CCI asks Hockey India to split regulatory and commercial roles

Competition Commission has rejected charges of abuse of dominance against Hockey India but said the organisation should ensure that its regulatory powers are kept separate from its commercial activities.
While ruling out charges of abuse of dominance, Competition Commission of India (CCI) has expressed concern over possible transgression of lines between Hockey India's dual role as a regulator and an organiser.
"... The nature of the present system itself, with the possible conflict of interest between the regulatory and organising of events roles of Hockey India, has raised certain potential competition concerns in the mind of the Commission," CCI said in an order dated May 31.

The fair trade regulator has observed that "it would be appropriate if Hockey India were to put in place an effective internal control system to ensure that its regulatory powers are not used in any way in the process of considering and deciding on any matters relating to its commercial activities".
Besides, it has also asked Hockey India "to set up a streamlined fair and transparent system of issuing NOCs to the players for participating in events organised by foreign teams/clubs".
The observations have been made by the CCI in its 64-page order on Hockey India, after an over 18-month long probe into complaints filed by India's former hockey team captain Dhanraj Pillay against the game's governing body in the country.

The complaint has alleged the organisation of imposing restrictive conditions on players for participation in "un-sanctioned prospective private professional leagues".

As per the complaint, this has lead to undue restrictions on mobility of players and on prospective private professional leagues leading to denial of entry to competing leagues.
However, CCI said it did not find enough evidence against Hockey India in present case, but "as and when any new facts come to its notice, the Commission shall consider them in the light of responsibilities enjoined upon it by the Act and shall act accordingly".
Drawing parallels with cricket governing body BCCI, against whom CCI has previously imposed a fine of Rs 52 crore for abuse of dominance in IPL, the fair trade watchdog said that the structure of Hockey India "being akin to BCCI, having dual role of regulator as well as organiser, the possibility of transgression of the lines shall always remain there".

CCI has noted that Hockey India's economic power is enormous as a regulator and that the entity "virtually" had no other competitor.
"The dependence of competitors on Hockey India for sanctioning of the events, as also dependence of players, has been total..." it added.
CCI said "a regulator must necessarily follow the dictum that 'Caesar's wife must be above suspicion'.