The Hindu Business Line : Anti-competitive practices — Bid to keep competition panel the nodal agency

THE Ministry of Company Affairs (MCA) is examining a few options to ensure that the Competition Commission of India (CCI) acts as the nodal agency to determine if the rules of the game put in place by sectoral regulators have resulted in anti-competitive practices.

A senior MCA official told Business Line that the Ministry was aware of these issues and, it would, in the proposed amendments to the Competition Act, ensure that all concerns have been answered. Instead of overlapping with other sectoral regulators, the commission will play a useful and complementary role, the official said.

The Ministry is aware that some of the sector-specific regulators may also examine competition dimensions emanating from mergers or amalgamations of licensees and there may be an overlap of jurisdiction, the official said. He added that various alternatives, which exist overseas, are being examined to resolve such conflicts between the competition authority and the sector-specific regulators.

One of the options before the Ministry is that the sectoral regulators, before deciding on any matter on anti-competitive practices, should consult the CCI, and the CCI should respond in a time-bound manner. However, the CCI comment may not be binding on them. But, if the regulators do not accept the CCI views, they must give a reason for it, the official said.

The second option is to let the sectoral regulators take a decision and make the CCI take a final view on the decision, if need arises. In this situation, the CCI can either annul the sectoral regulators' decision or modify it. This will be mandatory on the sectoral regulators.

And the final option is to leave the sectoral regulators alone. The need to clearly outline the role of the CCI arose when questions were raised on whether sector-specific regulatory bodies, such as the proposed Petroleum and Natural Gas Regulatory Board, with a mandate to prevent anti-competitive practices in that particular sector, should consult the CCI on all issues concerning pricing or whether such bodies had the autonomy to fix and regulate price.

The Petroleum Ministry, which is working on the regulatory board, felt the Competition Act had to clarify the technical hitches.

The MCA has been critical of certain proposals in the Petroleum and Natural Gas Regulatory Board, particularly on the autonomy of the proposed board, its powers to fix and regulate prices and its capability to foster competition and protect consumer interest.

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Anti-competitive practices — Bid to keep competition panel the nodal agency