CCI vs TRAI : Apex Court Does The Balancing Act

The Apex court has finally put an end to the turf war between the Telecom Regulator and the market regulator by recognizing the different roles played by both regulators in their respective fields and observing that regulators in each sector have assumed great significance with the advent of globalization leading to a free market economy.Elucidating their respective roles,. The Apex court has finally put an end to the turf war between the Telecom Regulator and the market regulator by recognizing the different roles played by both regulators in their respective fields and observing that regulators in each sector have assumed great significance with the advent of globalization leading to a free market economy.Elucidating their respective roles, the Supreme Court, rejected the argument of the Telcos and the TRAI that the jurisdiction of Competition Commission of India stands totally ousted in the telecom sector. Demystifying the regulatory roles of both the authorities, the Supreme Court opined that the CCI was entrusted with duties, powers and functions to deal with different kinds of anti-competitive practices that may have an adverse effect on competition like creation of barriers to new entrants, driving existing competitors out of the market and foreclosure of competition by hindering entry into the market.The TRAI was constituted for orderly and healthy growth of the telecommunications infrastructure and the powers and functions assigned to TRAI include ensuring technical compatibility and effective inter-relationship between different service providers. Taking note of the Supreme Court’s decision, the Telecom Appellate Tribunal, on 13th December, 2018, set aside TRAI’s tariff order, 2018 which, inter alia, defined “significant market power” and “ predation” and held that powers and jurisdiction of a statutory authority like CCI should not be blocked or abridged by issuing orders. According to TDSAT “The yardsticks must be objective and known to all the TSPs or else the task must be left to be dealt with by a complete code such as under the Competition Laws so that the competent authority can decide a complaint alleging predation” The Delhi High Court has also upheld CCI’s jurisdiction in cases which are in the regulatory domain of special sector regulators like the Petroleum and Natural Gas Regulatory Board and the Patent’s Authority.