Chief Economic Advisor V. Anantha Nageswaran addresses the eighth nationwide convention on ‘Economics of Competition Law’, organised by the Competition Commission of India (CCI), in New Delhi, Friday.
| Photo Credit: PTI
Chief Economic Advisor V. Anantha Nageswaran on Friday stated that implementation of certain laws by regulators could perpetuate existing market dominance as he cited the information and privateness norms within the expertise house.
Delivering the keynote handle at a convention organised by the Competition Commission of India (CCI), he emphasised that whereas competitors drives innovation, there’s additionally a distinction between competitors and free markets.
He identified that competitors businesses have to be aware of the unintended penalties of their actions.
“In the technology space, regulators implement data and privacy norms that guarantee users complete access to their data,” the CEA stated. “In such situations, users can end up chasing only the large players since they place a great degree of trust in them.
“This will ultimately lead to loss of competition across similar platforms, concentrating power in the hands of few,” he added.
“What we do with good intent, with public good in mind, can actually end up perpetuating existing dominance,” Mr. Nageswaran stated.
At the National Conference on Economics of Competition Law, he additionally stated that extra competitors itself can be undesirable, together with in sectors like banking, insurance coverage and securities.
“Competition factors that make other sectors more attractive can actually be a cause for systemic instability in these sectors,” Mr. Nageswaran stated, including that regulators and competitors businesses ought to regulate systemic welfare or lack of it.
Banking and monetary companies sectors are topic to norms that promote competitors amongst existing corporations to maintain rates of interest truthful and forestall market dominance by dominant establishments.
Regulators and competitors businesses can work in establishing the framework to stop creation of boundaries within the markets. There is all the time competitors between competitors regulators, and corporations and markets, he famous.
“Benefits bestowed on society as a product of competition forces are often conflated with the effects of the operations of the free market… it is important to distinguish between free markets and competition,” he stated and talked about about certain sectors within the U.S. market.
According to him, telecom, digital companies, well being and prescribed drugs sectors within the U.S. have all displayed a failure of the power of free market enterprises to create a genuinely aggressive setting as posited by principle.
CCI’s Acting Chairperson Sangeeta Verma, Member Bhagwant Singh Bishnoi and National Law University Distinguished Professor M.S. Sahoo, amongst others have been additionally current.
