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[2008] 86 SCL 12 (ART)

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COMPETITION LAW
COMPETITION LAWS AND REGULATORY MECHANISM IN INDIA AN INTERFACE
INTRODUCTION

Dibyojyoti Sarkar

C
12

ompetition laws are laws which prohibit anti-competitive

1. Competition l !" #e l !" !$i%$ p#o$i&it nti%ompetiti'e &e$ 'io(# n) (n* i# &("i-ne"" p# %ti%e"+ T$e l !" m ,e ille- l %e#t in p# %ti%e" )eeme) to $(#t &("ine""e" o# %on-"(me#" o# &ot$. o# -ene# ll/ to 'iol te "t n-) #)" o* et$i% l &e$ 'io(#+ T$e Go'e#nment -en%ie" ,no!n " %ompetition #e-(l to#" #e-(l te ntit#("t l !". n) m / l"o &e #e"pon"i&le *o# #e-(l tin- #el te) l !" )e lin- !it$ %on"(me# p#ote%tion+ 0$ile %ompetition poli%/ i" te#m #e*e##in- to t$e &o)/ o* l !" o* St te !$i%$ -o'e#n t$e e1tent. n) &ilit/. to !$i%$ &o)ie" % n e%onomi% ll/ %ompete+ T$e/. $en%e. ttempt to #e"t#i%t p# %ti%e" !$i%$ #emo'e %ompetition *#om t$e m #,et "(%$ " monopol/ n) % #tel+1 2ne o* t$e mo"t )# m ti% e%onomi% )e'elopment" in t$e *in l t!o )e% )e" o* t$e t!ent/-et$ %ent(#/ ! " t$e )emonopoli" tion n) li&e# li" tion o* in)("t#ie" !$i%$ *o# m n/ /e #" $ ) &een t$e p#e"e#'e o* St te-o!ne) monopolie"3 in m n/ % "e" t$i" p#o%e"" ! " %o(ple) !it$ p#i' ti" tion o# p #ti l p#i' ti" tion o* St teo!ne) (n)e#t ,in-"+ T$e p#o&lem" *o# %ompetition poli%/ t$ t #i"e !$e#e *o#me# monopoli"t" #e 4#ele "e)5 into t$e *#ee m #,et #e o&'io("6 " t$e#e i" no e**e%ti'e %ompetition. !$i%$ i" p #ti%(l #l/ li,el/ to &e t$e % "e in t$e e #l/ /e #". t$e/ m / &e &le to %$ #-e e1%e""i'e p#i%e"3 n) t$e/ m / l"o &e &le to )opt t %ti%" inten)e) to *o#e%lo"e ne! %ompetito#" *#om ente#in- t$e m #,et+ At t$e " me time. it i" ne%e"" #/ to en"(#e t$ t *o#me# monopoli"t" p#o'i)e )e7( te "e#'i%e" o* n pp#op#i te "t n) #)+2 8ntil #e%entl/. mo"t o* t$e )e'elopin- %o(nt#ie" $ 'e ope# te) !it$o(t "t#(%t(#e) %ompetition poli%/. n) $ 'e 9("ti*ie) t$e

behaviour and unfair business practices. The laws make illegal certain practices deemed to hurt businesses or consumers or both, or generally to violate standards of ethical behaviour. They, hence, attempt to restrict practices which remove competition from the market such as monopoly and cartel. In this write-up, after exploring the position of regulatory bodies and Competition Commission, the author makes a peep into the European position as exists, especially in !, which has established the Concurrency "orking #arty to manage this precarious issue between the regulators and Competition Commission and some other models $ %&. 'e has further attempted to see whether the same model can be applied in India and whether it would be successful based on the European experience and to find out, which model is best suited for Indian conditions
1+

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M #, :(#"e. Competition L ! o* EC ; 8<. 21*o#) 8ni'e#"it/ =(&li% tion p-+ >+

2+ !!!+e"#%+ %+(,?+++?=2?#ele "e"?2002?o%to&e#?=RI@ATISATI2N+ "p1AComponentl)B 21C1;So(#%e = -el)B1D0E+

