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


*Mandatory Fields

*Name:         


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*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?

Product

No
choice

Some
choice

Enough
choice

Can’t
say/don’t know

Toothpaste









Coffee







Wrist
watch








Electrical
fan








Refrigerator







Colour
Television








Computer







Bicycle







Motor
cycle








Car
(small segment)








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


Service

Very Difficult

Difficult

Easy

Very Easy

Can’t say/don’t know
Mobile
connection










Land
line connection










Cable
TV connection










Electricity
connection










LPG
connection










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


Service

No option to change supplier

Very Difficult

Difficult

Easy

Very Easy

Can’t say/don’t know
Mobile
service provider (please remember
this would imply a change in
your number)












Land
line service provider (please
remember this would imply a
change in your number)












Cable
TV operator












LPG
supplier












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


Product/Service

Very bad quality

Bad quality

Good quality

Very good quality

Can’t say/don’t know
Mobile
telephone










Land
line










Cable
TV










Electricity









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?


Service

No option to change supplier

Very Difficult

Difficult

Easy

Very Easy

Can’t say/don’t know
Internet/leased
circuit service












Accounting/auditing
service












Management
Consultant service












Courier
service












Advertising
agency service












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