The Hindu Business Line : `Competition policy implementation subject to States' cooperation'

SUCCESSFUL implementation of the competition policy will be facilitated if all State Governments willingly embrace it, the Minister of State (Independent Charge), for Company Affairs, Mr Prem Chand Gupta, said.

Speaking at the valedictory function of the Competition Advocacy Seminar for State Governments organised by the Competition Commission of India (CCI), the Minister said, "The presence of representatives of State Governments in such large number shows the keenness of State Governments in promoting competition and maximising consumer welfare."

"We are committed to operationalise the Commission fully as soon as possible. Incidentally, competition law and the framework of the CCI is one of the thrust areas identified by the Ministry of Company Affairs and approved by the Prime Minister, Dr Manmohan Singh," he said.

Currently, the Competition Commission is focusing primarily on creating awareness about the Competition Law so as to increase voluntary compliance. The commission is also engaged in highly technical and professional preparatory work, so that it can immediately shoulder the responsibilities after the relevant provisions of the Act are brought into force.

The State Governments have a dual role under the provisions of the Competition Act. First, this law is applicable to their departments and undertakings, which provide goods or services and second, the State Governments are also consumers and have a forum in the form of the commission for redressal of their grievances in case they are victims of anti-competitive practices such as bid rigging, and cartelisation, he said.

Earlier, speaking at the seminar, the Secretary Company Affairs, Ms Komal Anand, said, "The success of the law depends on the voluntary compliance of the law by the persons for whom it is meant." Ignorance of law may be prevalent not only amongst individuals but also in Government entities, she added.

"I am informed that in the history of over three decades, not a single reference for institution of restrictive or unfair trade practice enquiry has been received by the MRTP Commission from the States, although the MRTP Act permits State Government to make such reference. It is hard to believe that anti-competitive practices do not exist in States. Perhaps it has more do with ignorance of law than with any absence of desire amongst States," Ms Anand said.

It is in this background that a responsibility devolves on the Competition Commission to undertake advocacy and thereby create awareness about the need and utility of the Act.

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