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Directions: Kindly read the passage carefully and answer the questions given beside.
There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.
Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.
This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.
Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.
The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms,  something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.
ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.
The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.
Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.
Q. According to the passage, why does the government want to empower smaller entrants rather than clip the wings of giants in various sectors?
  • a)
    To create formal duopolies.
  • b)
    To maintain the dominance of big companies.
  • c)
    To break the hold of top two companies.
  • d)
    To increase commissions on restaurants.
Correct answer is option 'C'. Can you explain this answer?
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Directions: Kindly read the passage carefully and answer the questions...
Empowering Smaller Entrants
The government's strategy of empowering smaller entrants instead of restricting the giants in various sectors is rooted in the desire to foster competition and innovation. Here’s an explanation of why option 'C' is the correct answer:
Breaking the Hold of Top Two Companies
- The government recognizes that in consumer-centric industries, a few dominant players can stifle competition.
- By empowering smaller entrants, the government aims to disrupt the existing duopolies formed by major companies, such as Swiggy and Zomato in food delivery and Amazon and Flipkart in e-commerce.
Encouraging a Competitive Landscape
- This approach is beneficial as it not only encourages new players to enter the market but also enhances consumer choice.
- With more competitors, consumers can enjoy better prices and services, ultimately leading to a healthier marketplace.
Using ONDC as a Tool
- The Open Network for Digital Commerce (ONDC) is a significant initiative aimed at creating an open platform for buyers and sellers.
- It allows restaurants to bypass dominant food delivery apps by enabling them to negotiate delivery arrangements and better deals, thereby increasing competition.
Conclusion
- By focusing on empowering smaller businesses, the government is ensuring that no single or duo of companies can monopolize the market.
- This empowers consumers with more choices and encourages innovation within industries, aligning perfectly with the goal of breaking the hold of the top two companies.
In summary, the government's intention is to create a more balanced market landscape that benefits both consumers and smaller businesses, making option 'C' the most accurate choice.
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Community Answer
Directions: Kindly read the passage carefully and answer the questions...
The passage states that the government's approach is to empower smaller entrants in order to break the dominance of the top two companies in various sectors.
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Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.Why is there unofficial pressure on Amazon and Flipkart to join ONDC, according to the passage?

Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.What is the primary objective of the Open Network for Digital Commerce (ONDC)?

Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.How does ONDC potentially benefit consumers in the e-commerce space?

Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.What is the main issue faced by restaurants with food delivery apps like Swiggy and Zomato, as mentioned in the passage?

The ideal market is the one in which various market participants are independent and act as competitive restraints on each other. This economic liberty of market participants is sine qua non for preserving free and unfettered competition in any market. Sometimes the market participants with an objective to make more money instead of competing with each other on merits may enter into agreements to restrict competition. The words of Adam Smith that “People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public or in some contrivance to raise prices” are still applicable and to some extent true even today. Section 3 of the Competition Act, 2002 (hereinafter referred as the Act) seeks to prohibit such agreements.Section 3(1) of the Act inter alia prohibits an agreement between an enterprise and a person causing or is likely to cause an appreciable effect on competition within India. As the definition of person under the Act includes an individual, it leads to possible interpretation that consumers can be a party to anti-competitive agreements. This proposition contradicts the whole philosophy of competition law behind prohibiting anti-competitive agreements, but still the Act nowhere negates this proposition on the other hand seems to support it.If this proposition is answered in affirmative, it may have multi-dimensional adverse implications on contractual relations. For instance, a consumer will be able to avoid a contract if subsequently such contract is proved to be anti-competitive. This is not something which the Competition Commission doesn't have the power to do, in fact the Commission in the case of Belarie Owners Association v. DLF Ltd. & HUDA has directed DLF to modify unfair conditions in a properly entered contract. However, the rationale behind this decision was that by imposing such unfair terms the DLF has abused its Dominance and not on the ground of such agreement being anti-competitive.The issue as to whether consumers can be party to anti-competitive agreements was raised before Competition Commission in the case of Yashoda Hospital and Research Centre Ltd. v. India Bulls Financial Services Ltd. (IFSL). The Commission held that for application of Section 3 there must be two or more enterprises and there must be an agreement between them. While adjudging the same issue the Gujarat High Court in case of Jai Balaji Industries Ltd. & Ans. v. Union of India has observed that the Consumers have no role to play in anti-competitive agreements. Thus, after these judicial pronouncements it is well established that a consumer can’t be party to any anti competitive agreement as prohibited under Section 3 of the Act.Q. Based on the information in the above passage, can consumers be party to anti-competitive agreements?

