Competition regulator sets up panel to brainstorm conflict-of-interest norms

Once the draft regulations are ready, the Competition Commission of India (CCI) is likely to seek public comments before implementing it, one of the persons said on the condition of anonymity.

Regulators frame policies on conflict of interest to ensure their functioning remains fair, transparent, and trustworthy, while fostering public confidence in the institution.

Also Read: CCI to streamline penalty recovery mechanism

The CCI recently set up another internal panel of officials to recommend measures to make its recovery process more robust, Mint reported on 20 October.

The move to explore ways to fine-tune the regulator’s functioning comes at a time when the Parliamentary Standing Committee on Finance, led by Bhartruhari Mahtab, is looking into the track record and funding of some regulators and investigating agencies. 

The Public Accounts Committee of Parliament (PAC), led by Opposition MP K.C. Venugopal, is also conducting a performance audit of some regulators, such as the CCI, Securities and Exchange Board of India, and the Telecom Regulatory Authority of India.

Also Read: Mint Explainer: Why is CCI worried about the impact of AI on competition?

Queries emailed to the CCI on Tuesday seeking comments for the story remained unanswered at the time of publishing.

A welcome step

The central government already has conduct rules for all its employees in all-India services as well as other services. Experts believe the regulator's tailored norms on conflict of interest will help the market and businesses.

Manmeet Kaur, a partner at law firm Karanjawala & Co., said the proposed norms, which specifically address conflict of interest, would be a welcome step for a developing economy like India.

The UK’s watchdog Competition and Market Authority (CMA) board keeps a register of interest for its board and panel members and their families as per its conflict-of-interest policy, Kaur explained.

Similarly, officials of the US Federal Trade Commission are bound by the conflict of interest and ethics regulations, which provide for permanent, two-year and one-year restrictions on aiding/advising/participating in proceedings they were connected to in their official capacity, Kaur said.

Also Read: Who profiteered the most from GST tweaks? CCI has clues

However, these regulations do not prohibit any former employee from taking up employment with any other particular or private employer, Kaur said.

“Balancing fair practices and ensuring impartiality throughout the regulatory process is crucial. This balance mandates clear disclosures and boundary-setting to safeguard the integrity of decisions made by officials. By establishing these conflict-of-interest regulations, the CCI will demonstrate transparency and accountability, essential for gaining public trust and fostering a fair marketplace," said Sonam Chandwani, managing partner at law firm KS Legal & Associates.

Such regulations are required to prevent any potential bias or undue influence, particularly as the CCI’s decisions directly impact competitive dynamics and economic welfare, Chandwani said.

Clear guidelines will not only reinforce the CCI’s commitment to impartiality, but also enhance the country’s regulatory credibility globally, she said.