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CII Tells Cos to Tread with Caution to Ensure Compliance with Competition Law Amid Covid-19
During the time of pandemic, the Confederation of Indian Industry (CII) directed companies to observe the competition rules when seeking collaborations with their competitors. There are regulations already in the Competition Act for keeping check on unfair business practices as per advisory issued by Competition Commission of India (CCI). The regulations prohibit businesses from unfair collaborations unless it increases efficiency.
The industry body also cautioned companies not to defy any provisions of the Competition Act by giving justification of Covid-19 situation. It said that only such conduct of businesses which is necessary and proportionate to address the concerns arising out of Covid-19 situation would be considered. The body said it understands that the situation may demand collaborations to tackle hardships and loss but companies must note that anti-trust laws still apply and all decisions made by them must be coherent with the provisions of the Competition Act. It further said that CCI would keep a close watch on any legal infringements in this period.
It added that enterprises which are dominant in the market should not limit production, refrain from exorbitant pricing and mixing of non-essential services/goods with essentials. Those companies which deal in essentials shouldn’t enter into any exclusive distribution agreements.
The Director General of CII Mr. Chandrajit Banerjee said that they are aware of the challenges faced by different businesses at this time including collaborations to cope with supply management, sharing of distribution network and infrastructure. However, any deviation from the existing laws and rules can’t be accepted.
