CCI Can Scrutinise PSUs: Good for Competitive Neutrality
BY- Jigyasa singh
Introduction
In recent eras, the Competition Commission of India has been monitoring the public sector undertakings very closely so that dominancy is not being misused by them. The above-mentioned aspect is being done in order to promote competitive neutrality and a proper level playing field is granted to all the units which will result in fair competition. The main purpose of scrutinizing the public sector undertakings is to prevent anti-competitive practices and ensure fair trade. The Competition Commission of India is a body that generates awareness among individuals in order to bring transparency and to make individuals aware of the competition laws prevailing in India. Furthermore, if individuals and organizations are aware of these laws then it will result in healthy competition. In other words, we can say The Competition Commission is the step to promote equality in terms of resource allocation, provision of innovative practices, and implementation of policies of competition.
Meaning of Competitive Neutrality
Competitive Neutrality is basically a concept in which equitable opportunity is given to both sectors i.e., the private and public sectors. Further, it is a concept in which the rules and implications are the same for both sectors. In other words, it can be said that a level playing field should be given to both sectors in order to have just and fair competition. In other words, it can be said that neutrality means to remain impartial which will automatically result in a competitive environment.
CCI's Role in Promoting Competitive Neutrality:
The Competition Commission of India is a body that is responsible for regulating and implementing the competition laws in India and it helps in the prevention of anti-corruption practices. Further, its role can be explained in other ways:
1. The interest of the consumers is being protected.
2. It ensures the freedom of trade.
3. It provides a level playing field.
4. It ensures fair competition.
5. Imposition of penalties.
Moreover, Nowadays many are not aware of these competition rules. So, in order to make them aware training and induction programs are conducted by the Competition Commission of India.Further, a case law can be quoted in this regard which is Coal India Limited v Competition Commission of India. In the above case, the Supreme Court of India has given judgment that revolves around the concept of the principle of competitive neutrality.
Furthermore, the main aim of this commission is to enquire and to keep a check upon the fraudulent business practices, and misuse of the dominant positions and to enable a just and equitable environment.It also has the power to halt practices that are anti-competitive in nature.This commission may also direct some changes as and when required.
the main target of the Competition Commission of India is to provide a business-friendly environment.
It pertains to certain Advantages:
1. Ensures fair competition:It results in providing fair competition to both sectors and further competition commission of India prevents the dominant behavior of the government sector and provides a fair competition for both sectors. this fair competition may result in the growth and development of the economy.
2. Equitable opportunities provided: Keeping a check on the public sector undertakings provides equal opportunities to both sectors. Furthermore, equal opportunities result in fair practices and fair competition which is very much important for the growth of the economy.
3. Enhances efficiency: If just and equitable opportunities are provided and every sector will get an opportunity to represent, then automatically efficiency of sectors is enhanced. Further, increased efficiency means overall development of the economy.
4. Ensures a healthy market environment: When monopolistic and anti-corrupt practices are removed by the Competition Commission of India, it creates a healthy environment in the market in terms of free trade practices.Further, a healthy environment of the market enhances competition.
5. Enhances investment opportunities: CCI creates an environment of equality, which makes the Indian market lucrative in attracting both domestic and international investors, which results in the growth and development of the economy.
It pertains to certain Disadvantages:
1.Intervention of the government: It is said that when the Competition Commission of India keeps a check on the Public sector undertakings, it affects the capability of these organizations to fulfill their social needs.
2.Difference in objectives: It is a very important fact that the objectives of the public sector and the private sector are different from one another. So leveling both these sectors may result in a hindrance to the growth of the economy.
3.Delayed Process: When the Competition Commission of India keeps a check on the public sector undertakings, it results in a delayed process which further makes the process ineffective.In other words, it can be said that it hampers the progress of the economy.
4. Ineffective Decision-Making: While scrutinizing the public sector undertakings, the process of decision-making becomes ineffective, and this makes the process lengthy which further results in hampering the development of the economy.
5.Hampering of social and developmental aspects: Level ling both sectors can hamper their social and developmental objectives. As it can be said, every sector has different social and development objectives, so providing a level playing field can hinder their progress.
Conclusion:
The Competition Commission's of India's capability to examine the public sector undertakings is basically a correct step towards the promotion of competitive neutrality.The main aim of this commission is to create a just and equitable competition in the market which enhances the efficiency and growth of both sectors. Further, it provides equal opportunity to both sectors which can result in fair trade practices. It will result in a transformation for both the consumers and industries.Various initiatives have been taken by the Competition Commission of India to promote the competition law such as various workshops and lectures organised to generate awareness. consumers are the ones who also benefit from this i.e., better products and services are provided to them at competitive prices. so, to have the growth of the economy, equality in competition is required.
