Competition Commission of India directs e-commerce majors to put their houses in order
K Bhavani, INN/New Delhi, @Infodeaofficial
The Competition Commission of India (CCI) has directed the e-commerce platforms to put their houses in order amid growing concerns from the retail sector over threat to their business operations form the technology-driven online market players.
Addressing a PHD Chamber’s Conference today on Competition Law and Intellectual Property Rights- ‘The Clash of Titans’, Mr. Ashok Kumar Gupta, Chairman, Competition Commission of India (CCI) said, Time should be given to e-commerce players to carry out the necessary steps that removed information asymmetry that gave them an unfair advantage.
Mr. Gupta also hinted even at suo motto action if any such concern came to the notice of the Commission. Action will be initiated if affected parties bring their complaints, backed up with data to the Commission, he said
Mr. Gupta said that the Competition Commission of India (CCI) was ordering an investigation into a complaint filed by Delhi Vyapar Sangh, a trade body, on the phenomenal online sale of mobile phones that were affecting the fate of the brick and mortar stores.
The Commission is working with all the stakeholders to remove information asymmetry and improve transparency to positively increase competition, he said.
However, Mr. Gupta said the evolving e-commerce that is estimated to touch $ 200 billion by 2026 from the present $ 38.5 at present, should take the suggestions from the CCI and self-regulate and remove deficiencies if any in their functioning that gave them an unfair advantage vis-à-vis other market players.
The CCI is keeping a close watch, Mr. Gupta said and added the Competition Law as it stood had provisions that were adequate to deal with the emergence of e-commerce as also technology-driven products thrown up by innovations from time to time.
However, he hoped that proposed changes to the Competition Law by the review committee would strengthen the legislation further and bring it in tune with current day requirements.
The Competition Law and Intellectual Property Rights were both integral to the economic growth process. Strong IPR and healthy competition laws were both required and complement each other, Shri Gupta said and added while IPR protected an inventor from rivals the Competition Law stepped to ensure that this IPR is not used to create monopolistic practices.
IPR owners cannot act in an exclusionary and exploitative manner. The Commission will only intervene to see that IPR is not misused and become detrimental to the end-user, the consumer, Shri Gupta added.
Earlier welcoming the keynote speaker, Dr. D K Aggarwal, President, PHD Chamber, said that the role of the CCI becomes more critical given the new challenges emerging in the market place. Technological advancement, research and development are changing the nature of engagement in a section of the market. The Competition Commission is there to prevent any monopolies from getting created, said Dr. Aggarwal.
He also highlighted the different objectives of the Competition Law and IPR. The IPR protects innovations and encourages research and development, and the Competition Law steps in to check misuse of this right. The CCI has sent out a strong message to use its powers within the Act and discipline the industry if found faulty.
Summing up the lively and interactive conference, Mr. Amir Singh Parsich, Chairman, Law & Justice Committee, PHD Chamber, said Shri Gupta had shown how a delicate balance could be drawn between CCI and IPR.
Dr. Sanjeev Gemawat, Co-Chairman, Law & Justice Committee, PHD Chamber also shared his perspective on co-existence of IPR and Competition Law. The conference was marked by two technical sessions viz. Retail vs. E-commerce: Competition Law Issues and IPR Vs Competition Law with special emphasis on Pharmaceutical and Telecom Sector.