PHDCCI organised a Seminar on The Competition Act 2002 & The Competition (Amendment) Act 2023: Issues & Challenges at PHD House, New Delhi.
Ms. Ravneet Kaur Chairperson, Competition Commission of India, in her address provided an overview of the amendments to the Competition Act. She said that numerous amendments have been made in the Competition (Amendment) Act of 2023 with the objective of making it robust and addressing new challenges as the country is progressing towards a trust based regime.
Speaking about the amendments she informed that the time limit for reviewing mergers and acquisitions has been reduced from 210 days to 150 days. There have been changes with respect to introduction of deal value thresholds instead of asset value thresholds provided earlier. She also deliberated on the new settlement and commitment framework, which aim at reducing litigations. She mentioned that there will be changes in certain rules including green channel approvals for mergers and acquisitions. Further, she touched on the implications of artificial intelligence, mentioning concerns about deep fakes and dark patterns that could have competitive impacts. She said that advocacy and Focus on internal capacity building needs to be focussed upon.
Mr. Hemant Jain, Sr. Vice President, PHDCCI said the Competition Act is a cornerstone of fair trade practices and market regulation. It is designed to promote and sustain competition in the marketplace, ensuring that businesses operate on a level playing field. By preventing anti-competitive practices such as monopolies and abuse of dominant positions, the Act protects consumer interests, fosters innovation, and encourages efficiency. The rapid technological advancements have transformed the market dynamics, making the Competition Act a necessity to ensure fair competition and to protect consumer interests, Mr Jain added.
Mr. P K Rustagi Chair, Corporate Affairs Committee, PHDCCI, highlighted the importance of the Competition Act in prohibiting the abuse of dominance. He stated that competition provides consumers with wider choices and benefits the economy by supporting the optimal utilization of resources which in turn reduces production costs. Mr. Rustagi appreciated the amendments in the Act, mentioning the notable provisions such as guidelines for penalties, the definition of relevant turnover, the introduction of a limitation period that eliminates ambiguity, and the reduction of the review time from 210 to 150 days. He called for CCI to continue promoting advocacy. He emphasized the importance of trade associations, which play a crucial role in industry and government relations.
Dr. Ranjeet Mehta, Executive Director, PHDCCI commended Ms. Kaur for being the first lady chairperson of the Competition Commission of India. He appreciated the efforts of CCI for fostering a pro-competitive culture and highlighted the importance of understanding the amendments in the Competition Act to ensure fair play in the market and to foster a competitive environment. Further, Dr. Mehta acknowledged that emerging markets have their own challenges and noted that CCI is doing a commendable job in addressing these challenges. Further, he requested CCI to consider the interests of MSMEs as their support would be highly beneficial.
CS Suresh Pandey Council Member, The ICSI emphasized the importance of understanding the risks associated with the scale of the domestic industry. He said that the days of monopoly are gone, and todays fast-moving businesses hold a significant market share. In the context of the Competition Act, he suggested considering non-financial aspects as well. Referring to the IPOs and the security market, he noted that the market is witnessing change as the country is progressing in Amrit Kaal. He also appreciated the streamlining of the approval process and informed Ms. Kaur that many companies operating in India are not registered, which needs attention.
Concluding Remarks & Vote of Thanks was given by Mr. Rishi Kapoor Co-Chair, Corporate Affairs Committee, PHDCCI who in his address appreciated CCI for undertaking continuous and regular assessments for promoting competition. It has been recently reported that a study is being undertaken to assess the impact of artificial intelligence (AI) on competition, efficiency and innovation in key user industries.
