Key challenge for CCI is implementing amendments: Ex-chairman AK Gupta

The Competition Commission of India (CCI) will have to brace itself to operationalise path-breaking amendments, said A.K. Gupta, former chairman of CCI.

A parliamentary panel on finance is looking at the Competition Amendment Bill 2022 and the anti-competitive practices of Big Tech.

Among other measures, the proposed law seeks to regulate measures and acquisitions based on deal value thresholds.

Gupta said the new law proposes settlement and commitment, deal value threshold, leniency as well as regime. "Implementing the provisions of the new Competition Amendment Bill will be a challenge. The new CCI chief will have to hit the ground running due to the short implementation of time," he said.

He also said he didn't see any ambiguity in deal value threshold. He said currently some mergers in the digital markets are not being able to be captured and the target entities command a significant market position because of control over tangibles.

"We would like to capture very few mergers in digital markets and would like to assess mergers that do not have substantial operations in India," he said.

Talking about challenges in dealing with Big Tech, Gupta said that digital platforms have a decisive influence on online competition. They control the infrastructure, terms of access and have rule-setting power. "The power of digital platforms can have an adverse effect on the consumers and competition landscape. The challenge is to do market correction and with speed," he said.

Last week, the CCI imposed a nearly Rs 2,500-crore penalty on Google for abusing its market dominance. The hefty fine on the tech major could have long-term implications for Big Tech companies.

Talking about that, Gupta said the CCI's job is to make sure the competition landscape remains competitive. The CCI order will open a mobile ecosystem to competing apps of Google. "Competing indigenous apps were not getting a chance to flourish. Google was imposing its Google Pay billing systems and denying access to others. Third-party payment systems will now be able to compete," he said.

He said the CCI has given behavioural remedies that are guidelines for other Big Tech companies. "If other Big Tech companies behave in a similar fashion then action can be taken against them as well. They should take a cue from the CCI orders against Google," he said.