Regulatory oversight needs fine-tuning with changing times: CCI Chairman

Data hegemony by some digital companies may lead to an "attention economy", he says

Regulatory oversight should be regularly fine-tuned with changing times to suit the dynamic business environment, especially in the present digital world, Ashok Gupta, chairman of Competition Commission of India said on Thursday.

Gupta said that data hegemony by some digital companies may lead to an “attention economy”, in which big tech players work to capture user attention, build profiles of their choices and habits and then sell those profiles to advertisers. “The CCI has a very important role in ensuring that these platforms remain neutral, offer a level playing field and allow enterprises, big and small, that access consumers through these platforms, to compete on the basis of merits,” the CCI chairman said during an address at a conference by Associated Chamber of Industry and Commerce.

He said that in these fast-evolving and dynamic markets, a regulator’s task is much like hitting at moving targets. “The regulatory stance needs to be nuanced, and the enforcement toolbox needs to be adapted to these changes so that the instrumentality remains fit for purpose. The challenge is to keep abreast of the developments in these markets and continue to evolve and refine the tools,” Gupta said.

CCI head said competition is the life force of markets that creates the best incentives for businesses to increase efficiency, drives their productivity and fuels innovation.

“Despite its all-encompassing benefits, healthy competition may not emerge on its own. Even the most ardent votaries of a market economy recognise that liberalised markets cannot be presumed to be competitive and efficient,” he said.

Gupta said that Without oversight and necessary intervention, we could witness a chaotic environment, where dominant firms misuse their market power to fence out competition. He said cartels could drive up prices or anti-competitive mergers could weaken the competitive structure of markets, resulting in businesses getting affected and consumers being deprived of value for money. “The objective of CCI is to bring about market corrections where fair competition is found to be hindered due to anti-competitive conduct,” he said.