New Delhi: Competition watchdog CCI will not put road blocks in the functioning of other regulators like TRAI and the RBI, but will only intervene if the policy decisions hamper competition in the market.
"It has been decided in the meeting of the group of ministers (GoM) that the CCI will not intervene in policy matters of sectoral regulators... But after a policy decision is taken, if CCI feels that it is affecting competition, then it could step in," a source said.
The GoM, comprising minsters of law, home affairs, corporate affairs, and telecom, in a meeting held on Friday has almost come to consensus on the jurisdiction of the Competition Commission of India (CCI) and a final view will be taken in a about 10 days, the official said.
"For example," the source said, "CCI cannot have a say when telecom regulator TRAI is fixing price of spectrum, but if later it receives a complaint of anti-competitive practice, the watchdog can intervene."
Sources said that even though banking merger proposals will not require the CCI's approval once the Banking Laws Amendment Bill is passed, the Commission would continue to look at contraventions of Sections (3) and (4) of the Competition Act, which opposes the anti-competition agreement and abuse of dominant position, respectively.
Corporate Affairs Minister Veerappa Moily has been time and again insisting that the CCI would not encroach upon other sectoral regulators' jurisdiction, but complement them.
The Competition (amendment) Bill, 2011, which sought to revise the threshold limits for companies to seek CCI's go ahead, among other things, was referred to the group of ministers as a consensus could not be reached on the Commission's jurisdiction.
Several ministries, like finance and telecom, have been asking blanket exemption from the CCI's purview for its respective sectors.
The CCI, which became fully functional in May 2009, draws its power from the Competition Act 2002 to check anti- competitive practices and abuse of dominant market positions.
First Published: Sunday, July 29, 2012, 12:16