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Competition Law and Competition Policy in India: How the Competition Commission has Dealt with Anticompetitive Restraints by Government Entities

Author

Listed:
  • Aditya Bhattacharjea

    (Delhi School of Economics)

  • Oindrila De

    (Institute of Economic Growth)

  • Geeta Gouri

Abstract

Can adoption of an antitrust/competition law substitute for a formal competition policy that lays down principles for reforming other government policies that affect competition? We address this question in the context of India, which has a track record of antitrust enforcement as well as a history of extensive controls over the private sector and domination of key sectors by state owned firms. After briefly summarizing these features, we argue that several clauses of the Competition Act, 2002, allow the Competition Commission of India (CCI) to challenge public restraints on competition. We then undertake a detailed review of several cases that have addressed public restraints and that have gradually extended the jurisdiction of the Act. We also identify some areas that remain beyond its reach—government policies that violate competitive neutrality, and discretionary purchases by public buyers—and we note possible social or business justifications for such restraints. Finally, we briefly discuss conflicts between the CCI and other regulatory agencies. We suggest that these remaining challenges can be addressed without laying down a broader policy.

Suggested Citation

  • Aditya Bhattacharjea & Oindrila De & Geeta Gouri, 2019. "Competition Law and Competition Policy in India: How the Competition Commission has Dealt with Anticompetitive Restraints by Government Entities," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 54(2), pages 221-250, March.
    • Handle: RePEc:kap:revind:v:54:y:2019:i:2:d:10.1007_s11151-018-9641-0
    DOI: 10.1007/s11151-018-9641-0
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    References listed on IDEAS

    as
    1. Aditya Bhattacharjea, 2008. "India'S New Competition Law: A Comparative Assessment," Journal of Competition Law and Economics, Oxford University Press, vol. 4(3), pages 609-638.
    2. Aditya Bhattacharjea, 2017. "Sylvania’s Indian Precursor and Its Legacy," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 51(2), pages 173-191, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Antitrust; Competition law; Competition policy; Public restraints; Competitive neutrality; India;
    All these keywords.

    JEL classification:

    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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