Panel seeks updates on pending competition cases, CCI’s backlog, and progress of the Draft Digital Competition Bill targeting the digital market.
The Parliamentary Standing Committee on Finance has raised concerns over the reduced budgetary allocations for the Competition Commission of India (CCI), questioning the Corporate Affairs Ministry (MCA) about the revised funding and the status of pending competition cases, official sources said. The revised allocation stood at close to ₹50 crore ($5,9 million).
As the Panel notes, allocation was close to ₹80 crore in 2019-2020. The current revision of funds allocated to the CCI could have a negative impact on competition regulation amid a rapidly expanding and complex market environment.
The Committee has also demanded details regarding the overall pendency of cases with the CCI over the last three years, including an explanation for the steps the regulator took to reduce the backlog.
Delays in adjudicating cases not only impair the enforcement of competition law but also hinder the market’s ability to correct unfair practices swiftly, market experts observed.
Adding to the regulatory uncertainty is the status of the Draft Digital Competition Bill, which has been under deliberation since last year. The Committee has asked for updates regarding the progress of the draft Bill, which aims to address competition concerns in the burgeoning digital market. The status of the Bill remains unclear, raising questions about the roadmap for addressing challenges posed by digital behemoths.
“With a diminished budget, the CCI may struggle to enhance its capacity, adopt new technologies, and bring in specialized talent to deal with increasingly complex competition issues, especially in the digital economy. This could weaken India’s competitiveness on the global stage, as effective antitrust regulation is considered a cornerstone of a fair and thriving market environment,”
an expert emphasized to Hindu Business Line.
Meanwhile, the CCI is also set to face performance review by the Public Accounts Committee (PAC). The review was ordered after Congress made public allegations about the regulator’s lenient approach to clearing certain M&A deals of certain large corporate houses.
Over the years, the Commission has imposed penalties, but the actual recovery remains minuscule — raising eyebrows over its effectiveness in delivering tangible outcomes in its regulatory duties.
Source: The Hindu Business Line
