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Critical Topics and Their Significance for the UPSC CSE Examination on March 20, 2025

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Competition Commission of India (CCI)

For Preliminary Examination: Current events of national and international Significance

For Mains Examination: GS II - Statutory bodies, Constitutional bodies

Context:

The Competition Commission of India (CCI) on Tuesday raided the offices of media agencies, including GroupM, Dentsu and IPG Mediabrands, as well as the Indian Broadcasting and Digital Foundation (IBDF), an apex body of broadcasters, over alleged fixing of ad rates and discounts, industry sources told FE

Read about:

What is the role of the Competition Commission of India (CCI) in India?

Statutory Body or Constitutional Body?

Key takeaways:

• The Competition Commission of India (CCI) serves as India's primary competition regulatory authority. Operating as a statutory body under the Ministry of Corporate Affairs, it is responsible for implementing the Competition Act, 2002 to foster fair competition and curb activities that could negatively impact market dynamics. The CCI examines cases and conducts investigations into practices that may hinder competition.

• The Commission's key responsibilities include eliminating anti-competitive practices, maintaining market competition, safeguarding consumer interests, and ensuring trade freedom within India. Additionally, it provides expert opinions on competition-related matters when requested by statutory authorities, promotes competition awareness, and conducts training programs.

• As defined by Investopedia, collusion refers to a secretive and often unlawful agreement between competitors to manipulate the market, disrupt its natural equilibrium, and gain an unfair advantage. This typically involves businesses that should be competing but instead cooperate to limit competition.

• The recent enforcement action took place just before the 18th edition of the Indian Premier League (IPL), which is set to begin on March 22. The CCI conducted raids in Mumbai, Delhi, and Gurugram, marking an unexpected move that industry analysts have called "unprecedented." Reports suggest that the CCI first initiated an investigation against media agencies and broadcasters before executing these searches, with speculation that industry rivalries may have influenced the decision.

• Legal experts suggest that the alleged price collusion involves the manipulation of advertising rates, discounts, and inventory, leading to unfair market conditions. Such practices could benefit select players, drive up costs, and reduce choices for consumers. The CCI’s ongoing investigation focuses on these concerns, with the raids forming part of its broader probe into anti-competitive activities.

• The crackdown comes at a time of rapid consolidation within India's media and broadcasting sector. Notably, Star India and Reliance-backed Viacom18 merged their operations in a $8.5 billion joint venture (JV) named JioStar