CAG Highlights Importance of Competition Law in India’s Digital Economy at CCI’s 17th Annual Day

Comptroller and Auditor General (CAG) of India Shri K. Sanjay Murthy today addressed the 17th Annual Day commemoration of the Competition Commission of India (CCI) in New Delhi as the Chief Guest, highlighting the growing importance of competition law and fair markets in shaping India’s economic future.

The event also witnessed the release of the “CCI Advocacy Booklet 2026” in both English and Hindi by the Chief Guest.

Competition Central to India’s Economic Transformation

In his address, Shri K. Sanjay Murthy congratulated the Competition Commission of India on completing 17 years of its functioning and observed that competition has become increasingly critical to India’s economic growth, innovation and consumer welfare.

He noted that India is currently undergoing rapid structural transformation across sectors such as:

• Fintech

• Logistics

• Green energy

• E-commerce

• Digital public infrastructure

According to the CAG, competition in today’s economy extends beyond traditional pricing issues and increasingly involves:

• Data access

• Interoperability

• Innovation ecosystems

• Digital platforms

Digital Economy Changing Nature of Market Power

Shri Murthy emphasized that in the digital era, market power is often derived not from production scale alone, but from control over:

• Data

• Digital ecosystems

• Technology platforms

He stated that competition law has therefore become a core pillar of economic governance in the modern economy.

“In the digital age, market power is often derived from control over data and ecosystems rather than traditional scale of production,” he observed.

The CAG highlighted that competitive markets are essential for:

• Economic efficiency

• Consumer protection

• Innovation promotion

• Resource optimisation

CCI Praised for Tackling Cartels and Abuse of Dominance

Shri Murthy commended the Competition Commission of India for its work since 2009 in addressing:

• Cartelisation

• Abuse of dominant market positions

• Anti-competitive practices

He said CCI’s efforts have contributed significantly to building a culture of competition and market fairness in India.

According to him, specialised regulatory oversight is essential to ensure both public and private resources are utilised optimally in markets free from distortions.

CAG and CCI Seen as Complementary Regulatory Institutions

The Comptroller and Auditor General highlighted the close synergy between competition enforcement and public auditing.

He specifically pointed to practices such as:

Bid-rigging

which impose significant costs on public procurement systems and government resources.

Shri Murthy noted that competition enforcement and audit mechanisms complement each other in ensuring that government marketplaces remain transparent and competitive.

He also referred to instances where CCI had used CAG reports to identify:

“Red flags” in public procurement

indicating growing institutional cooperation between the two bodies.

AI and Advanced Analytics to Strengthen Competition Enforcement

With public procurement systems becoming increasingly digital, the CAG highlighted the potential role of:

• Artificial Intelligence (AI)

• Advanced analytics

• Data-driven monitoring systems

in improving the detection of anti-competitive practices.

He stated that these technologies can significantly enhance:

• Regulatory effectiveness

• Market monitoring

• Fraud detection

• Competition enforcement outcomes

Shri Murthy also underlined ongoing efforts to strengthen institutional capacity and improve public procurement systems across government sectors.

CCI Chairperson Reflects on Evolution of Competition Framework

In her welcome address, CCI Chairperson Smt. Ravneet Kaur reflected on the Commission’s evolution over the past 17 years.

She noted India’s transition from the earlier:

Monopolies and Restrictive Trade Practices (MRTP) Act regime

which followed a command-and-control model, to a more trust-based competition framework under the Competition Act.

She highlighted the role of landmark judicial pronouncements in shaping the Commission’s enforcement approach over the years.

Major Regulatory Reforms Undertaken by CCI

The Chairperson highlighted several important reforms and initiatives undertaken by the Commission during the last financial year.

Cost of Production Regulations Revised

The Cost of Production Regulations were revised for the first time since 2009 to align them with:

• Evolving market realities

• Judicial developments

• International best practices

First Settlement Approved in Digital Markets Case

Following amendments to the Competition Act and notification of new regulations, CCI approved its:

First settlement in a major digital markets case

which demonstrated faster resolution mechanisms for competition concerns.

Green Channel Mechanism Gains Popularity

Smt. Ravneet Kaur also noted that the:

Green Channel mechanism for combinations

continues to gain traction and now accounts for more than:

20% of total filings

The mechanism allows faster approval of certain combinations and mergers deemed unlikely to raise competition concerns.

AI Study Highlights Emerging Competition Risks

Referring to the growing complexity of digital markets driven by rapid technological change, the CCI Chairperson said the Commission had undertaken a:

Market Study on AI and Competition

The study examined how Artificial Intelligence is reshaping competition dynamics.

According to the Chairperson, while AI enhances:

• Efficiency

• Innovation

• Consumer experience

it also raises concerns regarding:

• Market concentration

• Ecosystem lock-in

• Self-preferencing

• Algorithmic collusion

She warned that the opacity of AI systems creates additional challenges for regulators attempting to detect anti-competitive conduct.

Guidance Note Issued for AI Self-Audit

The AI market study also produced a guidance note designed to help enterprises conduct:

Self-audits of AI systems

at various stages of:

• Development

• Deployment

• Monitoring

The objective is to ensure compliance with competition norms in rapidly evolving digital environments.

CCI Advocacy Booklet 2026 Released

In view of recent legislative and regulatory developments, the CCI released the:

“Advocacy Booklet 2026”

to promote greater awareness and compliance among stakeholders.

Officials stated that the booklet aims to improve understanding of competition law and regulatory expectations among businesses, industries and institutions.

Capacity Building Needed for Digital Market Regulation

The Chairperson stressed that the increasing complexity of competition regulation requires stronger institutional capacity building within the CCI.

She stated that beyond traditional expertise in law and economics, regulators increasingly need specialists in:

• Data science

• Digital technologies

• Forensic analysis

• AI systems

• Digital market analytics

to effectively address emerging challenges in modern markets.

“As the CCI enters its 18th year, it is committed to remain firm in enforcement, fair in procedures, and forward-looking in its vision,” she said.

Event Attended by Industry and Policy Leaders

The programme concluded with a vote of thanks delivered by Smt. Sweta Kakkad, Member, CCI.

The event witnessed participation from a wide range of stakeholders, including:

• Government officials

• Regulatory bodies

• Public sector undertakings

• Industry representatives

• Legal experts

• Academic institutions

• Chambers of commerce

Competition Law Becoming Increasingly Important in Digital India

Experts note that the discussions at the event reflect the growing importance of competition regulation in India’s rapidly expanding digital economy.

As sectors such as AI, e-commerce, fintech and digital public infrastructure continue to evolve, regulators are increasingly focusing on ensuring:

• Fair competition

• Consumer protection

• Innovation-friendly markets

• Transparent digital ecosystems

The event highlighted the expanding role of CCI as a critical institution in balancing innovation, market growth and fair competition in India’s emerging digital economy.