Arnab Goswami, UPES School of Law, Dehradun
ABSTRACT
The landmark judgment in Coal India Limited v Competition Commission of India (CIL v CCI) marks a significant shift in the regulatory landscape, subjecting Indian Public Sector Units (PSUs) to the provisions of the Competition Act and challenging their entrenched monopolistic practices. This ruling reignites discussions on Competitive Neutrality (CN) in India, highlighting the inherent advantages government-linked entities hold over private counterparts. CN policy aims to create a level playing field where both public and private enterprises operate under fair and equitable rules, free from state preferential treatment. By promoting fair competition and efficient resource allocation, CN enhances consumer welfare and market efficiency. The CIL v CCI verdict is pivotal beyond its immediate implications, representing progress towards achieving CN in India's economic framework. It challenges long-standing government monopolies by applying competition laws to PSUs, promoting a fairer economic environment with increased consumer choice. Additionally, the judgment prompts a critical examination of socialistic concerns raised by Coal India Limited, reflecting the complex interplay between state intervention and market dynamics within the Indian constitutional context. Addressing these concerns necessitates a nuanced approach that balances economic development and social welfare objectives with CN principles. Hence the judgment signifies a major step towards competitive neutrality, emphasizing the need for fair competition and equal rules for all market participants, driving efficiency, innovation, and consumer welfare in the Indian marketplace.
Keywords: Competitive Neutrality, PSUs, Competition Act, Economic development.
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