Competition Law As Backbone Of Market Economy: CCI Chairperson Ravneet Kaur Addresses Workshop At DSNLU

The workshop was conducted under the leadership of Vice-Chancellor Prof. (Dr.) D. Surya Prakasa Rao and coordinated by the university's Centre for Competition and Anti-Trust Laws with support from faculty members. The event formed part of the Commission's competition advocacy initiative aimed at promoting awareness of competition law and policy among students, emerging legal professionals and market stakeholders.

In his introductory remarks, the Vice-Chancellor referred to the Dunkel Draft prepared by GATT Director-General Arthur Dunkel during the Uruguay Round negotiations in 1991 and its role in pushing global trade liberalisation. He linked these developments to the formation of the WTO in 1995 and the subsequent economic reforms in India, including amendments to intellectual property laws and the enactment of the Competition Act, 2002, which replaced the Monopolies and Restrictive Trade Practices Act, 1969.

The keynote address was delivered by CCI Chairperson Ravneet Kaur, who described competition as the lifeblood of a market economy. She emphasised that markets function efficiently only when firms compete on the basis of innovation, efficiency and merit rather than anti-competitive practices. According to her, competition law plays a crucial role in protecting consumer choice and ensuring better product quality, competitive prices and technological progress.

Referring to the Competition Act, 2002, the Chairperson explained that the mandate of the Commission is centred on protecting consumer welfare, maintaining freedom of trade and ensuring a level playing field for enterprises of different sizes. She noted that the Commission intervenes to prevent practices that distort competition so that markets remain open and contestable.

Speaking about the institutional role of the CCI, she outlined its three principal functional pillars: enforcement against anti-competitive conduct, regulation of mergers and acquisitions, and competition advocacy. Under its enforcement powers, the Commission examines practices such as cartelisation, price-fixing, bid-rigging and abuse of dominant position. Enterprises found to be in violation of the Act may face regulatory directions and monetary penalties.

She also referred to the Competition Amendment Act, 2023, noting that it has strengthened the enforcement framework, including provisions enabling penalties to be calculated on the basis of global turnover. This, she observed, enhances deterrence in cases involving large multinational enterprises.

On merger regulation, the Chairperson explained that combinations such as mergers, acquisitions and amalgamations crossing prescribed thresholds are subject to review by the Commission to assess whether they may cause an appreciable adverse effect on competition. She noted that the introduction of a deal-value threshold has become particularly relevant for transactions in digital markets where companies may have significant data and user bases despite relatively low turnover.

The third pillar of the Commission's work, competition advocacy, includes workshops, seminars and training programmes designed to promote awareness and encourage compliance with competition law. The workshop at DSNLU formed part of this initiative by facilitating interaction between regulators, academics and students.

Addressing the students present, the Chairperson highlighted that competition law is an expanding field of legal practice and research. She noted that expertise in this area is relevant not only for litigation but also for corporate compliance, regulatory work and policy research. Graduates may pursue careers in law firms, corporate legal departments, regulatory institutions and research organisations.

The technical sessions of the workshop were conducted by Shri Dheeraj Gupta, Advisor, and Shri Shekhar, Director at the Competition Commission of India. The sessions traced the evolution of India's competition law regime, noting that the earlier regulatory framework under the MRTP Act primarily focused on preventing concentration of economic power. Following the economic liberalisation of 1991, the need for a modern competition law regime became evident, leading to the enactment of the Competition Act, 2002 based on the recommendations of the Raghavan Committee.

Officials explained that the Competition Commission of India began enforcement operations in 2009 and merger control provisions became operational in 2011. They also discussed the substantive provisions of the Act relating to anti-competitive agreements, abuse of dominant position and regulation of combinations.

With regard to Section 3 of the Act, the speakers explained that agreements causing or likely to cause an appreciable adverse effect on competition are prohibited. Horizontal agreements such as price-fixing, bid-rigging and market allocation were highlighted as particularly harmful due to their direct impact on prices and consumer welfare. Vertical agreements such as exclusive supply arrangements, tie-in arrangements and resale price maintenance were explained as being assessed under a rule-of-reason approach.

The discussion on Section 4 clarified that the Act does not prohibit dominance itself but only its abuse. Practices such as unfair pricing, denial of market access, predatory pricing and leveraging dominance in one market to gain advantages in another may attract scrutiny under the Act.

The sessions also addressed challenges arising in digital markets. Officials observed that digital platforms often operate in markets characterised by strong network effects, scale advantages and significant data concentration, which may contribute to the entrenchment of market power. Issues such as algorithmic pricing, self-preferencing and acquisitions of emerging competitors were discussed as emerging concerns for competition policy.

The workshop concluded with an interactive session where students engaged with the Chairperson and CCI officials on issues relating to merger regulation, sectoral regulation and the treatment of dominant firms in infrastructure and digital sectors. The Chairperson reiterated that the Commission's approach is guided by the standard of appreciable adverse effect on competition while maintaining a balance between regulatory oversight and economic development.

The programme provided students and researchers with an opportunity to gain insights into the functioning of India's competition regulatory framework and the evolving challenges in competition law enforcement.