 "Ravneet kaur")
Competition Commission of India (CCI) Chairperson Ravneet Kaur on Monday said the regulatory body was in the process of notifying the new merger control and the deal value threshold.
She highlighted that there is a significant shift as countries revamp their competition laws to address the complexities introduced by new-age markets. “There has been a marked increase in scrutiny of major technology companies by competition authorities around the globe… Our goal is to ensure that competition law enforcement evolves in tandem with these innovations, safeguarding the interests of consumers,” Kaur said.
Addressing the CCI’s 15th foundation day, Kaur said that with data becoming an important resource, there was a concern of data dominance by companies where control over large data sets can create insurmountable barriers to entry.
“Many digital markets are characterised by platform business models where a single entity controls access to a wide range of services. This raises issues of platform neutrality, especially when the platform also competes with the businesses that rely on their infrastructure,” Kaur said.
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The CCI chairperson said algorithms play an important role in digital markets from shaping user experiences to making pricing and product placement decisions, but the opacity of algorithms can make it challenging to assess their impact on competition.
“Authorities are increasingly considering broader impacts of new-age business practices on consumer choice, innovation, and overall market health,” Kaur said.
Addressing these challenges requires blending traditional competition analysis with a deep understanding of digital market dynamics, Kaur said. “It necessitates the state’s regulatory agility, the development of new analytical tools and novel regulatory frameworks specially tailored for such scenarios,” Kaur said.
She said the CCI was strengthening its international outreach to exchange best practices and enhance capabilities in a globalised economy.
M&A regulations only after elections
The government is likely to introduce the rules and regulations for mergers and acquisitions after the model code of conduct is over, according to sources. These regulations would deal with changes in timelines of M&As, definitions of deal value threshold, etc.
Sources also said the CCI had received a “good response” from companies to schemes such as leniency plus and settlement and commitment.
Under leniency plus, a cartelist cooperating with the CCI for leniency can disclose the existence of another cartel in an unrelated market during the original leniency proceedings, in exchange for an additional reduction in penalty. Companies can, without admission of guilt, opt for the settlement or commitment option and provide a full and true disclosure of facts in respect of the alleged contraventions of the Act.
