In an attempt to check cartelisation in sectors like cement and drugs, the Competition Commission of India plans to seek undertakings from industry chambers, associations and companies declaring that they promote healthy competition and are not involved in cartels.
CCI is India's competition regulator. The undertaking will be a part of the CCI's proposed 'competition compliance' programme.
"Chambers and associations often lobby for their members, including tyre, cement, pharmaceutical and other manufacturing companies, which are involved in cartelisation. After the implementation of the programme, we will be able to control such cartelisation," CCI Acting Chairman Vinod Dhall said.
Dhall said companies would also have to make public announcements that they were not involved in cartelisation and obey competition laws.
Companies will also have to educate their employees and ensure that all their subsidiaries also comply with the competition norms. "This initiative will restrict mainly marketing people from bid rigging," he added.
The programme will be announced as soon as the Institute of Company Secretaries of India (ICSI), which has been asked by the CCI to design the programme, submits its final proposals. "As soon as it is finalised, the compliance programme will be sent to all associations and chambers, with the request that they and their members adopt it," Dhall said.
"We do not disagree with the competition commission that cartelisation should be stopped. We totally support the decision," said a Ficci official.
"We will help the government in its effort to control cartelisation and ask our members not to indulge in any such activity," said PHDCCI President Sanjay Bhatia.
India amended the Monopolies and Restrictive Trade Practices Act, 1969, and enacted the Competition Act, 2002, in January 2003. The amendments have been proposed through the Competition Amendment Bill, 2006, which is yet to be approved by Parliament.
The CCI was set up in October 2003 and was supposed to comprise a chairperson and not less than two and not more than 10 other members. Dhall is the sole member at present.