The Rise of Anti-Competitive Practices in India and the Steps CCI Is Taking to Rectify It

Introduction: In recent years, anti-competitive practices have become increasingly prevalent in India, raising concerns about market integrity and fair competition. The Competition Commission of India (CCI), established by the Indian government in 2014, has taken significant strides to address these issues through strategic actions. This blog explores how CCI has Investigated 35 cartel cases over five years, introduced innovative mechanisms like “Lesser Penalty Plus,” and expanded its cooperation framework with global regulators.

Increase in Cartel Cases: CCI’s efforts have seen a notable increase in the investigation of anti-competitive cartels. Over the past five financial years, they investigated a total of 35 cases, highlighting their commitment to promoting market fairness. These cases include issues such as price discrimination and deceptive practices aimed at consumer gain.

CCI’s Strategy and Tools: To combat anti-competition, CCI has developed a robust strategy. They’ve signed MoUs with multiple countries (Egypt, Mauritius, Japan, Brazil, etc.) for cooperation in competition law, ensuring that smaller enterprises are included unless they’re part of existing agreements. Additionally, the “Lesser Penalty Plus” mechanism has been introduced to incentivize disclosers, encouraging them to disclose cartels more effectively.

Impact on Competition Law: The CCI’s approach has led to meaningful changes in how anti-competitive behavior is addressed. By involving smaller enterprises and introducing a fairer mechanism for disclosure, they aim to create a more equitable market environment. This strategy is part of broader efforts by CCI to ensure that competition law remains robust despite growing anti-competitive pressures.

Conclusion: In an era where anti-competition becomes a significant challenge, the CCI’s proactive measures are a testament to their dedication in promoting fairer competition. By investigating cases, introducing incentivized disclosals, and expanding cooperation with smaller enterprises, they aim to foster a market that values honesty and competition. These efforts have not only improved compliance but also laid the groundwork for future improvements in India’s competitive landscape.