The Competition Commission of India (CCI), established under the Competition Act, 2002, is a statutory body tasked with promoting fair competition in Indian markets. One of its key responsibilities is to prevent the abuse of dominant position by enterprises, including Multi-National Corporations (MNCs), to protect consumer interests and ensure a level playing field.

What is Abuse of Dominant Position?

• As per Section 4 of the Competition Act, 2002, abuse of dominance includes practices such as:
  • Imposing unfair or discriminatory pricing (predatory pricing).
  • Limiting or restricting production or technical development.
  • Denying market access.
  • Using dominance in one market to enter or protect another market.

Role of CCI in Checking Abuse of Dominance by MNCs

1. Curtailing Exploitative Pricing Practices:

   Example: Hyundai Motor India (2017), Hyundai (a South Korean MNC) was found guilty of imposing resale price maintenance and restricting discounts by dealers.

2. Preventing Leveraging of Market Power Across Domains: CCI ordered decoupling of Google services from Android licensing.

   Example: Google – Android OS Case (2022): Google was found leveraging its dominance in Android OS to promote its own apps (Google Search, Chrome, etc.)—restricting competition in browser/search markets.

3. Ensuring Equal Market Access:

   Example: Intel India (2019) - CCI found that Intel restricted warranty coverage to only those who purchased through its "authorized sellers". This denied market access to smaller distributors, thus violating Section 4(2)(c).

4. Investigating Preferential Treatment and Discriminatory Contracts: CCI took up a case where exclusive partnerships with select sellers like Cloudtail were questioned.

   Example: Amazon and Flipkart Investigation (2020–2021) - These MNCs favored some sellers with better search rankings and lower commissions.

5. Tackling Data Monopoly and Algorithmic Abuse:

   Example: Google Smart TV Investigation (2021) - Google prevented Smart TV makers from using modified versions of Android, stifling innovation.

6. Promoting Indian Startups and Ensuring Level Playing Field: CCI recently initiated a market study on e-commerce and app economy in India (2021–2022), assessing

   • Commission structures on app stores (Google Play Store, Apple App Store).

   • Preferential algorithms, which hurt discoverability for Indian apps.

7. Influencing Policy and Legislative Reform: Based on CCI’s push The Competition (Amendment) Act, 2023 introduced:

   • Deal value threshold (to catch killer acquisitions by Big Tech).
   • Faster approval timelines.
   • More power for CCI to handle dynamic digital mergers.

Recent Actions Against MNCs

• Technology Sector:

  • Imposed a penalty of INR 213.14 Crores on Meta in 2024 for abuse of dominant position.
  • Investigated Google for anti-competitive practices in digital advertising and app store policies.

• E-commerce Domain:

  • Conducted investigations into Amazon and Flipkart for alleged preferential treatment to select sellers and deep discounting practices.

• Automobile Sector:

  • Probed Hyundai for anti-competitive practices in spare parts distribution and after-sales services.

The Competition Commission of India plays a critical role in safeguarding India's market ecosystem from the abusive practices of dominant MNCs. With the growing influence of digital platforms, CCI’s proactive and deterrent role is vital to ensure competitive fairness, consumer welfare, and economic sovereignty in the evolving globalized economy.