New Delhi (Agency): Congress party’s manifesto states that it opposes monopolies and oligopolies and intends to strengthen the Competition Commission of India (CCI) to ensure that India remains an open and competitive economy.
According to competition law experts, the current regime of competition law does not prohibit monopolies but rather the abuse of a monopolistic position.
In anticipation of the elections, the Congress has stated that it will establish a regulatory regime to promote efficiency and competition among ports and airports. To protect shopkeepers and small retail businesses facing intense competition from online businesses, the party has proposed significant tax relief.
India’s main opposition party has also indicated that it would pass a law to curb monopolies in the media, prevent cross-ownership of different media segments, and restrict media control by business organisations. “Congress will refer cases of suspected monopolies to the Competition Commission of India,” its manifesto declares.
Furthermore, the grand old party has also expressed its intention to create a level playing field for all businesses.
“Implementing these policies will be crucial to achieving the desired outcomes without impeding economic growth,” an industry expert commented.
The emphasis on competition issues in the party’s manifesto coincides with various amendments made to the Competition Law, including the introduction of a commitment and settlement mechanism and a leniency-plus regime.
For the first time, the competition law also introduces a deal-value threshold, in addition to asset value, for approving mergers and acquisitions, especially to address high-value transactions in the digital space.
However, the recent Digital Competition Bill has not received full support from all stakeholders, with many from the big tech industry calling for light-touch regulation that does not stifle innovation.
Finance Minister Nirmala Sitharaman recently highlighted the same concern in her meeting with financial sector regulators and new-age fintech companies and startups. She also encouraged these firms to continue innovating while closely monitoring regulatory norms.