Intensify scrutiny of duopoly sectors: Par Panel to CCI

Regulator CCI should intensify proactive monitoring of duopolistic or high-concentration sectors through regular market studies, competition risk assessments, and targeted interventions as they are showing disproportionate market power, a Parliamentary panel has said. The Competition Commission of India (CCI) has the mandate to curb anti-competitive practices and promote fair competition across sectors.

Besides, the Parliamentary Standing Committee on Finance has urged the Corporate Affairs Ministry to expedite the introduction of the Digital Competition Bill, with a time-bound roadmap to ensure effective regulation of large digital platforms.

In a report tabled in the Lok Sabha this week, the panel said that despite enforcement actions and market studies by the CCI targeting dominant firms in digital markets, “several traditional sectors of the Indian economy also display duopolistic or highly concentrated market structures”.

Such structures are resulting in disproportionate market power that may adversely affect consumer welfare, fair competition, and regulatory compliance, as reflected in recent cases, it noted.

There are concerns in certain quarters about apparent duopolistic trends in some sectors, including in the country’s airline industry.

The panel has recommended that CCI intensify proactive monitoring of duopolistic and high-concentration sectors across the economy, covering both digital and traditional markets through regular market studies, competition risk assessments, and targeted sector-specific interventions.

“Such efforts should be supported by stronger coordination with sectoral regulators and relevant stakeholders to address emerging competition concerns, safeguard consumer welfare, and ensure compliance with regulatory frameworks,” the committee said.

The panel also said these measures, complemented by evidence-based and forward-looking monitoring mechanisms, would help detect anti-competitive practices like duopoly and market concentration at an early stage, promote fair competition, and protect consumer interests in a rapidly evolving economic landscape.

Among other aspects, the panel has flagged staff shortage at the CCI, where only 117 out of the 195 sanctioned positions are filled.

It has recommended strengthening the institutional capacity of the regulator by expeditiously filling all sanctioned posts, particularly in the Digital Markets Division.

“The committee also note that the proposed Digital Competition Bill, intended to address the growing dominance of large digital platforms, remains pending, thereby leaving a critical regulatory gap at a time when digital markets are expanding rapidly,” the report said.