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CII cautions cos not to violate Competition Act amid COVID crisis

Ordinarily, companies are not allowed to collaborate as concerted actions between competitors are presumed to cause an appreciable adverse effect on competition.

By: ENS Economic Bureau | New Delhi |
Updated: May 25, 2020 2:12:48 am
“Businesses are cautioned not to take advantage of COVID-19 to contravene any of the provisions of the (Competition) Act,” the Confederation of Indian Industry (CII) said in its manual for corporate collaboration during the Covid-19 oubreak. (File Photo)

Industry body CII has recommended that companies collaborating with competitors, in efforts to deal with the Covid-19 pandemic, document their work and avoid sharing competitively sensitive information to avoid any violations of the Competition Act.

Ordinarily, companies are not allowed to collaborate as concerted actions between competitors are presumed to cause an appreciable adverse effect on competition. But the Competition Commission of India (CCI) had in April published an advisory stating businesses could work together to improve efficiency in delivery of essential goods and services to consumers during the pandemic. The CCI had however noted at the time that businesses should only coordinate efforts in a manner that is “necessary and proportionate to address concerns arising from Covid-19.”

“Businesses are cautioned not to take advantage of COVID-19 to contravene any of the provisions of the (Competition) Act,” the Confederation of Indian Industry (CII) said in its manual for corporate collaboration during the Covid-19 oubreak.

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