EDITORIAL ANALYSIS : Balancing competition and sustainability for India
Kartavya Desk Staff
Source: The Hindu
• Prelims: Competition Commission of India (CCI), SEBI, Indian Competition Act 2002, Open Network for Digital Commerce (ONDC) platform etc
• Mains GS Paper II: Achievements in the field of Science and technology, indigenisation of technology, Issues of big tech companies etc
ARTICLE HIGHLIGHTS
• In 2023, the Securities and Exchange Board of India introduced a framework for reporting actions towards sustainability by the corporates.
INSIGHTS ON THE ISSUE
Context
Competition Commission of India(CCI):
Features:
Revised framework for the Business Responsibility and Sustainability Report:
• It requires companies to account for their value chain’s environmental impact
• Enhancing transparency
• Combating greenwashing
• Ensuring that sustainability benefits permeate through the value chain.
Globally competition authorities:
• Japan’s Anti Monopoly Act approach towards the realization of a ‘green society The guidelines were brought to help private businesses navigate themselves in horizontal collaborations. Most activities seeking environmental sustainability are unlikely to restrict competition. These activities have pro-competitive effects that might result in consumer benefits.
• The guidelines were brought to help private businesses navigate themselves in horizontal collaborations.
• Most activities seeking environmental sustainability are unlikely to restrict competition.
• These activities have pro-competitive effects that might result in consumer benefits.
• The European Commission published the draft of revised guidelines on horizontal agreements This will only raise concerns if they entail serious restrictions of competition in the form of restrictions by object produce appreciable negative effects on competition contrary to Article 101(1). Objectives: To address climate change, reduce pollution, limit the use of natural resources, and promote resilient infrastructure and innovation.
• This will only raise concerns if they entail serious restrictions of competition in the form of restrictions by object
• produce appreciable negative effects on competition contrary to Article 101(1).
• Objectives: To address climate change, reduce pollution, limit the use of natural resources, and promote resilient infrastructure and innovation.
• In Singapore, the Environmental Sustainability Collaboration Guidance Note: It aims to provide greater clarity to businesses on how the Competition and Consumer Commission of Singapore (CCCS) will assess collaborations pursuing environmental sustainability objectives. It provides businesses with relevant information so they can safely collaborate in pursuing environmental sustainability objectives without harming competition.
• It provides businesses with relevant information so they can safely collaborate in pursuing environmental sustainability objectives without harming competition.
• Netherlands: A cartel prohibition does not apply if the competitive process is not significantly impeded or if sustainable production offers consumers benefits. The Netherlands Authority for Consumers and Markets has announced a more permissive enforcement position. It states that in certain cases adopt a broader definition of agreements that do not restrict competition and count environmental benefits to society overall. In the U.K., the Competition and Markets Authority launched a market study into the electric vehicle charging sector To consider the development of competition alongside innovation, more choice, lower prices, greater investment, and improvements in quality. A similar comprehensive study on green initiatives and market feasibility would benefit the Indian market.
• The Netherlands Authority for Consumers and Markets has announced a more permissive enforcement position. It states that in certain cases adopt a broader definition of agreements that do not restrict competition and count environmental benefits to society overall.
• It states that in certain cases adopt a broader definition of agreements that do not restrict competition and count environmental benefits to society overall.
• In the U.K., the Competition and Markets Authority launched a market study into the electric vehicle charging sector To consider the development of competition alongside innovation, more choice, lower prices, greater investment, and improvements in quality. A similar comprehensive study on green initiatives and market feasibility would benefit the Indian market.
• To consider the development of competition alongside innovation, more choice, lower prices, greater investment, and improvements in quality.
• A similar comprehensive study on green initiatives and market feasibility would benefit the Indian market.
Competition Commission of India (CCI) and sustainability policies
• India has pledged to achieve net-zero emissions by 2070 In 2023, it ranked fifth on the list of contributors to global warming. The CCI chairperson: CCI will look into sustainability policies for markets.
• In 2023, it ranked fifth on the list of contributors to global warming.
• The CCI chairperson: CCI will look into sustainability policies for markets.
• During the pandemic, the CCI issued an advisory and acknowledged that COVID-19 had caused disruptions in supply chains. It noted that information sharing may be required by businesses to ensure fair distribution of products and services.
• It noted that information sharing may be required by businesses to ensure fair distribution of products and services.
• The Competition Act, 2002 has built-in safeguards to protect businesses from sanctions.
• The CCI only considered such businesses that were necessary to address concerns arising from COVID-19.
• The CCI can consider releasing advisories where enterprises can be exempted if collaborations are for sustainable goals or greener technological innovations when necessary and proportionate.
• Under Section 49(3) of the Competition Act, 2002, the CCI may take measures to promote competition advocacy and awareness.
• It may participate in formulating economic policies that will touch upon competition and sustainability.
• The CCI can emphasize on sustainability policies and enterprise collaboration for greener innovation It can release guidance notes on sustainability agreements and exemption methods under the Competition Act, 2002.
• It can release guidance notes on sustainability agreements and exemption methods under the Competition Act, 2002.
• In 2011, the TRAI released recommendations such as sustainability practices must be a part of the then-proposed National Telecom Policy and that promoted an environmentally friendly telecom sector.
• The CCI can consider including sustainability practices in the National Competition Policy in the future.
Way Forward
• Authorities must focus on encouraging companies to pursue sustainability goals jointly and assess cooperation where enterprises can demonstrate the objective of a sustainability goal.
• Competition cannot remain insulated from sustainability: Combating climate change requires adapting and adopting new technology that reduces resource consumption and increases innovation through sustainability policies.
• For India, to reach its pledged state of net zero emissions, every economic sector must contribute to greener means of production. The CCI can enforce competition policies that improve innovation while considering environmental concerns.
• The CCI can enforce competition policies that improve innovation while considering environmental concerns.
• Competition policy should integrate sustainability economics while considering market failures and collective action problems.
• Through actions like issuing guidelines, the benefits of sustainability will outweigh the potential negative effects on competition. Including sustainability considerations in assessments of cooperation among competitors can be a strong measure of benefitting sustainability in markets.
• Including sustainability considerations in assessments of cooperation among competitors can be a strong measure of benefitting sustainability in markets.
QUESTION FOR PRACTICE
• The Nobel Prize in Physics of 2014 was jointly awarded to Akasaki, Amano and Nakamura for the invention of Blue LEDs in the 1990s. How has this invention impacted the everyday life of human beings ?(UPSC 2021) (200 WORDS, 10 MARKS)