Discuss the role of the Competition Commission of India in containing the abuse of dominant position by the Multi-National Corporations in India. Refer to the recent decisions. | UPSC 2023 General Studies Paper 2 Mains PYQ

  Question.

Discuss the role of the Competition Commission of India in containing the abuse of dominant position by the Multi-National Corporations in India. Refer to the recent decisions. 

(UPSC 2023 General Studies Paper 2 (Main) Exam, Answer in 150 words)

Answer. 

The Competition Commission of India is a statutory body under the Ministry of Corporate Affairs, it was established in 2009 under the Competition Act 2002. It plays a crucial role in preventing and limiting the abuse of dominant positions by multinational corporations ( MNCs) and other entities.


The following are recent decisions of the Competition Commission of India ( CCI)-

In 2023, the Competition Commission of India ( CCI) fined WhatsApp for violating privacy and data security. 

In 2022, the Competition Commission of India ( CCI) fined Google for abusing its dominant position in Android Play Store policies.

In 2022, the Competition Commission of India ( CCI) fined Tyre Manufacturers for indulging in cartelization.

In 2021, the Competition Commission of India ( CCI) fined Amazon for favoring its sellers and hindering competition. 


The following are the important roles of the Competition Commission of India:


Investigation and Enforcement:

The Competition Commission of India ( CCI) assesses the market share and determines the Multi-National Corporations's ability to control prices, limit production, or exclude competition.

The Competition Commission of India ( CCI) investigates and takes action against anti-competitive practices like predatory pricing, price discrimination, and unfair trade practices.


Regulating Mergers and Acquisitions:

The Competition Commission of India ( CCI) evaluates mergers and acquisitions of MNCs to ensure they do not create or strengthen a dominant position that might harm competition in the market.


Fines and Penalties:

The Competition Commission of India ( CCI) has the authority to impose fines and penalties on MNCs found guilty of abusing their dominant position.


In Summary, the Competition Commission of India ( CCI) aims to ensure fair competition, prevent the abuse of dominant positions, and create an environment that fosters innovations, efficiency, and consumer welfare in the Indian Market.


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