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Fair competition
for greater good
IN FOCUS
IN THIS ISSUE...
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SECTION 3 & 4
ORDERS
SECTION 5 & 6
ORDERS
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INVESTIGATIONS
INITIATED
ADVOCACY
INITIATIVES
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EVENTS
DEVELOPMENTS IN
OTHER JURISDICTIONS
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ANNUAL
DAY
Many developing countries, including India, have only recently moved from a government controlled economy to
the market economy. The culture of competition is, therefore, weak. This is true not merely of the private sector
but also of the government enterprises and government departments acting in a commercial capacity. For this
reason, compliance with the competition law is poor.
To address this situation, competition laws usually mandate the competition authority to undertake advocacy
measures. Such efforts can raise the level of compliance and also reduce the need for direct intervention by
competition authorities in individual cases.
Advocacy can focus on multiple stakeholders business, trade associations, legal community, judges, government
departments, to name a few prominent target groups. In countries such as India, emerging slowly from the
shadows of a statist regime, advocacy with governments is crucial. The old world laws and regulations need to be
looked at through a new prism and modified or repealed.
The Indian Competition Act specifically provides for advocacy under S.49(3). It also has a provision for reference
by the Central Government or State Governments to the Competition Commission of India to seek its opinion on a
policy or matter which could have a bearing on competition. The Commission is duty bound to offer its view
within 60 days.
The Competition Commission has been pro-active in the area of advocacy generally and, more recently, with
Central government departments and State governments. With a view to making optimum use of the limited
resources at our disposal, the Commission is focussing intensively on advocacy with 12 key economic ministries.
Similarly, it is specially addressing 12 State governments in which the level of economic activity is relatively more
robust. Members of the Commission, assisted by senior professional staff, engage on a continuous basis with
representatives of government(s). Sensitisation about competition matters is now moving ahead towards
identification of specific areas in which competition distortions exist with a view to encouraging the policy makers
to reform the landscape.
Needless to say, advocacy is most effective when it is complemented by vigorous enforcement of the competition
law. It need hardly be underscored that advocacy and enforcement have a common aim : to ensure that
competition is not distorted.
Ashok Chawla
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IN FOCUS
WORK SHOP
olicy
adesh
Lucknow
a person or a department of
the Government, but
does not include any activity
of the Government relatable
to the sovereign functions of
the Government including all
activities carried on by the
departments of the Central
Government dealing with
atomic energy, currency,
defence and space
Hence, the Act does not make any
distinction between the public and
private sector in enforcement. In
the last few years a large number
of cases have come against both
Central and State governments and
their public sector undertakings
before CCI. Keeping this in view,
for the last one year the focus of
advocacy efforts of CCI has been
Approach
In order to utilize resources and
manpower effectively, and work
towards a long term partnership it
was decided to focus on a few
states on priority. Accordingly,
twelve states (based on high Gross
State Domestic Product at 2004-05
Conclusion
It is hoped that over time this
partnership would start working
towards assessment of existing
policies, regulations and
legislations in States that have the
capacity to impact the markets
adversely. Such an approach would
yield strong economic benefits as it
would make way for policy
alternatives that would continue to
meet socio-economic goals, while
promoting and fostering a
competition culture.
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INVESTIGATIONS INITIATED
Association of Third Party Administrators vs.
General Insurers' (Public Sector) Association of India.
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ADVOCACY INITIATIVES
Trade Associations
Professional/Management Institutes
Officers of the Commission addressed IIM Lucknow- NOIDA Campus in May 2014 on Competition
policy in India, which was attended by participants of the executive program.
Members of ICAI-EIRC were addressed on Scope for Chartered Accountants under the Competition Act
at Kolkata in June, 2014.
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Internship
Programme
To familiarize students with
Competition Law, CCI has an
internship programme for
students pursuing study in
law, economics,
management and regulatory
governance. Under the
programme students get an
opportunity to research on
various competition related
issues under a mentor from
Commission. From April to
June 2014, twenty three
students successfully interned
with the Commission.
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EVENTS
International
Competition
Network
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DEVELOPMENTS IN OTHER
JURISDICTIONS
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EU fines three
producers of
canned
mushrooms
32 million
in cartel
settlement
The European Commission has
imposed fines totalling
3,22,25,000 on Lutce,
Prochamp and Bonduelle for
participating in a cartel to
coordinate prices and allocate
customers of canned mushrooms
in Europe during more than a year.
The cartel members exchanged
confidential information on
tenders, set minimum prices,
KFTC imposed
penalty against
turf bid riggers
Koreas Fair Trade Commission
(KFTC) has fined 17 artificial turf
manufacturers 7.4 billion Won
(5.3 million) for colluding to rig
bids on more than 200 public
projects. Five of the companies
whose violations were particularly
serious and who actively took part
in bid rigging may face criminal
prosecution.
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Appellat
n
eT
o
itti
u
rib
nal
Com
pe
accountancy, management,
industry, public affairs,
administration or in any other
matter which in the opinion of the
Central Government, may be
useful to the Appellate Tribunal.
The Chairperson and Members of
COMPAT are appointed by the
Central Government from a panel
of names recommended by a
selection committee that consists
of the Chief Justice of India or his
nominee and two Secretaries of
Government of India.
Eligibility
Tenure
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Powers
COMPAT is the forum for first
appeal before which any direction,
decision or orders passed by the
CCI as provided under section
53A(a) of the Act are adjudicated.
The COMPAT has powers to
adjudicate on any claim for
compensation which may arise
from either the findings given by
the CCI or the orders passed by the
COMPAT upon receiving an
application from the affected party.
The orders passed by CCI under
sections 26(2), 26(6), 27, 28, 31,
32, 33, 38, 39, 43, 43A, 44, 45 or
46 of the Act are challengeable
before COMPAT. Any person
aggrieved by the direction,
decision or order passed by the
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