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inte#'ention" &/ t$e St te o'e# e%onomi% %ti'itie"+ T$e t ", o* %#e tin- n) m int inin- n %ti'e %ompetiti'e en'i#onment n) )e'elopin- %ompetition poli%/ "eem" to &e %$ llen-in- in )e'elopin- %o(nt#ie". p #ti%(l #l/ in t$e p#e"en%e o* m n/ ot$e# %ompetin- lte#n ti'e". "(%$ " "e%to# l #e-(l to#"+ T$e p#ime 7(e"tion t$ t $ " to &e n"!e#e) i" t$ t to !$ t e1tent t$e"e t!o (t$o#itie". i.e., #e-(l to#/ &o)ie" n) %ompetition %ommi""ion $ 'e to #el/ (pon e %$ ot$e# to "ol'e t$e p#o&lem o* %on*li%tin- #e " o* ope# tion+ T$(". it &e%ome" ne%e"" #/ *i#"t to )i**e#enti te &et!een t$e t!o %on%ept" o* #e-(l to#/ l ! n) %ompetition l !+ T$o(-$ m n/ opinion" e1i"t. /et t$e onl/ %#e)i&le point t$ t eme#-e" i" t$ t - !$ile #e-(l to#/ l ! i" ex ante in n t(#e. %ompetition l ! in mo"t % "e" i" ex poste in n t(#e+ T$en it &e%ome" ne%e"" #/ to loo, &#ie*l/ into t$e )' nt -e" n) )i" )' nt -e" o* $ 'in- &ot$ t$e #e-(l to# o# t$e %ompetition %ommi""ion loo, into %ompetition m tte#" ll &/ t$em"el'e"+ A*te# e1plo#in- &o'e i""(e". !e !ill loo, into t$e E(#ope n po"ition " e1i"t". e"pe%i ll/ in 8< !$i%$ $ " e"t &li"$e) t$e Con%(##en%/ 0o#,in- = #t/ to m n -e t$i" p#e% #io(" i""(e &et!een t$e #e-(l to#" n) Competition Commi""ion n) "ome ot$e# mo)el" (8S)+ :in ll/ *te# &o'e n l/"i". it !o(l) &e%ome pe#tinent to "ee !$et$e# t$e " me mo)el. % n &e pplie) in In)i n) t$ t !$et$e# it !o(l) &e "(%%e""*(l & "e) on t$e E(#ope n e1pe#ien%e n) to *in) o(t !$i%$ mo)el i" &e"t "(ite) *o# In)i n %on)ition"+ 40$e#e t$e#e #e no #(le" t$e #i%$ n) po!e#*(l &(ll/ t$e poo# n) po!e#le""+5 3 4T$e mo#e "t#i%tl/ !e #e ! t%$e). t$e &ette# !e &e$ 'e+54 0$ile %ompetition l !" #e l !" !$i%$ p#o$i&it nti-%ompetiti'e &e$ 'io(# n) (n* i# &("ine"" p# %ti%e". t$e/ p#o$i&it -#eement" in #e"t# int o* t# )e. monopoliF tion n) ttempte) monopoliF tion. nti-%ompetiti'e me#-e#" n) tie-in "%$eme". n). in "ome %i#%(m"t n%e". p#i%e )i"%#imin tion in t$e " le o* %ommo)itie"+ MonopoliF tion n) ttempte) monopoliF tion #e o**en"e" t$ t m / &e %ommitte) &/ n in)i'i)( l *i#m. e'en !it$o(t n -#eement !it$ n/ ot$e# ente#p#i"e+ 8n#e "on &le e1%l("ion #/ p# %ti%e" t$ t "e#'e to en-t#en%$ o# %#e te monopol/ po!e# % n. t$e#e*o#e. &e (nl !*(l+ Alle- tion" o* p#e) to#/ p#i%in- &/ l #-e %omp nie" % n &e t$e & "i" *o# monopoli-

3 4

E+ Repo#t on t$e 8< Go'e#nment 0$ite = pe# on Inte#n tion l Ge'elopment ' il &le t !!!+&i#min-$ m*oe+o#-+(,?#epo#t"?)*i)-2001+$tm+

D+ He#em/ Ient$ m 7(ote) in :#om @ #ietie" o* t$e 0el* #e St te to Con'e#-en%e o* t$e Re-(l to#/ St teA T$e 4E(#ope ni" tion5 o* Re-(l to#/ T# n"p #en%/ ' il &le t $ttp6??!!!+7(&+ %+(, ?"%$ool" ?S%$oolo* =oliti%"Inte#n tion l St()ie" n) =$ilo"op$/?:ileSto#e?E(#ope ni" tion:ile"?:ileto(plo ).C286.en+p)* "e #%$B J22T$eJ20mo#e J20"t#i%tl/J20!eJ20 #eJ20! t%$e)J2CJ20t$eJ20&ette#J20!e J20&e$ 'eJE2J80JKKJ22+

