The Clash Of Jurisdiction Of CCI And TRAI

Dec 2022
Overlapping Jurisdiction

The Competition Act, 2002 read with section 18 of the legislation delegates to the Competition Commission of India (the “CCI”) the duty of “promoting and sustaining competition” in the Indian economy. This implies that the CCI will have principal jurisdiction to regulate conditions of competition in the relevant market of India.

Whereas, Section 11 of Telecom Regulatory Authority of India Act, 1997 (the “TRAI Act”) delegates power to the Telecom Regulatory Authority of India (“TRAI”) to “facilitate competition and promote efficiency in the operation of telecommunication services so as to facilitate growth in such services”.

The objective of both the legislation is to create an environment that may facilitate fair competition. In fulfilling the concerned objective, the jurisdiction of TRAI and the CCI overlap. They both differ in their mandate and approach which leads to cases of jurisdictional conflicts. From time to time, in many cases judicial courts have tried to resolve jurisdictional disputes between the two.

Resolving the Jurisdiction Dispute:

Finally, On 5 December 2018, a two-judge bench of the Supreme Court in Competition Commission of India v. Bharti Airtel Limited and Others addressed and settled the issue of the ongoing jurisdictional battle between the CCI and TRAI.

The Supreme Court identified a major issue:
(a) Whether the CCI can exercise its jurisdiction when TRAI is already vested with the same?
The Supreme Court opined as follows:
  • The Supreme Court while passing its judgment opined that the questions regarding interconnection agreements and clauses under the same, quality of services, obligations of the service providers are governed under the TRAI Act. The Competition Act is insufficient to decide and deal with the issues arising out of the provisions of the TRAI Act. Therefore, CCI has no jurisdiction on the present matter.
  • But, the Apex Court denied the contention that TRAI has the sole jurisdiction to deal with the issue excluding CCI. TRAI’s determination that the IDOs were in breach would constitute jurisdictional facts based on which the CCI could exercise its jurisdiction. As TRAI had not determined with finality that the IDOs were in breach of the interconnection agreements and that they had acted in concert, no jurisdictional fact was established to give the CCI jurisdiction.
  • The court similarly held that TRAI, as the sect oral regulator, doesn’t have exclusive jurisdiction to rule on competition-related aspects in the industry. It ruled that if TRAI had determined that the IDOs had formed a cartel or colluded to block Jio’s entry, the CCI then would have jurisdiction to decide whether the IDOs’ actions had an appreciable adverse effect on competition. Thus, the jurisdiction of the CCI is not barred, but simply pushed to a later stage.

The judgment has to be appreciated as it has adopted a pragmatic approach and is a step towards certainty, which is indispensable for the growth of any economic law in the country. This decision was necessary to avoid having a concurrent jurisdiction. Going by this way, a balance will be maintained between TRAI and the CCI.

Trending Blogs
Breaking News: Toyota Loses Trademark Battle over Prius at Indian Supreme Court
The plaintiff, in this case, is Toyota Jidosha Kabushiki Kaisha and they seek to prevent the defendant, a spare parts supplier by the name M/S Prius Auto Industries Limited, from the usage of the trademarks- “Toyota”, “Innova”, and “Prius”. According to the finding of the court, two of the three trademarks mentioned, namely Toyota and […]
Read More
Protection Folklores India Intellectual Property Rights
India is a land of diversity when it comes to folk and ethnic culture with hundreds of ethnic, linguistic and religious groups with diverse origins and lifestyles that, over time, intermingled in part and remained untouched in parts over centuries. Perception about folklore differs in India, mainly associated with tribals and simple rural people, rather […]
Read More
The Common Law Protection Of Trade Secrets And The Need For A Statue
Introduction: A trade secret is anything you use in your business that gives you an advantage over your competitors. A trade secret can be a recipe, process, formula, strategy, technique or device that your competitors do not know, do not have, and cannot use. With development in technology, as well as the ease of sharing, […]
Read More
Intellectual Property and its Role in the Pharmaceutical Industry
Intellectual property rights are considered to be an important asset of any corporate unit. It is an indication of the creation of mind and the work that makes one entity different from the other. With better IP or intellectual rights, it would be easy to promote the possible innovations and this would be useful in […]
Read More
Artificial Intelligence and Intellectual Property Law
What is Artificial Intelligence? The division of Science which deals with making machines equipped with human-like intelligence to act in human-like fashion and the exhibit human capabilities is known as Artificial Intelligence (AI). Multiple disciplines like Computer Science, Psychology, Philosophy, Sociology, Mathematics, Biology and Neuron Science contribute to the development of AI. Benefits Of AI […]
Read More
Fluid Trademarks
Fluid mark is often thought of as a conventional mark which can be converted to a living form with some specific representation. In other words, fluid trademark is a modern method of branding that shall help achieve success easily in this digital era. As per the name, the mark tends to change with time. This […]
Read More
Domain Name Disputes in India
Domain Name As Trademarks A domain name which is unique, capable of identifying itself and distinguishing its goods and services from those of others and acts as a reliable source identifier of concerned goods and services on the internet may be registered as a trademark. Domain Name Disputes A domain name dispute would arise when […]
Read More
Trademarking surnames
Having difficult surnames may be challenging to explain others and also when you want to register the name as trademark. As per the trademark and merchandise act of 1958, it is stated that a mark can be refused if one choose a personal name or surname. Though, there is no such clear specification in the […]
Read More
Copyright in the Digital World
These days, there is an increased use of smartphones, computers and tablets and multimedia has shown its great influence in our lives. In the digital world, there are several works used by us. Have you thought whose work are we using? Well, none of us have tried to find out the owner of the work […]
Read More
Drug Patents and Generic Pharmaceutical Drugs
When a drug is manufactured and released to the market in the initial period, it is sold under a certain brand names and can only be availed from a pharmacy after being prescribed by the doctor. The patent of the drug is owned by a few brands who are the only eligible brands to manufacture […]
Read More
X
Download Firm Profile