Do you think the GoI’s recent decision to downsize the members of Competition Commission of India would enhance its efficiency? Comment (200 words)
Refer – Business Standard
Enrich the answer from other sources, if the question demands.
IAS Parliament 7 years
KEY POINTS
· The Union Cabinet recently approved rightsizing of Competition Commission of India (CCI) by halving the number of its members.
· CCI currently has a chairperson and 6 members. With the recent downsizing, it will now have a chairperson and 3 members.
· But, a reduction in members is less likely to serve the perceived cause of efficiency and may prove counterproductive due to various factors.
· Process - The paperwork and processes that are required for companies to file for approvals remain voluminous.
· How efficiently can a small CCI take up these is highly uncertain.
· Decision making - If 7 members widened the scope for dissent, a quorum of 4 hardly diminishes it.
· The question of a possible 2:2 tie and a deadlock in decision remains unaddressed.
· Moreover, the law defines the chairperson as a member. So, the issue of a casting vote becomes contentious.
· Composition - Technology is adding manifold degrees of complexity to commerce.
· The global dimension of business today also requires sectoral expertise.
· Global M&A’s may have unique local consequences or standard global practices may impact Indian consumers differently.
· Given these, general expertise in corporate and M&A law increasingly demands specialist knowledge to supplement.
· Thus, fewer CCI members may not provide scope for the addition of sector experts.
· Sector experts working on a rotating roster of cases may serve the cause of the competition regulator better than a reduced CCI.