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F tion %l im. &(t it i" )i**i%(lt to e"t &li"$ t$e #e7(i#e) element" o* p#oo*+ L #-e %omp nie" !it$ $(-e % "$ #e"e#'e" n) l #-e line" o* %#e)it % n "ti*le %ompetition &/ en- -in- in p#e) to#/ p#i%in-. t$ t i". &/ "ellin- t$ei# p#o)(%t" n) "e#'i%e" t lo"" *o# time. in o#)e# to *o#%e t$ei# "m lle# %ompetito#" o(t o* &("ine""+ 0it$ no %ompetition. t$e/ #e t$en *#ee to %on"oli) te %ont#ol o* t$e in)("t#/ n) %$ #-e !$ te'e# p#i%e" t$e/ !i"$+ At t$i" point. t$e#e i" l"o little moti' tion *o# in'e"tin- in *(#t$e# te%$nolo-i% l #e"e #%$. "in%e t$e#e #e no %ompetito#" le*t to - in n )' nt -e o'e#+ 5 Li-$ & ##ie#" to ent#/ "(%$ " l #-e (p*#ont in'e"tment. #e7(i#ement" in in*# "t#(%t(#e n) e1%l("i'e -#eement" !it$ )i"t#i&(to#". %("tome#". n) !$ole" le#" en"(#e t$ t it !ill &e )i**i%(lt *o# n/ ne! %ompetito#" to ente# t$e m #,et. n) t$ t i* n/ )o. t$e t#("t !ill $ 'e n mple )' n%e ! #nin- n) time in !$i%$ to eit$e# &(/ t$e %ompetito#. o# en- -e in it" o!n #e"e #%$ n) #et(#n to p#e) to#/ p#i%in- lon- eno(-$ to *o#%e t$e %ompetito# o(t o* &("ine""+6 2n t$e ot$e# $ n). #e-(l tion i" & "e) on #(le" !$i%$ m / -i'e "t#i%t )i#e%ti'e". o# &e &#o )l/ en &lin- in ! /" !$i%$ pe#mit *(#t$e# ne-oti tion3 #(le" m / l"o &e *# me) in ! /" !$i%$ %on%e)e !it$ )i"%#etion o'e# t$ei# )et ile) ppli% tion+ :o# m n/ e%onomi"t". #e-(l tion i" p#im #il/ t$e me n" &/ !$i%$ p#i' te *i#m" #e %on"t# ine) *#om nti-%ompetiti'e &e$ 'io(#+ Co##e"pon)in- to t$e le- li"ti% pp#o %$ i" t$e t# )ition l 'ie! o* t$e Go'e#nment " %omm n) n) %ont#ol #e-ime ope# tin- in p#e%i"el/ )e*ine) p(&li% inte#e"t. !$ile t$e "e%on) 'ie! le )" to *o%(" on t$e ! / in !$i%$ #e-(l tion %#e te" t$e %on)ition" *o# e**i%ient m #,et". t$o(-$ )i"tin%tion i" "ometime" m )e &et!een e%onomi% #e-(l tion n) "o%i l #e-(l tion+ T$e )e*inition $ " &een o**e#e) &/ le )in- n l/"t o* E(#ope n #e-(l tion o* 4"("t ine) n) *o%("e) %ont#ol e1e#%i"e &/ p(&li% -en%/. on t$e & "i" o* le-i"l ti'e m n) te. o'e# %ti'itie" t$ t #e -ene# ll/ #e- #)e) " )e"i# &le to "o%iet/5 &(t i" "till too n ##o! "in%e #e-(l tion i" o*ten )e#i'e) *#om "o(#%e" ot$e# t$ n le-i"l ti'e in"t#(ment. n) &e% ("e t$e )e*inition "till le 'e" 7(e"tion m #, &o(t !$o m ,e" *o#m(l tion" o* !$ t i" #e- #)e) " )e"i# &le *o# "o%iet/. i.e., t$e p(&li% inte#e"t+ Sin%e 4#e-(l tion i" "een &ot$ " *o#m o* p(&li% poli%/ n) " me n" o* %on"tit(tinm #,et"+5 It i" !o#t$ notin- t t$i" point t$ t #e-(l tion it"el* $ " &een "een " "o#t o* &/-p#o)(%t o* neo li&e# l e%onomi% "t# te-ie" e1p#e""e) p#im #il/ t$#o(-$ p#i' ti" tion n) )e#e-(l tion p#o-# mme"+ A %on%ept( l p#o&lem $e#e i" t$ t n ##o! 'ie! oppo"e" #e-(l tion to m #,et" *o#t$ i"

