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Informist, Tuesday, May 20, 2025

 

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--Sitharaman: Regulatory delays erode potential value of transactions 
--Sitharaman: Delays in regulatory clearance affect India trade pact talks 
--Sitharaman: AI raises questions on data power, mkt access, competition 
--CONTEXT: Sitharaman delivers keynote adress at CCI's 16th Annual Day event 
--Sitharaman:Deepening competition key for growth in energy-challenged world 
--Sitharaman:Deepening competition key for growth in export-challenged world 
--CCI head: Conducting mkt study on AI to manage digital competition issues 
--CONTEXT: CCI Head Kaur speaking at regulator's 16th Annual Day event
 

 

NEW DELHI - In recent years, artificial intelligence has raised questions on market power, access to data, algorithmic biases, and competitive harm, Finance Minister and Corporate Affairs Minister Nirmala Sitharaman said Tuesday, adding that the Competition Commission of India should evolve regulations to counter these "new age" challenges.

 

"Free and fair digital markets are challenged by the emergence of gatekeeper platforms, asymmetries in data access, and cross-border implications of digital business models," she said in her keynote address at the Competition Commission of India's 16th Annual Day event. "The rise of cross-border digital monopolies demands global cooperation and agile regulations."

CCI Chairperson Ravneet Kaur, who was also present at the event, said that India's competition watchdog is conducting a market study on artificial intelligence to manage issues from digital competition. A report based on this study will likely be out in another two months, another CCI official told Informist. 

 

"The challenges globally of competition from sudden spike in electronic way of doing business - digital commerce - have all brought in absolutely newer technology-driven challenges for assessing free market," Sitharaman added.

 

Beyond technology-driven challenges, Sitharaman said that in an export-challenged, energy-challenged and emission-challenged world, increased reliance on domestic growth levers requires ensuring right balance of regulation and freedom. In this context, India's competition regulator has undertaken a shift in their functionality to ensure speedy approval of company mergers, and rationalising modalities to aid growth of businesses in India, she said. Deepening competition in the market will only accelerate growth of the economy, she added. 

 

Elaborating on easing compliance burden for businesses and corporates in India, the finance minister said that regulatory delays often become a bone of contention for countries negotiating free trade pact with India. "..because the ability, the nimbleness, and the readiness of regulators is very keenly watched by investors," Sitharaman said. "So, whether it is litigation, whether it is time-consumed in litigation, or whether when regulators are less transparent, negotiations can get complicated."

 

Currently, India is negotiating trade agreements with a host of nations, including with the US and the European Union. 

 

Additionally, the finance minister said that regulatory delays can lead to uncertainty, disrupt commercial timelines, and potentially erode intended value of transactions. Kaur added that CCI has cut down the time of determining mergers and acquisitions to 150 days from 210 earlier.  End

 

Reported by Priyasmita Dutta

Edited by Tanima Banerjee

 

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