Between Jurisdiction and Justice: Competitive Neutrality and the Limits of Coal India

The Constitution of India created State monopolies in the public interest, and Coal India Limited was one such product of its design. The Competition Act, 2002, was enacted to hold all market players accountable for abusive conduct. For two decades, these two frameworks existed in tension, as State enterprises claimed constitutional immunity from competition law. Coal India Limited v. Competition Commission of India settled this jurisdictional question decisively. The Supreme Court held that State ownership does not confer immunity from competition law and that the principle of competitive neutrality applies equally to public and private enterprises. However, the judgment is as significant for what it left unanswered as for what it decided. The Supreme Court determined whether competition law applies to State monopolies, but left unanswered the larger and harder question of what the CCI can actually do to them once it does.