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.
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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.
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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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Act ivit ies undert aken by the
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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Act ivit ies undert aken by t he
Commission (continued)
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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Act ivit ies undert aken by t he
Commission (continued)
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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Act ivit ies undert aken by t he
Commission (continued)
• Process to identify a suitable Institutionfor Capacity Building of the CCI andstakeholders at advanced stage.
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Act ivit ies undert aken by t he
Commission (continued)
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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Act ivit ies undert aken by t he
Commission (continued)
• 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;
Act ivit ies undert aken by the
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Act ivit ies undert aken by t he
Commission (continued)
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.
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A i i i d k b h
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Act ivit ies undert aken by t he
Commission (continued)
• 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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Act ivit ies undert aken by t he
Commission (continued)
Professional w ork
• World Bank and USAID technical
cooperation projects for CapacityBuilding of CCI finalized.
Act ivit ies undert aken by the
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Act ivit ies undert aken by t he
Commission (continued)
• 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.
Act ivit ies undert aken by the
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Act ivit ies undert aken by t he
Commission (continued)
•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;
Act ivit ies undert aken by the
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Act ivit ies undert aken by t he
Commission (continued)
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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Role professionals /professional bodies can play :
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.
Role professionals /
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Role professionals /professional bodies can play :
Some Reflections (continued)
ØTo learn from the cases decided byother competition authorities of theworld; how to input the learnings inthe Indian context;
Role professionals /
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Role professionals /professional bodies can play :
Some Reflections (continued)
• Professional bodies may create aknowledge base for use of theprofessionals
ØDevelopment/compilation/collectionof appropriate materials;
ØStudies/Research;
Role professionals /
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Role professionals /professional bodies can play :
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;
Role professionals /
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Role professionals /professional bodies can play :
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