Competition Commission of India

Competition Commission of India

News: Competition Commission of India (CCI) is probing Google and Apple for alleged unfair business practices.

Background:
• Google is under investigation for abuse of dominance in smart TV and news content space. Apple for alleged anti-competitive practices in the App Store.

What is Competition Commission of India?
• It is a statutory body of the Government of India responsible for enforcing the Competition Act, 2002, it was duly constituted in March 2009.
• The Act prohibits anti-competitive agreements, abuse of dominant position by enterprises and regulates combinations (acquisition, acquiring of control and M&A), which causes or likely to cause an appreciable adverse effect on competition within India.

Composition of CCI:
• CCI consists of a Chairperson and 6 Members appointed by the Central Government.

Role played by CCI in containing abuse of dominant position by MNCs:
• Ensures Fair competition and penalizing those who abuse their dominance- The regulator had passed orders against Google in cases related to the Android system and PlayStore. CCI had passed a cease and desist order for abuse of dominant position in that segment and a penalty of Rs 1,337 crore was imposed. Google has deposited the penalty along with interest.
• Binding Decisions – CCI imposed a fine of Rs. 40 lakh on Axis bank for unnotified acquisitions. Binding decisions power of the body ensures compliance of laws.
• Initiating inquiries – CCI investigated into Whatsapp privacy policy thereby ensuring data privacy and fair competition in digital space.
• Consumer awareness
• Ensure freedom of trade in market and gives opinion on competition issues.

Challenges faced by CCI:
• Adapting to evolving digital landscape
• Pendency of cases – Investigations go on for long as Director General (DG) keeps changing
• Keeping pace with global anti-trust laws
• Toothless Regulator - The majority of CCI orders are being appealed to the NCLAT or are being contested in the high courts or SC.
• Absence of a Judicial member