CCI avoiding suo motu probes to prevent conflict of interest

New Delhi: Competition Commission is avoiding taking up suo motu cases unless nobody is willing to come forward, as there is a conflict of interest in terms of establishing and also adjudicating such cases, the regulator informed a Parliamentary panel.

The watchdog has the mandate to curb unfair business practices, as well as foster fair competition, across sectors.

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The Committee on Subordinate Legislation of the Rajya Sabha that examined various regulations and guidelines of the Competition Commission of India (CCI) flagged the issue of decline in suo motu cases.

During the committee's meeting on May 19, CCI Chairperson Ravneet Kaur told the panel members that suo motu cases were more frequent during the initial years due to limited public awareness regarding competition law.

"But the Commission felt that there is somewhat of a conflict in that they are establishing a case against a party and also adjudicating it.

"Therefore, they have now avoided taking up a matter suo moto unless nobody else is willing to come forward. Also, the Commission now exercises restraint in sectors where sectoral regulators exist," the regulator said.

The watchdog's submissions are part of the committee's report tabled in Parliament this week.

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"The CCI further informed that out of 1,375 anti-trust cases received till date, 1,237 had been disposed of," the report said.

Meanwhile, the panel's Chairman Milind Murli Deora had also referred to the settlement amount of just Rs 20.24 crore in the Android Smart TV matter, whereas the European Union had imposed a fine of USD 4 billion in the case, as per the report.

In response, CCI Chairperson Ravneet Kaur told the committee that the amount in the Smart TV issue was calculated on the basis of the relevant India turnover of the company derived from the Smart TV operating system market.

"The settlement amount had been determined after taking into account mitigating and aggravating factors, along with the statutory settlement discount of 15 per cent.

"The Chairperson also stated that the matter dealt with by the European Union related to a different market segment involving mobile operating systems and, therefore, was not directly comparable with the Indian case," she informed the committee.

In April last year, Google settled with the CCI a nearly four-year-old case related to alleged unfair business practices with respect to the Android Smart TV market and also agreed to modify its agreement with vendors.

The settlement amount was Rs 20.24 crore.