ICRR_Survey1

India
Competition & Regulation Report
(ICRR)
QUESTIONNAIRE
(India Competition Perception Survey)

*Mandatory Fields

*Name:

*Organisation:

Address:

*City/State:

*Email:

*Please
identify the stakeholder group you belong
to, by clicking the radio button
against relevant category:

Policy-maker/Government official (parliamentarians, central or state government officials, regulators)
Business (manufacturers, service providers, representative of business chamber, business associations, service provider’s association)
Civil society organisations (consumer organisations, advocacy groups)
Academia (academic staff at universities/business schools, researchers, representative of research institutes)
Media (economic journalists, editors of newspapers and business magazines)
Other experts/practitioners (please specify)

Each
question below has various options.
We request you to please give your response
by selecting the most appropriate option:

I.
Level of Competition that Prevails in
the economy

1)
Suppose the leading producer of goods
indicated below increases its product
price considerably. Please indicate
if you think there is enough choice
(in terms of suppliers, substitutes,
etc) to negate the effect of such price
rise?

2)
As a consumer, how easy it is to get
following utilities?

3)
Suppose, you wish to switch suppliers
of following utilities, how easy it
is to do so?

4)
How good is the quality of service for
following utilities?

II.
Nature of Practices that prevail in
the market place

5)
These days sellers are running several
promotion schemes to attract customers.
For example, ‘gift assured with every
purchase’, ‘buy 2 and get 1 free’, ‘summer
bonanza’, ‘monsoon hungama’, and the
list goes on. It seems to have become
a competitive necessity to run such
schemes to realise sales, profits and
market share objectives. Please indicate
your opinion on such schemes:

They are in the interest of consumers	They do not deliver promised rewards and are designed to dupe consumers	Some schemes are good, some are designed to dupe consumers	Can’t say/don’t know

6)
Often doctors’ ask patients to get diagnostic
tests done from prescribed laboratories.
Doctors argue that this is a way to
ensure authenticity and quality. Do
you think this practice (also called
‘tied selling’) is appropriate?

Yes, such advice is an effective way to ensure quality, since reliability of diagnostic tests is a matter of concern
No, this is just a means to make easy money and shuts out choice for patients who end up paying higher prices
Not always, some doctors do it to ensure quality, while others do it to make money
Can’t say/don’t know

7)
Often schools ask students to buy uniforms
from prescribed shops/sellers. Schools
argue this is done to maintain uniformity
and quality. Do you think this practice
(also called ‘tied-selling’) is appropriate?

Yes, this helps schools in maintaining uniformity and makes the items easily available to students
No, this is just a means to make profit and shuts out choice for students who end up paying prices higher than that prevailing in the open market
Not always, some schools do it to ensure uniformity and quality, while others do it for making extra money
Can’t say/don’t know

8)
Presently certain professions (medical,
accounting, legal) restrict advertising
by their members. Do you think such
restrictions are justified?

Yes, such restrictions protect the public from incompetents and misleading information
No, restrictions on advertising favours established firms, restricts entry due to bar on advertising, and has anti-competitive effects
No, instead of outright bans, clear parameters should be defined for truth in advertising, ruling out inducements, misleading claims, etc.
Can’t say/don’t know

9)
Certain industries in the country are
characterised by one or two dominant
firms. For example, Reliance holds more
than 50 percent market share in polyester
staple fibre, Grasim holds about 90
percent market share in Viscose Staple
Fibre. Please indicate if you think
such dominant status is a matter of
concern

Yes, emergence of dominant position is a matter of concern	No, there is nothing to worry; market forces provide enough competitive threat	Can’t say/don’t know

10)
The two products mentioned above: polyester
staple fibre and viscose staple fibre
are key intermediates in cotton textiles.
There are complaints of excessive pricing
by users of these intermediates. Similarly,
builders’ complain of excessive pricing
by cement manufacturers. How often do
you think businesses face anti-competitive
practices while purchasing raw materials
or intermediates?

There are many such cases of anti-competitive practices faced by business	There are occasional cases of such anti-competitive practices faced by business	There are no such cases	Can’t say/don’t know

11)
In pharmaceuticals, there are often
complaints that pharmaceutical companies
have to give a huge margin to druggists
to get their products sold. How often
do you think businesses face anti-competitive
practices while selling their goods
or services?

