Question : Investigations by CCI

(a) the details of the number of investigations undertaken by the Competition Commission of India (CCI) during each of the three years;

(b) the reasons for the declining trend if any, in the number of investigations undertaken by the CCI each year;

(c) whether the Government is aware of the drastically declining budgetary allocation to CCI and if so, the reasons therefor;

(d) whether the Government is aware of the recent revelations of large scale anti-competitive practices undertaken by firms in the alcohol beverage industry, if so, the measures being planned by the Government to strengthen the capacity of the CCI to thwart such anti-competitive practices in business; and

(e) if so, the details thereof and if not, the reasons therefor?

Answer given by the minister

THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION; MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANNING; AND MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS.
(RAO INDERJIT SINGH)

(a) & (b): The details of the number of investigations undertaken by the Competition Commission of India (‘Commission’) during each of the three years are as follows:

Year
Number of Investigations ordered by the Commission in respect of anti-competitive agreements & abuse of dominant position Number of Inquiries undertaken and disposed of, by the Commission in Combination Notices
2018-19 22 89
2019-20 20 81
2020-21 17 90

….2/-
- 2 -

Since the Commission became functional, it has taken various proactive measures from time to time to ensure effective competition and fair play in the market. These, inter-alia, include conducting market studies on relevant sectors of the economy, undertaking competition assessment of the Model Concession Agreements in the public service delivery sectors, extensive and intensive advocacy outreach initiatives such as conducting workshops /conferences/webinars/roadshows on competition laws & practices etc. These have resulted in greater sensitization and understanding of different stakeholders including end-consumers as to the purport and import of competition law regime and accordingly, pure consumer disputes having no competition concerns, have declined. Further, with the enactment of the Real Estate (Regulation and Development) Act 2016, filings before the Commission in respect of pure consumer disputes related to real estate sector have also declined. Furthermore, the Commission has sought to imbibe a culture of competition compliance and self-regulation amongst the market participants. Thus, such initiatives and advocacy measures have supplemented and complemented the enforcement functions of the Commission, resulting in fostering competition in the markets ex-ante and thereby lessening the need for enforcement actions.

(c): The details of the budgetary allocation to the Commission during the financial years 2016-17 to 2020-21 is given below: -
(Amount in Rs. crores)
Financial Year 2016-17 2017-18 2018-19 2019-20 2020-21
Grant-in-Aid to CCI 92.10 119.27 151.56 55.49 46.15

The increase in Grants-in-Aid to the Commission during the Financial Years 2017-18 to 2018-19 was due to requirement of funds for a new office complex of the Commission, which the Commission has already occupied.

(d) & (e): The Commission has received cases alleging anti-competitive practices by firms in alcohol beverages industry and has issued appropriate orders, including imposition of monetary penalties.

In order to strengthen the capacity of the Commission to address anti-competitive practices by firms, the Commission has a dedicated in-house Capacity Building Division which undertakes capacity building initiatives on regular basis by organising trainings/workshops, etc. These programs are conducted with the help of international experts from overseas multilateral agencies and competition authorities as well as domestic experts and organisations specialising in the field of law, economics, finance etc. In addition, the Commission conducts in-house trainings as well as Peer-to-Peer sessions, where inter-divisional sharing of knowledge and information takes place. Also, the Commission deputes its officers for training by way of secondments with counterpart anti-trust agencies.



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