NEW DELHI: The consent of all stakeholders, such as the Centre and businesses, is needed to implement norms, right up to the municipal level, against abuse of market power and other illegal practices restricting free trade and competition among businesses, said Rajeev Kher, member, Competition Appellate Tribunal.
Mr. Kher said technology had been contributing a lot to the evolution of competition reforms. He was speaking at a discussion on “Politics of Competition Reforms in India.”
If the spirit of innovation is not thwarted, technology — which had been touching all walks of life — can help mainstream competition up to the municipal level, he said. The term ‘competition policy’ refers to norms preventing restrictive trade practices and abuse of market dominance.
Cartelisation
Even municipal institutions are grappling with the problem of cartelisation and such anti-competitive practices, Mr. Kher said.
Disturbing an existing configuration overnight can become a problem and the governments are usually reluctant to take up multi-disciplinary policy-making like in the field of competition policy, he added.
“Competition is a pan-economic concept,” which covers issues such as poverty reduction and consumer welfare.
“Therefore, you will need buy-in from the most important stakeholder, which is the government, as well as other stakeholders including the industry to mainstream competition.”
Frederic Jenny, Chairman, OECD Committee on Competition, referred to the link between trade and competition policy saying most trade pacts that exist have a chapter on competition
He said greater competition can lead to increased productivity, investment and economic growth, and in turn reduce poverty. Mr Jenny said in many countries, the poor and the informal sector are the victims of anti-competitive practices that act as a barrier to mobility and access to credit.
Allan Fels, former chairman, Australian Competition & Consumer Commission, lauded the political leadership in India for ensuring the passage of the Goods & Services Tax Bill in Parliament, adding that it was also necessary to lay emphasis on the principle of competition.
He said it was important to ask whether the firms — that may gain owing to a major tax reduction after the GST comes into effect — will pass on a good part of the benefits to consumers or pocket all the gains.
