Letter to BS: CCI should have more teeth to ensure fair competition

There is also a need to maintain a delicate balance between innovation and fair competition to ensure product quality keeps pace with technology growth

Business Standard 

With reference to “Making effective” (April 23), it is only fair that a supervisory body, once statutorily created, should be allowed to perform its role independently. In a economy, competitive functioning should be rational, and in keeping with market conditions for which the Competitive Commission of India was constituted. Market competition should conform to fair practice. Control must also be exercised to prevent cartelisation of products by a select group. There is also a need to maintain a delicate balance between innovation and to ensure product quality keeps pace with growth. Accordingly, the cost of infrastructure and manufacture have to be built into fair market pricing. This reinforces the need for specialised experts and legal advisories on its advisory body. It is heartening to note that some judgments of the panel are on a par with other global regulatory institutions, and its thrust towards greater excellence in market supervision should be encouraged. It is, however, appropriate to ensure its bench strength for policy making is not tempered with and that adequate relevance is provided to its functioning. It is not an area for routine placement of government officials. Finally, as as a regulatory body it should also have an appellate authority to ensure decisions are not circumvented due to wrong interpretation of the nuances involved in competition.

C Gopinath Nair

Kochi

First Published: Tue, April 24 2018. 00:30 IST