From UPSC perspective, the following things are important :
Prelims level : Non-price competition
Mains level : Data privacy issues
Data privacy can take the form of non-price competition and abuse of dominance can lower privacy protection, a study by the Competition Commission of India (CCI) has said.
Try this PYQ:
Q.Right to Privacy is protected as an intrinsic part of Right to Life and Personal Liberty. Which of the following in the Constitution of India correctly and appropriately imply the above statements?
(a) Article 14 and the provisions under the 42nd Amendment to the Constitution
(b) Article 17 and the Directive Principles of State Policy in Part IV
(c) Article 21 and the freedoms guaranteed in Part III
(d) Article 24 and the provisions under the 44th Amendment to the Constitution
What is Non-price Competition?
- Non-price competition is a marketing strategy “in which one firm tries to distinguish its product or service from competing products on the basis of attributes like design and workmanship”.
- It often occurs in imperfectly competitive markets as it exists between two or more producers that sell goods and services at the same prices but compete through non-price measures.
- Such measures include marketing schemes and greater quality or any sustainable competitive advantage other than price.
What is CCI’s observation?
- The CCI study made observations about non-price factors such as quality of service (QoS), data speeds etc. which are likely to be the new drivers of competitive rivalry between service providers in the telecom sector.
- CCI noted that an aspect of data in the context of competition in digital communications market is the conflict between allowing access and protecting consumer privacy.
Privacy at stake
- Abuse of dominance can take the form of lowering the privacy protection and therefore fall within the ambit of antitrust as low privacy standard implies lack of consumer welfare.
- Privacy can take the form of non-price competition, said the CCI.
- On other non-price factors of competition, CCI found that consumers ranked network coverage at the top followed by customer service despite their Privacy.