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C+ Co"mo G# $ m ; :ion Smit$. Competition Re-(l tion n) Ne! E%onom/. L #t =(&li% tion. 21*o#). 200D p-+ 6+ 6+ A#ee) . =$illip n) T(#ne#. Gon l) :+. M=#e) to#/ =#i%in- n) Rel te) =# %ti%e" 8n)e# Se%tion 2 o* t$e S$e#m n A%tN. L #' #) L ! Re'ie!. @ol+ 88. p+ 6K> (1K>C)+

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"een " n inte#'ention into no#m ll/ "el*-#e-(l tin- ## n-ement"+ 2* %o(#"e. "ome #e-(l tion" )o im to inte#*e#e !it$ m #,et". &(t ot$e# #e-(l tion" im to %ont#i&(te to t$e p#o%e"" o* %on"t#(%tin- o# %on"tit(tin- n e**i%ient m #,et6 4m #,et" n) #e-(l tion #e %omplement #/ # t$e# t$ n oppo"e) &ot$ #e me n" o* )eli'e#in- p(&li% inte#e"t" # t$e# t$ n #e-(l tion &ein- t$e onl/ me n" o* )oin- "o5. "o t$ t #e-(l tion i" 4 p#o%e"" in !$i%$ e%onomi%". politi%" n) l ! #e ine1t#i% &l/ inte#t!ine)5+ 7 T$(". !e "ee t$ t #e-(l tion %ome" in !$e#e t$e Go'e#nment monopol/ $ " #e%e)e) to let in ne! pl /e#"+ T$e Go'e#nment monopol/ i" *o#m o* %oe#%i'e monopol/ in !$i%$ Go'e#nment -en%/ i" t$e "ole p#o'i)e# o* p #ti%(l # -oo) o# "e#'i%e n) %ompetition i" p#o$i&ite) &/ l !+ T$e #e-(l to#" %t " "(##o- te *o# %ompetition. t le "t (ntil e**e%ti'e %ompetition )e'elop". &/ impo"in- %on"t# int" on !$ t t$e #e-(l te) (n)e#t ,in-" % n )o3 t$e #e-(l to#" #e %$ #-e) !it$ t$e #e"pon"i&ilit/ o* p#ote%tin- %on"(me#". p#omotin%ompetition !$e#e po""i&le n) %ont#ollin- p#i%e"+ In "en"e. #e-(l to#" 4$ol) t$e *o#t5 (ntil %ompetition ##i'e"+ Re-(l te) (n)e#t ,in-" ope# te "(&9e%t to li%en"e" t$ t impo"e o&li- tion" (pon t$em n) t$ t ttempt to p#e'ent %on)(%t. inter alia, t$ t !ill &e nti-%ompetiti'e. )i"%#imin to#/ o# e1ploit ti'e. t$(". &e%omin- ex ante in n t(#e+8 2ne 7(e"tion t$ t #i"e" !$en %ompetition &e-in" to eme#-e in #e-(l te) m #,et i" !$et$e# ex ante #e-(l tion #em in" pp#op#i te6 i* #e-(l to# $ " &een "(%%e""*(l in 4$ol)in- t$e *o#t5 (ntil %ompetition ##i'e". )oe" not t$e "(%%e"" o* it" poli%/ me n t$ t t$ t #e-(l to# "$o(l) no! &e )i""ol'e). le 'in- it to t$e %ompetition (t$o#itie" to p(ni"$ nti-%ompetiti'e &e$ 'io(#+9 A "e%on) 7(e"tion i" !$et$e#. e'en i* t$e#e i" % "e *o# mo'in- ! / *#om ex ante #e-(l tion to t$e ppli% tion o* no#m l %ompetition #(le". t$e "e%to#-"pe%i*i% #e-(l to#. !it$ it" ,no!le)-e o* t$e in)("t#/. "$o(l) e1%l("i'el/ #et in t$e 9(#i")i%tion to ppl/ t$e %ompetition #(le". o# !$et$e# t$i" t ", "$o(l) &e -i'en to t$e 4-ene# li"t5 %ompetition (t$o#it/+
REGULATORY FRAMEWORK IN INDIA VIS A VIS COM!ETITION LAW

