The Competition Commission of India (CCI) plays a pivotal role in curbing the abuse of dominant market positions by multinational corporations, ensuring fair competition and consumer protection. Its recent decisions highlight its proactive stance in preventing monopolistic practices. This answer discusses CCI's regulatory role within the framework of Indian governance.

Q7. Discuss the role of the Competition Commission of India in containing the abuse of dominant position by the Multinational Corporations in India. Refer to the recent decisions.

Model Answer:

Introduction

The Competition Act 2002 enables the Competition Commission to check anti-competitive agreements, prohibit abuse of dominance by strong companies over weak organisations and regulate mergers and acquisitions or takeovers taking place in the market.

Body

Role of CCI in containing the abuse of dominant position by the MNCs in India 

• Section 4 - Prohibits abuse of dominant position.
  • This includes predatory pricing, denial of market access, and unfair conditions imposed on trading partners.
    • Recent decision -: Google fined for imposing discriminatory conditions on smartphone manufacturers regarding pre-installation of apps and hindering market access for competitors under Section 4a & 4b of the Act
    • WhatsApp was fined for its privacy policy update being deemed unfair and lacking transparency under Section 4. 
• Section 19 some text
  • Empowers CCI to initiate inquiries based on complaints, information, or Suo moto (on its own motion).
• Section 19(4) some text
  • If the CCI finds an MNC abusing its dominant position, it can issue various orders under the Act ( some text
    • Directing the MNC to cease and desist from the abusive practice 
    • Divesting part of its business 
    • Imposing a penalty of up to 1% of the relevant turnover of the MNC. 
  • Recent decision - CCI imposed a Rs 40 lakh fine on Axis Bank for not notifying its acquisition of CSC e-Governance, violating competition regulations. 
  • CCI imposed a Rs 1,773-crore fine on Coal India for abusing its dominant position. 
• Section 26  some text
  • Allows CCI to pass orders, issue directions, and impose penalties on companies found to be abusing their dominance. 
• Section 27 - The CCI can impose penalties of up to 10% of the relevant turnover of the undertaking or 1% of its global turnover for dominance abuse. 

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Challenges faced by CCI in ensuring fair market and trade practices -:

• Rapidly Evolving Digital Landscape  Issues like data ownership, algorithmic bias, and platform neutrality pose fresh challenges to the CCI. 
• Competition investigations and subsequent litigation processes can be lengthy and resource-intensive, hindering swift action against potential violations. 
• Limited public awareness about the CCI's role and the benefits of fair competition can hinder effective enforcement. 

Conclusion

By addressing these challenges, the CCI can be better equipped to ensure a level playing field for both domestic and international players, fostering a healthy and competitive market environment for Indian consumers and businesses. 

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