There are many such cases of anti-competitive practices faced by business	There are occasional cases of such anti-competitive practices faced by business	There are no such cases	Can’t say/don’t know

III.
Awareness/Knowledge on Competition and
Regulatory Issues

12)
The country has enacted a new competition
law, Competition Act 2002, to replace
the Monopolies and Restrictive Trade
Practices (MRTP) Act, 1969. Please indicate,
which among the following options brings
out a key feature of Competition Act
vis-à-vis the MRTP Act

Competition Act covers unfair trade practices like misleading and deceptive advertising	Unfair trade practices are omitted from the Competition Act	Can’t say/don’t know

13)
In 1991, amendments were made to the
MRTP Act that removed the requirement
of MRTP companies to seek prior approval
of government before undertaking a merger.
Merger regulation has now returned to
the scope of Indian competition law
and is covered under the Competition
Act. Please indicate which among the
following options brings out the key
features of merger regulation as covered
under the Competition Act, 2002

All mergers would come under the purview of the Act, and pre-merger notification requirement is compulsory
All mergers would come under the purview of the Act, and pre-merger notification requirement is voluntary
Only mergers above a certain threshold would come under the purview of the Act, and pre-merger notification requirement is compulsory
Only mergers above a certain threshold would come under the purview of the Act, and pre-merger notification requirement is voluntary
Can’t say / don’t know

14)
Suppose government issues an order or
enacts a law (or is considering such
a move) that restricts competition.
There are several examples: reservation
of inter-state passenger transport exclusively
for state transport corporations; Agriculture
Produce Market Regulation Act that grants
marketing monopoly to state government;
till recently government gave preference
to public airlines and public telecom
operator in procuring their respective
services; etc). What can the Competition
Commission of India do in such situations?

CCI cannot interfere	CCI can only advocate with government to rationalise its order and allow competition	Can’t say/don’t know

15)
Suppose the Department of Posts is granted
a monopoly in carrying letters less
than 300 grams (which is presently under
discussion). After acquiring this monopoly,
suppose the Department increases significantly
the charges for carrying such letters.
Please indicate if the Competition Commission
of India is empowered to investigate
such action by the Department of Posts
or for that matter any Departmental
Enterprise that behaves in an anti-competitive
manner?

Yes	No	Can’t say/don’t know

16)
Suppose Dr Reddy’s Laboratories Ltd
and Ranbaxy Laboratories Ltd enter into
a joint venture to manufacture a particular
drug, which is not produced by any other
company in the country. Both companies
fix the price of the drug and claim
efficiency in production. Suppose there
are complaints that the drug price is
high. Do you think this practice would
come under the purview of the Competition
Act?

Yes	No	Can’t say/don’t know

17)
Suppose you want to transport goods
from one town to another. You find that
all booking agents in your town are
quoting the same price, which you consider
to be on the higher side. There are
similar practices prevalent at the local
level: cartelisation in car rentals/auto
rickshaw, high tariffs charged by private
transporters to ply in certain areas,
truck operators’ cartel, etc. Do you
think the mechanisms (e.g. competition
authority, consumer forums, any other
agency at state/sub-state level) that
exist to address such practices are
effective?

Yes, always	Yes, sometimes	No, never	Can’t say/don’t know

18)
TRAI has passed a tariff order freezing
cable TV tariffs to that prevailing
as on 26th December 2003 (excluding
taxes). Subsequently, it twice allowed
an inflation-linked hike in tariffs.
There are several other tariff orders
of TRAI that require enforcement at
the local level. Do you think TRAI has
been effective in enforcing its orders
at the local level?

Yes, always	Yes, sometimes	No, never	Can’t say/don’t know

IV.
Nature and Impact of Government policies/measures

19)
Recently some state government issued
an order that every person who buys
a two-wheeler has to buy a helmet from
the same vehicle distributor/seller.
The government argues that this mechanism
would ensure proper enforcement of its
order and serve its objective of public
safety. Do you think, this is a right
way to ensure public safety:

Yes, this would make people compulsorily buy a helmet and is a better means to enforce the order
No, the mechanism adopted is not right; the order actually shuts the market for other helmet suppliers and is anti-competitive in nature
No, the government should instead focus on other means to ensure public safety, e.g. strengthening enforcement on the streets, organise public awareness campaigns, etc.
Can’t say/don’t know

20)
Government is considering a proposal
to bring all essential drugs under price
control in order to make them affordable
and accessible, especially to poor people.
Do you think controlling the price of
all essential drugs is the right way?

Yes, controlling the price of all essential drugs is the best option considering that normal market forces do not operate in drug delivery, as consumers do not make choice for medicines; it is the doctors and retailers that play important role in purchase decisions
No, price control is not required at all; government should instead encourage competition with appropriate monitoring of prices
No, price control should instead be restricted to only a few medicines that have seen excessive price increase, and others should be put on a watch list
Can’t say/don’t know

21)
Monsanto-Mayhco holds a patent for genetically
modified BT cotton seeds. The state
government of Andhra Pradesh has charged
the company of extracting unreasonably
high royalty fees from user farmers
and has made a complaint to the MRTP
Commission. The company claims that
it is within its rights to charge a
price for its invention. In order to
protect its farmers from abusive practices,
the state government of Andhra Pradesh
has fixed a maximum price for BT Cotton
seeds sold by the company. Do you think
state government’s action of fixing
prices is the right way to protect interest
of farmers?