". T$e p#o%e""e" o* -lo& li" tion n) li&e# li" tion $ 'e &#o(-$t %on"i)e# &le ! #ene"" to! #)" imp#o'in- t$e %ompetiti'e p#o%e"" in )e'elopin- e%onomie" "(%$ " In)i + 8ntil #e%entl/. mo"t o* t$e )e'elopin-

7 8 9

>+ GIANG2MENIC2 MAH2NE. T$e Inte#n tion li" tion o* Re-(l tion6 Impli% tion" *o# Ge'elopin- %o(nt#ie". $e *(#t$e# point" o(t in t$i" p pe# t$ t )(e to t$e "ome!$ t )i"%#etion #/ n t(#e o* #e-(l tion i" 'e#/ p#one to &e e1ploite) &/ politi%i n" to *o# non-%ompetiti'e p(#po"e"+ 8+ M #tin Mino-(e . Go'e#n n%e & "e) n l/"i" o* Re-(l tion. = pe# No+ E . 0o#,in- p pe# "e#ie" *o# Cent#e on Re-(l tion n) Competition. 2%to&e# 2001 p-+ >+ K+ =#o*+ Ri%$ #) 0$i"$. Competition n) Re-(l tion. p pe# p#e"ente) in t$e :i#"t Li"&on Con*e#en%e on Competition L ! n) E%onomi%" p-+ E-D+

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%o(nt#ie" $ 'e ope# te) !it$o(t "t#(%t(#e) %ompetition poli%/. n) $ 'e 9("ti*ie) t$e inte#'ention" &/ t$e St te o'e# e%onomi% %ti'itie"+ T$e t ", o* %#e tin- n) m int inin- n %ti'e %ompetiti'e en'i#onment n) )e'elopin- %ompetition poli%/ "eem" to &e %$ llen-in- in )e'elopin- %o(nt#ie". p #ti%(l #l/ in t$e p#e"en%e o* m n/ ot$e# %ompetin- lte#n ti'e". "(%$ " "e%to# l #e-(l to#". in en"(#in- %ompetiti'e en'i#onment+ Sin%e in)epen)en%e. t$e t# n"*o#m tion n) )e'elopment o* t$e In)i n e%onom/ $ " t ,en pl %e !it$in pl nne). #i-i)l/ #e-(l te) n) #el ti'el/ %lo"e) e%onomi% *# me!o#,+ S(%%e""i'e In)i n Go'e#nment" $el) t$e 'ie! t$ t t$e Go'e#nment inte#'ention in "(ppo#t o* l #-e-"% le in'e"tment" in t$e p(&li% "e%to# ! " ne%e"" #/ to %$ie'e e%onomi%. politi% l n) "o%i l )e'elopment o&9e%ti'e"+ =(&li% "e%to# ente#p#i"e" !e#e mo"tl/ t$e o(t%ome o* politi% l %on"i)e# tion" n) &(#e (%# ti% #ent-"ee,in!$i%$ %on"t# ine) t$e %$oi%e" on "iFe. te%$nolo-/ n) lo% tion o* t$e"e in"tit(tion" in %ompetiti'e #e-ime+111

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10+ T$ n,om G+ A#(n. REG8LATI2N ANG C2M=ETITI2N6 EMERGING ISS8ES IN AN INGIAN =ERS=ECTI@E. = pe# No+ EK. 0o#,in- p pe# "e#ie" *o# Cent#e on Re-(l tion n) Competition. 2%to&e# 200E p-+ D+ 11+ Ibid p-+ 6+ 12+ S+ S(n) # n) S+<+ S #, #. In)epen)ent #e-(l tion n) %ompetition l !. The Economic Times. 1"t Septem&e# 2000+

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MAn A%t to p#o'i)e *o# t$e e"t &li"$ment o* t$e Tele%om Re-(l to#/ A(t$o#it/ o* In)i to #e-(l te t$e tele%omm(ni% tion. n) "e#'i%e". n) *o# m tte#" %onne%te) t$e#e!it$ o# in%i)ent l t$e#eto+N

