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CCI Gives Green Light For Rivals In Key Sectors To Coordinate Amid Pandemic
NEW DELHI : With India facing a major health emergency due to the novel Coronavirus pandemic, the Competition Commission of India said that anti-trust laws allow rivals in various critical sectors healthcare products and other essential commodities and services can engage in greater coordination without the fear of the any adverse action.
“…the Act has in-built safeguards to protect businesses from sanctions for certain coordinated conduct, provided such arrangements, as mentioned above, result in increasing efficiencies. These provisions will inform the decisions of the Commission,” the anti-trust watchdog said in an advisory to businesses on Sunday.
However, the CCI added that only such conduct of businesses which is necessary and proportionate to address concerns arising from COVID-19 will be considered, and companies should not take advantage of the pandemic to contravene any of the provisions of competition laws.
CCI cited essential medical products like ventilators, face masks, gloves, vaccines, services like testing and logistics, and essential commodities as examples where it would use a more liberal approach to enforcing anti-trust laws.
The Competition Act prohibits conduct that causes or is likely to have a significant adverse effect on competition, with Section 3(3) of the law presuming certain concerted actions between competitors as being anti-competitive.
CCI, however, also placed emphasis on Section 19(3) of the Act which allows coordinated conduct that increase efficiency of the industry, improve production or distribution of goods or provision of services, and promote technical, scientific and economic development.
The measure may likely help companies in various essential sectors like healthcare and pharmaceuticals, telecom, logistics, fast-moving consumer goods, among others to coordinate and better provide their services.
Various ventilator makers, manufacturers of personal protective equipment, among others have started cooperating for increasing productivity. Some ventilator makers have also partnered with certain large automobile manufacturers like Maruti Suzuki India, Tata Motors, Mahindra & Mahindra for making the emergency respiratory equipment.
–Livemint