Yes, fixing prices will help the state government protect the interest of its farmers
Yes, the MRTP Commission would not have been effective in curbing abuse due to IPRs, and fixing prices was the best available option with the government
No, price control by government is anachronistic in a market economy; the government should have entrusted the task of fixing prices for patented goods to a specialised body such as the patents authority
No, the government should have instead pursued the Central government to allow more players to produce GM cottonseeds to break Monsanto’s monopoly and encourage competition
Can’t say/don’t know

22)
Several state governments announce from
time to time the policy of providing
free power to farmers. This policy seeks
to provide support to farmers in irrigating
their fields. Do you think this is the
right way to support farmers:

Yes, farm sector in India requires government support and free electricity is an important way to extend government support
No, this policy produces undesirable outcomes, including misuse of electricity, depletion of ground water, and farmers end up getting lesser supplies than what is required
No, government should instead prepare a comprehensive support package and extend it in the most efficient manner possible
Can’t say/don’t know

23)
Several state governments give preference
to units situated within the state in
government procurement. The objective
is to protect local units, particularly
small-scale units and ensure generation
of local employment opportunities. Do
you think this is the right way to meet
the development objectives?

Yes, such policy is desirable to meet overall development objectives
No, with a captive market where there is no threat of competition, the protected units become uncompetitive and inefficient
Such policies are desirable; at the same time government should discourage formation of cartel of local units and encourage competition amongst local units to seek its patronage
Can’t Say/Don’t know

24)
Government is considering granting department
of posts a monopoly in carrying letters
weighing less than 300 grams. The government
argues that this would help the DoP
provide mail facilities at affordable
prices to the whole of the country,
including far-flung rural areas that
are commercially not viable. Please
indicate if you think this is the right
strategy to serve universal service
requirements

Yes, it would enable DoP earn secured revenue and help serve consumers in rural and remote areas, where courier companies do not provide service
No, the DoP should instead focus on leveraging its nationwide network to provide non-mail services (e.g. insurance services, utility payment service, saving schemes, etc.) and raise additional revenues in the process
No, there is already a fragmentation of market in terms of ordinary mail and express mail services, and the proposal would further fragment the market and limit choice for consumers
Can’t say/don’t know

25)
The above instances show the way in
which government seeks to intervene
in the functioning of markets to uphold
public interest. There are several other
instances (e.g. intervention in pricing
of essential commodities to make them
affordable to ordinary consumers). While
the overall objective behind such intervention
may be desirable, please indicate if
you think the manner of government
intervention is right?

Yes, always	Yes, sometimes	No, never	Can’t say/Don’t know

26)
Government often gives purchase preference
to public sector units in government
procurement in order to ensure their
viability in the long run. Do you think
such preference policy is the right
way?

Yes, it compensates PSUs for social objectives they are required to achieve and enables them to compete with private companies
No, it creates uneven field for the private sector players and distorts the market process
No, the government should instead give PSUs autonomy and allow them to operate on purely commercial basis
Can’t Say/Don’t know

27)
There is presently a trend to appoint
retired/retiring bureaucrats and judges
as regulators. Do you think it is right
to appoint them as regulators?

Yes, given India’s political-economy (where line ministers have a tendency to intervene in regulator’s functioning), such appointments allow regulators to maintain a congenial relationship with the government and enhances regulatory effectiveness
No, this precludes appointment of professionals and undermines regulatory effectiveness
Can’t say/don’t know

28)
Some months ago, Department of Telecom
had wanted to issue a policy directive
to TRAI on certain tariff matters (relating
to Access Deficit Charges, interconnection
usage charges, etc). Around the same
time, Minister for Communications announced
his one-India tariff scheme. Do you
think such actions by Minister/Department

Interferes in the functioning of the regulator i.e. TRAI and undermines regulatory autonomy
Gives policy direction for development of a sector and enhances effectiveness of regulatory regime
Sometimes it amounts to interference and sometimes it helps in the development of a sector
Can’t say/Don’t know

29)
Do you think the number of procedures
(on average) it takes an entrepreneur
for starting a business has come down
within the past five years?

Yes, it has come down significantly	Yes, there has been some reduction	No, there is no change	No, the number of procedures has actually increased	Can’t say/don’t know

30)
Suppose, a business unit wishes to switch
suppliers of following services, how
easy it is to do so?

THE
SURVEY ENDS HERE…
THANK YOU VERY MUCH FOR YOUR COOPERATION!