Anti-trust penalty on global turnover not an entry barrier to big tech, experts say

The amendment to the Competition Act, 2002, which empowers the Competition Commission of India (CCI) to levy a penalty on the global turnover of companies, will not act as an entry barrier to big tech companies, experts have said.

Anti-trust experts such as Christophe Carugati, Affiliate Fellow, Bruegel, Shruti Hiremath, Senior Associate, Clifford Chance at the United Kingdom, and Allan Asher, Chair, Fairer Future.Au interacted with the media on July 6 at a conference organized by a think-tank called 'The Dialogue.'

Carugati noted that while every law contemplates a maximum penalty, such provisions are rarely used and they may not be imposed so frequently that it will act as an entry barrier to technology companies. Hiremath noted that tech companies would not look at anti-trust penalties as an entry barrier but they will rather evaluate how their products would do in a specific geography. She further said that while companies may look at anti-trust penalties, it may not be the sole reason to decide on whether or not they should enter a nation.

Asher noted that some laws are passed for parliamentary purposes, however it is not necessary that they are used by the regulators frequently, thus a penalty on global turnover may not act as an entry barrier to big tech companies.