Remedies under competition law are largely behavioural: CCI chief

Emphasising that competition law provides for remedies that are "largely behavioural", CCI Chairperson D K Sikri has said it might not necessarily examine a matter from the same perspective as that of sectoral regulators.

Amid instances of possible regulatory overlaps, including with respect to telecom sector regulator Trai's directive on predatory pricing, he said the CCI is concerned with "ex-post regulation" of anti-competitive behaviour of market players.

Earlier this week, TDSAT granted stay on Trai's rule on reporting requirement of special offers for subscribers and definition of 'significant market power' to determine 'predatory pricing' offered by service providers.

In a recent e-mail interview to PTI, Sikri said the CCI and sectoral regulators may not necessarily examine the matter from the same perspective since the legislations for establishing them have different objectives.

He was responding to a query regarding Trai's directive on predatory pricing and his comments came before the TDSAT ruling.

"Sectoral regulators are concerned more with ex-ante regulations. CCI is concerned with ex-post regulation of anti-competitive behaviour of the market players," he said.

Sikri noted that remedies of sectoral regulators are mainly structural while those under the competition law are largely behavioural.

The remedies under the competition law are aimed at preventing practices having adverse effect on competition and promoting and sustaining competition in market to protect the interests of consumers, he added.

"The role of sectoral regulators is to promote orderly development of the concerned sector, while competition is an important element for orderly development of markets.

"Once a contravention under the Competition Act takes place, the remedy lies with the competition regulator," Sikri said.

Competition Commission of India (CCI) keeps a tab on unfair business practices across sectors.

There are also provisions under the competition law that provides for a consultative mechanism.

"Section 21 and 21A of the Competition Act, 2002 provide for a consultative mechanism wherein the CCI and sectoral regulator may exchange their views to resolve any perceived overlap," Sikri said.