Effects-based approach guides CCI scrutiny of digital conduct, innovation, and consumer choice

Comptroller and Auditor General K Sanjay Murthy said the Competition Commission of India was adapting to fast-changing digital markets. Murthy said the regulator was using an effects-based approach. Murthy said the focus was on how online conduct affected innovation and consumer choice. Murthy spoke at an event marking the 17th Annual Day of the Competition Commission of India.

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Murthy warned that weak competition raised costs and reduced value for buyers. Murthy said a lack of rivalry rewarded complacency and locked in inefficiency. Murthy said the consumer could be a household or the Government of India. Murthy said both ended up paying more and getting less when markets were not competitive.

Competition Commission of India focus on digital markets

Murthy said market power in the digital age could come from data and ecosystems. Murthy said dominance might not depend on production scale. Murthy said it could depend on control over ecosystems. Murthy said it could also depend on influence over access in online environments.

Murthy said the Competition Commission of India was tracking the impact of digital conduct. Murthy said the shift moved attention away from market share alone. Murthy said this helped address algorithmic collusion and self-preferencing. Murthy said the approach aimed to keep regulation agile in a digitised Indian marketplace.

Murthy said the regulator had increased scrutiny of Big Tech in recent years. Murthy said the Competition Commission of India investigated e-commerce platforms. Murthy said it penalised platforms for abusing dominance. Murthy said the conduct included exclusionary and exploitative practices across evolving digital markets.

Murthy said upcoming changes would support stronger enforcement in digital cases. Murthy said the adoptions would stress transparency and procedural efficiency. Murthy said the regulator would also use more sophisticated enforcement tools. Murthy linked these steps to the need for quicker responses in online markets.

Competition Commission of India and CAG audit in procurement

Murthy said audit and competition work were linked at a structural level. Murthy said collusion in government procurement could fix prices and rig bids. Murthy said suppliers could also divide markets. Murthy said such conduct harmed competition law and caused measurable losses to the public exchequer.

Murthy said CAG procurement audits supported competition enforcement. Murthy said the audits were complementary, not parallel, to the regulator’s work. Murthy said the audits created institutional pressure for competitive public markets. Murthy said this helped keep India’s large government marketplace genuinely competitive.

Murthy said the Competition Commission of India had acted on audit findings before. Murthy said there were several occasions when CCI took cognisance of CAG reports. Murthy said it inquired into issues highlighted as anti-competitive. Murthy said these reports helped surface risks in public procurement.

Murthy said CAG reports often helped the regulator identify early warning signs. Murthy said they sometimes triggered suo motu investigations. Murthy said they also served as corroborative data in ongoing cases. Murthy described the reports as a practical source for spotting red flags.

Competition Commission of India view on AI and network monopolies

At the event, CCI Chairperson Ravneet Kaur cited network monopolies and discriminatory pricing. Kaur also referred to other anti-competitive practices enabled by technology. Kaur said, "Artificial Intelligence AI has really changed the scale and the speed. The tools are becoming very sophisticated, and it has become very difficult to establish that there are anti-competitive practices happening, she said.\"

The remarks placed digital enforcement and public procurement under a single theme of market fairness. Murthy linked effects-based scrutiny with actions against Big Tech and e-commerce platforms. Murthy also linked competition oversight with audit findings in procurement. Kaur’s comments on AI added to concerns about detecting new forms of misconduct.

With inputs from PTI