T$(". !e "ee t$ t no!$e#e t$e#e i" n/ intention "t te) &/ t$e Le-i"l t(#e t$ t one o* it" o&9e%ti'e" "$o(l) &e to p#omote %ompetition in t$e m #,et+ Anot$e# 'e#/ &inom l/ !it$in t$e A%t i" t$ t TRAI )oe" not $ 'e t$e po!e# to -# nt li%en%e" to *i#m" ope# tin- in t$i" *iel) o* tele%omm(ni% tion"3 it % n onl/ #e%ommen) -# ntin- o# #e'o% tion o* li%en%e". t$e po!e# o* i""(in- li%en%e". $o!e'e#. )oe" not lie !it$ it+11MAn A%t to %on"oli) te t$e l !" #el tin- to -ene# tion. t# n"mi""ion. )i"t#i&(tion
n) ("e o* ele%t#i%it/+++ p#omotin- %ompetition t$e#ein. p#ote%tin- inte#e"t" o* %on"(me#" n)++++N

T$(". !e "ee t$ t %le # m n) te i" -i'en to CERC to p#omote %ompetition l"o (nli,e t$e TRAI A%t !e "ee t$ t t$e #e-(l to# $e#e $ " &een -i'en t$e po!e# to i""(e n) #e'o,e li%en%e" (n)e# "e%tion 1D o* t$e A%t m ,in- it m(%$ mo#e e**e%ti'e in t$e m int inin- )i"%ipline mon- t$e pl /e#" in t$e m #,et" !$i%$ i" not p#e"ent in t$e Tele%om Se%to#+

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1E+ =# )eep S+ Me$t . To! #)" *(n%tion l Competition =oli%/ *o# In)i . A% )emi% :o(n) tion . Ne! Gel$i p-+ 86+ 1D+ Se%tion 11(1)(a) o* t$e TRAI A%tO4#e%ommen) t$e nee) n) timin- *o# int#o)(%tion o* ne! "e#'i%e p#o'i)e#+5 Se%tion 11(1)(f) o* t$e TRAI A%tOM#e%ommen) #e'o% tion o* li%en%e *o# non%ompli n%e o* te#m" n) %on)ition" o* li%en%e+N

1C+ Section 76 of the Electricity ActOMT$e#e "$ ll &e Commi""ion to &e ,no!n " t$e Cent# l Ele%t#i%it/ Re-(l to#/ Commi""ion to e1e#%i"e t$e po!e#" %on*e##e) on. n) )i"%$ #-e t$e *(n%tion" ""i-ne) to it (n)e# t$i" A%t+N

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T$e ot$e# impo#t nt i""(e t$ t #i"e" i" t$e o'e#l p o* 9(#i")i%tion &et!een t$e Competition Commi""ion o* In)i n) t$e"e "e%to# l #e-(l to#" " to !$o !o(l) $ 'e t$e (t$o#it/ to loo, into %ompetition #el te) m tte#"+ Comp #in- t$e t$#ee "t t(te". !e *in) t$e po"ition ' -(e n) m&i-(o("+ 2n%e t$e Competition A%t %ome" into *o#%e. t$e#e !ill eme#-e t$i" %on*li%t " to !$o !ill $ 'e t$e po!e# to in'e"ti- te n) en*o#%e m tte#" #el tin- to %ompetition l !+ :i#"tl/ (n)e# t$e Competition A%t it"el* (n)e# "e%tion 21 o* t$e A%t. po!e# o* #e*e#en%e i" -i'en to t$e "t t(to#/ (t$o#it/ o# t$e #e-(l to# to m ,e #e*e#en%e to t$e Competition Commi""ion on i""(e" # i"e) &e*o#e it )(#in- p#o%ee)in-. !$e#e t$e )e%i"ion o* t$e #e-(l to# m / %ont# 'ene t$e Competition A%t+ 2n t$ t #e*e#en%e. t$e CCI "$ ll *o#! #) it" opinion to t$e "t t(to#/ &o)/+ Lo!e'e#. t$ t opinion i" not &in)in- on t$e (t$o#it/+

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E'en (n)e# t$e TRAI A%t. !e "ee t$ t ll t$e )e%i"ion" o* t$e Re-(l to#/ A(t$o#it/ #e "(&9e%t to t$e #(lin-" o* t$e MRT= Commi""ion (n)e# "e%tion 1D+1T$e nee). t$e#e*o#e. #i"e" to &#in- $ #mon/ &et!een t$e"e l !" n) " p#e"entl/ t$e#e i" no %o$e#en%e in t$e"e l !". t$(". t$e on(" no! lie" on t$e Go'e#nment to %ome (p !it$ t$e (ni*ie) n) %on"i"tent %ompetition poli%/ !$i%$ !o(l) *in ll/ ))#e"" t$e i""(e !$et$e# %ompetition i""(e" !ill &e "olel/ (n)e# t$e p(#'ie! o* t$e CCI o# t$e "e%to# l #e-(l to# o# t ,e mi)! / p t$ o* -i'in- %on%(##ent po!e#" " p#e' lent in E8+
REGULATORY FRAMEWORK EURO!EAN #UK$ !OSITION

