With growing instances of anti-competitive cases, the work of Competition Commission of India (CCI) has spread to over a dozen sectors. While the CCI is also looking into 39 cases of violation of anti-competitive norms under the Competition Act, 2002, the director general’s office in CCI is investigating 26 other cases of cartelisation and violations of laid down norms.
According to official sources, a large number of cases under investigation are related to the infrastructure sector. CCI is also investigating alleged cartelisation in sectors such as banking and financial services, film, television, IT, telecom, medical, pharma, civil aviation, petroleum, gas, automobiles, milk distribution and onions.
The proposed National Competition Policy, currently under discussion, also aims at strengthening the role of CCI while smoothening the role and powers of various sectoral regulators.
In accordance with the law, CCI is mandated to look into the cartelisation by enterprises, which is anti-competitive activity having appreciable adverse effect on competition that could adversely affect prices. In June, the anti-competition regulator had slapped a hefty penalty of R6,200 crore on 11 leading cement companies, including ACC, Ambuja Cements, Ultratech and Jaypee Cements, for price cartelisation. The other companies found guilty were Grasim Cements, now merged with Ultratech Cements, Lafarge India, JK Cement, India Cements, Madras Cements, Century Cements and Binani Cements. The industry body Cement Manufacturers Association (CMA) was also fined. In 2011, CCI slapped financial penalty on entities for violating the norms under the Competition Act, 2002.
This included a fine of R630 crore on real estate major DLF for indulging in unfair trade practices.
The matter is currently with the Competition Appellate Tribunal (Compat).
Also, CCI imposed a penalty of R55.5 crore on the National Stock Exchange (NSE) for abusing its dominant position in the currency derivative market. However, CCI’s financial penalty on Kingfisher Airlines imposed earlier this year was set aside by Compat.
