Competition Commission Chairperson Ashok Kumar Gupta on Tuesday mentioned the regulator has been pragmatic in levying and quantifying penalties because the enforcement actions usually are not divorced from enterprise and financial realities.
Gupta, who can be demitting workplace on Tuesday after being on the helm of the watchdog for almost 4 years, additionally mentioned that the feasibility of an ex-ante framework ought to be thought of for successfully regulating digital markets.
The Competition Commission of India (CCI) has been taking steps to make sure honest competitors within the digital market and final Thursday, it handed a serious order in opposition to Google for the abuse of dominance in a number of markets in relation to Android cellular units.
When requested about Google’s feedback on the ruling associated to the Android matter, the chairperson declined to remark.
Last Wednesday, the watchdog slapped penalties totalling Rs. 392 crore on MakeMyTrip, Goibibo and OYO for unfair enterprise practices.
“We, at CCI, are presently addressing competition concerns in digital markets through our anti-trust enforcement measures, which are essentially ex-post.
“However, the necessity and rationale for ex-ante regulation to complement these efforts of CCI can’t be over-emphasised in view of the expertise gained and difficulties confronted by CCI in effecting well timed market correction in digital markets,” Gupta told PTI in an interview.
He also emphasised that there is a need to closely consider the feasibility of an ex-ante framework to address domestic needs for effectively regulating digital markets, which will supplement the ex-post enforcement actions of CCI.
“Considering that India has the world’s third-largest startup ecosystem with tech-based startup ecosystem permeating throughout sectors, it could be totally acceptable and well timed that we, in India, additionally keep aligned with the frameworks, that are being advanced by our counterparts in regulating digital markets by way of ex-ante measures lest we stay behind the curve,” he noted.
To a query about competition law jurisprudence in the country with respect to big tech players, the CCI chief said the regulator is at a very critical moment in the evolution of competition law jurisprudence in India.
“Going ahead, I consider, as the problems posed are comparable, competitors companies throughout the globe have to collaborate to alternate learnings and experiences. This will present certainty to the markets,” he said.
Over the year, CCI has been taking a light approach towards MSMEs and leniency with respect to cartel cases where there are proactive disclosures by the entities concerned.
“We have been pragmatic in levying and quantifying penalties as our enforcement actions usually are not divorced from enterprise and financial realities,” Gupta said.
He also stressed that CCI’s purpose is to ensure faster market correction and not to enforce the regime, which is characterised by the heavy imposition of penalties, which in any event, get mired in litigation making the other remedies as well a casualty in the appellate process
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