Delays in regulatory clearances could lead to uncertainty and disrupt commercial time lines, finance minister Nirmala Sitharaman warned on Tuesday. She, however, added that emergence of gatekeeper platforms and cross-border digital monopolies are posing challenges for the free and fair markets. Dealing with such monopolies requires global cooperation and agile regulations, she said.
Speaking at the 16th Annual Day of the Competition Commission of India (CCI) here, the minster also underlined the need to facilitate swift and seamless approvals for combinations that pose little harm to competition.
The CCI is also a regulator of mergers and acquisitions, as it wants to ensure that amalgamation of businesses don’t result in excessive market power concentration in the relevant markets. Such eventualities are considered to be potentially inimical to competition and free market. In recent years, the regulator is seen to have given fast-paced approvals for many M&As.
The minister drew attention to the fact that the world is facing multiple challenges with concerns over the tempo of exports amid tepid world trade , as well as over environment, energy and emissions.
Given the increased resort to domestic growth levers in this context, it is vital to strike the right balance of regulation and freedom, she emphasised.
“In addition to the traditional challenges, recent years have also seen emergence of new challenges. Artificial intelligence technologies raise novel questions about market power, transparency, data access, algorithmic biases, and also scope of competitive harm,” she said.
The finance minister said that as India is negotiating free trade agreements (FTAs) with different countries, the nimbleness and the readiness of a regulator is keenly watched by investors. “Whether it is litigation, time consumed in litigation, or when the regulators are less transparent, negotiations can get complicated. It is therefore imperative that the regulatory frameworks while maintaining rigorous oversight also facilitate swift and seamless approvals for combinations that pose no harm to competition,” she said.
Sitharaman emphasised on the need for CCI to strike a balance between the regulatory vigilance and a pro-growth mindset which will be integral to building a resilient, equitable, and innovation-driven economic framework in India. She said that a light touch regulatory framework can unleash productivity and employment.
“On the one hand, the commission has upheld the sanctity of the law through firm and decisive enforcement actions against anti-competitive practice. On the other, it has shown equal commitment to enabling legitimate business conduct. Thereby encouraging an environment where enterprises can innovate, grow, and compete fairly,” Sitharaman said.
“India’s ongoing structural reforms, whether it is asset monetisation, disinvestment, and digital public infrastructure, all are geared towards unlocking market potential and deepening competition. The establishment of regional offices has also enhanced the CCI’s capabilities and accessibility to the companies and responsiveness to stakeholders across states,” she said.