Interface between the competition authority and the sector regulators: The emerging issues

This paper analyses the interface issues between the competition authority and the sector-specific regulatory agencies in the infrastructure sectors in India. Based on the international best practices, it brings out the need to establish a synergic, harmonious, and working-level relationship between these agencies in view of their mutually reinforcing roles, and argues that such a relationship is necessary to provide for regulatory clarity and certainty, discourage fora shopping, and reduce transaction costs. Literature review of the international practices suggests that the mechanisms to provide for coordination between sector regulators and competition agencies range from the integration of all the regulatory functions in one agency to formal agreements for cooperation between the agencies and informal interaction through consultations. This paper also makes a set of recommendations that would further strengthen the relationship between the sector regulators and the competition authority in India.