Question.
Discuss the role of the Competition Commission of India in containing the abuse of dominant position by the Multi-National Corporations in India. Refer to the recent decisions.
(UPSC 2023 General Studies Paper 2 (Main) Exam, Answer in 150 words)
Answer.
The Competition Commission of India is a statutory body under the Ministry of Corporate Affairs, it was established in 2009 under the Competition Act 2002. It plays a crucial role in preventing and limiting the abuse of dominant positions by multinational corporations ( MNCs) and other entities.
The following are recent decisions of the Competition Commission of India ( CCI)-
In 2023, the Competition Commission of India ( CCI) fined WhatsApp for violating privacy and data security.
In 2022, the Competition Commission of India ( CCI) fined Google for abusing its dominant position in Android Play Store policies.
In 2022, the Competition Commission of India ( CCI) fined Tyre Manufacturers for indulging in cartelization.
In 2021, the Competition Commission of India ( CCI) fined Amazon for favoring its sellers and hindering competition.
The following are the important roles of the Competition Commission of India:
Investigation and Enforcement:
The Competition Commission of India ( CCI) assesses the market share and determines the Multi-National Corporations's ability to control prices, limit production, or exclude competition.
The Competition Commission of India ( CCI) investigates and takes action against anti-competitive practices like predatory pricing, price discrimination, and unfair trade practices.
Regulating Mergers and Acquisitions:
The Competition Commission of India ( CCI) evaluates mergers and acquisitions of MNCs to ensure they do not create or strengthen a dominant position that might harm competition in the market.
Fines and Penalties:
The Competition Commission of India ( CCI) has the authority to impose fines and penalties on MNCs found guilty of abusing their dominant position.
In Summary, the Competition Commission of India ( CCI) aims to ensure fair competition, prevent the abuse of dominant positions, and create an environment that fosters innovations, efficiency, and consumer welfare in the Indian Market.
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