%. In t$e 8<. )et ile) #e-(l to#/ #e-ime" !e#e e"t &li"$e) *o# t$e in)("t#ie" t$ t !e#e p#i' tiFe) in t$e 1K80" n) 1KK0". n mel/. tele%omm(ni% tion". - ". ele%t#i%it/. ! te# n) # il t# n"po#t+ T$e"e #e-ime" p#o'i)e. inter alia, *o# p#i%e %ont#ol !$e#e pe#"i"tent m #,et po!e# me n" t$ t t$e no#m l p#o%e"" o* %ompetition !ill not )eli'e# %ompetiti'e p#i%e" to %on"(me#"+ M n/ ot$e# ex ante #e-(l to#/ o&li- tion" #e impo"e) on #e-(l te) (n)e#t ,in-". *o# e1 mple not to )i"%#imin te (n)(l/. to 'oi) %e#t in %#o""-"(&"i)ie" n) to "$ #e e""enti l * %ilitie"+ T$e #e-(l to#" t t$e 2**i%e o* Comm(ni% tion". t$e G " n) Ele%t#i%it/ M #,et" A(t$o#it/. t$e Gi#e%to# Gene# l o* 0 te# Se#'i%e" n) t$e 2**i%e o* R il Re-(l tion #e %$ #-e) !it$ t$e #e"pon"i&ilit/ o* p#ote%tin%on"(me#" n) p#omotin- %ompetition+ 1

16+ Se%tion 1D of TRAI Act A!thority to settle disp!tes.O(1) I* )i"p(te #i"e". in #e"pe%t o* m tte#" #e*e##e) to in "(&-"e%tion (2). mon- "e#'i%e p#o'i)e#" o# &et!een "e#'i%e p#o'i)e#" n) -#o(p o* %on"(me#". "(%$ )i"p(te" "$ ll &e )9()i% te) &/ Ien%$ %on"tit(te) &/ t$e C$ i#pe#"on n) "(%$ Ien%$ "$ ll %on"i"t o* t!o mem&e#" 6 =#o'i)e) t$ t i* t$e mem&e#" o* t$e Ien%$ )i**e# on n/ point o# point" t$e/ "$ ll "t te t$e point o# point" on !$i%$ t$e/ )i**e# n) #e*e# t$e " me to t$i#) mem&e# *o# $e #in- on "(%$ point o# point" n) "(%$ point o# point" "$ ll &e )e%i)e) %%o#)in- to t$e opinion o* t$ t mem&e#+ PP PP PP =#o'i)e) t$ t not$in- in t$i" "(&-"e%tion "$ ll ppl/ in #e"pe%t o* m tte#" #el tintoO (a) t$e monopoli"ti% t# )e p# %ti%e. #e"t#i%ti'e t# )e p# %ti%e n) (n* i# t# )e p# %ti%e !$i%$ #e "(&9e%t to t$e 9(#i")i%tion o* t$e Monopolie" n) Re"t#i%ti'e T# )e =# %ti%e" Commi""ion e"t &li"$e) (n)e# "(&-"e%tion (1) o* "e%tion C o* t$e Monopolie" n) Re"t#i%ti'e T# )e =# %ti%e" A%t. 1K6K3 (b) t$e %ompl int o* n in)i'i)( l %on"(me# m int in &le &e*o#e Con"(me# Gi"p(te" Re)#e"" l :o#(m o# Con"(me# Gi"p(te" Re)#e"" l Commi""ion o# t$e N tion l Con"(me# Re)#e"" l Commi""ion e"t &li"$e) (n)e# "e%tion K o* t$e Con"(me# =#ote%tion A%t. 1K863 (c) )i"p(te &et!een tele-# p$ (t$o#it/ n) n/ ot$e# pe#"on #e*e##e) to in "(&"e%tion (1) o* "e%tion >I o* t$e In)i n Tele-# p$ A%t. 188C+

