New Delhi, Jun 14 (KNN)  Asking businesses to identify risks which may lead them to violate the competition law, Competition Commission Chairman Ashok Chawla has said the Act applies to enterprises and is "ownership and size neutral".

What it means is that the competition law can apply to small or big companies.
 
Speaking at a conference organised by the Institute of Company Secretaries of India on June-13, Chawla said, “The fundamental objective of Competition Law is to promote and sustain market competition and its rationale lies in the proposition that competition yields social benefits and therefore needs to be nurtured.
 
“The process of competition is, however, not automatic, as vested interest groups, incumbent monopolistic firms, collusive businesses and other stakeholders may distort the process of competition or capture the benefits of market-oriented economic reforms,” he added.
 
Chawla also recommended that enterprises look at effective compliance programmes to identify risks that could lead to violation of fair trade norms.  He called for a reflective compliance programme that should present violations; promote culture of competition; and promote good corporate citizenship.
 
“Many businesses, both domestic and multinational companies, have initiated robust compliance programmes,” he said.
 
On the other hand, President, ICSI, R Sridharan pointed out that developing countries such as India face unique challenges in the enforcement of competition law, referring to problems of underdevelopment, institutional design and government regulation.  (KNN/ES)