Page 40 - August-2020-Issue

ARTICLE

Excessive Pricing:

CCI Intervention should

be Carefully Measured

Pranjal Prateek*

he COVID-19 pandemic excessive pricing. For example, advantage of the current situa-
has caused supply-de- the UK Competition and Markets tion. In the US, President Trump
Tmand disruptions in many Authority (CMA), in addition to announced signing an execu-
sectors. Accordingly, we have launching a COVID-19 task force tive order under the Defence
witnessed a significant volatil- which, among other areas, seeks Production Act that among oth-
ity in prices of certain goods or to act on exploitative pricing, er areas, seeks to prevent price
services, especially those which also sent warning followed by gouging, in addition to announce-
have been temporarily in high an open letter to the pharmaceu- ment of possible enforcement by
demand including medical goods tical and food and drink indus- both Department of Justice and
and services. There has been a tries advising them not to charge Federal Trade Commission. The
widespread alarm regarding ex- unjustifiably high prices lest it Competition Commission of India
ploitative pricing or price goug- is constrained to take direct en- (CCI) has published its own advi-
ing in relation to protective or forcement action. Similarly, the sory which is primarily focussed
essential products such as face European Competition Network on how it would evaluate busi-
masks, gloves, sanitizers, medi- of the national competition au- ness cooperation during these
cines and even hospital services. thorities of the EU issued a joint times but importantly also cau-
Globally, several competition statement stating that regula- tions businesses “not to take ad-
authorities have issued strong tors’ would not hesitate to take vantage of COVID-19”. In India,
warnings against profiteering by action against companies taking uniquely, the Legal Metrology

* Pranjal Prateek is a competition lawyer with Khaitan & Co. Views expressed are personal.

40
40 KaleidOscope May, 2020KaleidOscope May, 2020