1>+

!!!+e(# %ti'+%om?en?enl #-ement?p#i' ti" tion-# il! /"-t# n"po#t? #ti%le+

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1 1 2 2 2 2

18+ 1K+ 20+

Al"o see "e%tion E>1 o* t$e Comm(ni% tion" A%t+ Se%tion 2C o* t$e Competition A%t. 1KK8+ Se%tion E1 o* t$e Competition A%t. 1KK8+

21+ Se%tion E6 o* t$e Competition A%t. 1KK8+ :ine" m / not e1%ee) 10 pe# %ent o* t$e !o#l)!i)e t(#no'e# o* n (n)e#t ,in- (see t$e Competition A%t. 1KK8 (Gete#min tion o* T(#no'e# *o# =en ltie")+ 22+ Re-(l tion". 200D+ 2E+ I/ A#ti%le E o* t$e Competition A%t n) 2t$e# En %tment" (Amen)ment) $ttp6??!!!+le-i"l tion+$m"o+-o'+(,?"i?"i200D?200D10>>+$tm noteE+

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11

u t$e "e%to# l ,no!le)-e o*

#e-(l to#3 #e-(l to# o# !it$

u !$et$e# t$e % "e **e%t" mo#e t$ n one #e-(l te) "e%to#3 u u

n/ p#e'io(" %ont %t &et!een t$e p #tie" o# %ompl in nt" n) t$e 2:T3 n)

n/ #e%ent e1pe#ien%e in )e lin- !it$ n/ o* t$e (n)e#t ,in-" o# "imil # i""(e" t$ t m / &e in'ol'e) in t$e p#o%ee)in-"+

Alt$o(-$ on p pe# t$i" "eem" to &e -oo) "/"tem. /et it" p# %ti% l e**e%ti'ene"" % n &e 7(e"tione)+ Iet!een H n( #/ 2001 n) Septem&e# 200C. E8 % "e" $ 'e &een in'e"ti- te) &/ t$e "e%to# l #e-(l to#" ("in- t$ei# %on%(##ent %ompetition po!e#"+ 2* t$e"e. none $ 'e #e"(lte) in in*#in-ement )e%i"ion"22

2 2 2 2 2

2D+ Con%(##ent Competition =o!e#" in Se%to# l Re-(l tion 6 Repo#t &/ Gep #tment o* T# )e n) In)("t#/. 8<. M / 2006 ' il &le t !!!+)ti+-o'+(,?*ile"?*ile2KDCD+p)* p-+ 10+ 2C+ Ibid p-+ E. 1>-18+ 26+ See Anne1 I o* t$e 2:T5" -(i) n%e MCon%(##ent ppli% tion to #e-(l te) in)("t#ie"N. Ge%em&e# 200D. ' il &le t $ttp6??!!!+o*t+-o'+(,?n#?#)onl/#e"?81Ke0DK2-%&>C-DeD8-8 *%%2)*C8K0881%?0?o*tD0C+p)*+ 2>+ 28+ s!pra note 21 p-+ 28+ CEC 8+S+ D6> (2002)+

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&. T$e le-i"l ti'e %$ n-e" in #e-(l tion n) %ompetition p#o'e &e/on) )o(&t t$ t In)i $ " %ome lon- ! / *#om %lo"e) e%onom/+ In)i nee)" to e1 mine mo#e %lo"el/ t$e inte#n tion l e1pe#ien%e" o* #e-(l tion n) %ompetition in )e'elopin- it" o!n "pe%i*i% "t# te-ie"+ A" in m n/ )e'elope) %o(nt#ie". t$e#e "$o(l) &e n tion l %on"en"(" to ,eep t$e i""(e" o* #e-(l tion n) %ompetition o(t o* t$e politi% l -en) . !$i%$ i" "till not $ ppenin- in In)i + A" In)i mo'e" t$#o(-$ t$e #e*o#m p#o%e"". t$e politi% l p #tie" nee) to #e%o-ni"e t$e 'ie!" o* "(&9e%t e1pe#t"+ To !$ t e1tent t$e Go'e#nment i" !illin- to "(##en)e# politi% l %ont#ol o'e# t$e )e%i"ion" on #e-(l tion n) %ompetition )epen)" on !$et$e# t$e politi% l p #tie" #e p#ep #e) to t#e t t$e"e i""(e" on t$e & "i" o* t$e lon--te#m n tion l inte#e"t+
6>-S