartered Accountants, Company

Secretaries, Cost Accountants who areemployed in companies can advise inensuring competition compliance.



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THANK YOU

Competit ion Comm ission of I ndia,‘B’ - Block, 3r d Floor,

CGO Com plex,New Delhi.

Web site:www.competition-commission-india.nic.in

Presentation by CCI

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