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Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.According to the passage, why does the government want to empower smaller entrants rather than clip the wings of giants in various sectors?a)To create formal duopolies.b)To maintain the dominance of big companies.c)To break the hold of top two companies.d)To increase commissions on restaurants.Correct answer is option 'C'. Can you explain this answer?
Question Description
Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.According to the passage, why does the government want to empower smaller entrants rather than clip the wings of giants in various sectors?a)To create formal duopolies.b)To maintain the dominance of big companies.c)To break the hold of top two companies.d)To increase commissions on restaurants.Correct answer is option 'C'. Can you explain this answer? for CLAT 2025 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.According to the passage, why does the government want to empower smaller entrants rather than clip the wings of giants in various sectors?a)To create formal duopolies.b)To maintain the dominance of big companies.c)To break the hold of top two companies.d)To increase commissions on restaurants.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CLAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.According to the passage, why does the government want to empower smaller entrants rather than clip the wings of giants in various sectors?a)To create formal duopolies.b)To maintain the dominance of big companies.c)To break the hold of top two companies.d)To increase commissions on restaurants.Correct answer is option 'C'. Can you explain this answer?.
Solutions for Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.According to the passage, why does the government want to empower smaller entrants rather than clip the wings of giants in various sectors?a)To create formal duopolies.b)To maintain the dominance of big companies.c)To break the hold of top two companies.d)To increase commissions on restaurants.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.
Here you can find the meaning of Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.According to the passage, why does the government want to empower smaller entrants rather than clip the wings of giants in various sectors?a)To create formal duopolies.b)To maintain the dominance of big companies.c)To break the hold of top two companies.d)To increase commissions on restaurants.Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.According to the passage, why does the government want to empower smaller entrants rather than clip the wings of giants in various sectors?a)To create formal duopolies.b)To maintain the dominance of big companies.c)To break the hold of top two companies.d)To increase commissions on restaurants.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.According to the passage, why does the government want to empower smaller entrants rather than clip the wings of giants in various sectors?a)To create formal duopolies.b)To maintain the dominance of big companies.c)To break the hold of top two companies.d)To increase commissions on restaurants.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.According to the passage, why does the government want to empower smaller entrants rather than clip the wings of giants in various sectors?a)To create formal duopolies.b)To maintain the dominance of big companies.c)To break the hold of top two companies.d)To increase commissions on restaurants.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Directions: Kindly read the passage carefully and answer the questions given beside.There are a number of consumer-centric industries in India that have developed into duopolies. In many of them, the government is directly or indirectly breaking the hold of the top two companies. What is even more welcome is that it is doing this by empowering new entrants rather than laying constraints on incumbent giants. An emerging yet effective tool towards this is the Open Network for Digital Commerce, or ONDC.Formal duopolies–where two companies control all of the supply in a market–won’t be created thanks to the vigilance of the Competition Commission of India. However, there are industries such as transport, telecom, e-commerce, and other highly consumer-focussed sectors where two companies are currently acquiring overwhelming market share.This is not unexpected. Indeed, it’s not even unwelcome. India needs big companies in each sector. This is why the government’s approach — to empower other, smaller entrants rather than clip the wings of the giants — is a welcome one.Two of the most visible sectors, as far as customers are concerned, are food delivery and e-commerce. While Swiggy and Zomato dominate the former, Amazon and Flipkart rule the latter. Food delivery and e-commerce are prime examples of sectors where the government has indirectly created a mechanism to break the dominance of the two incumbents. The ONDC platform, set up in December last year by the Ministry of Commerce and Industry, allows sellers and buyers to directly communicate with each other. Recently, ONDC has been creating waves by gradually emerging as an alternative to Swiggy and Zomato in the food delivery space.The dominance of these two food delivery apps, and the fact that they use their own delivery drivers, has allowed them to impose high commissions on restaurants using their platforms, something that the restaurant owners have been protesting against. And while several restaurants in India’s metros opted out of these platforms, they eventually returned for the extensive reach and accessibility offered by these two platforms.ONDC, although still nascent, can be a potential alternative for restaurants in bypassing the food delivery apps. Restaurants will have to organise their own delivery, but the ONDC facilitates this as well. And the restaurants are free to negotiate better deals with companies like Dunzo, Shiprocket, or Loadshare that can deliver the food for them. If this takes off, it could also increase competition in the delivery space as well, further allowing restaurants to negotiate more effectively. In all of this, customers stand to benefit.The ONDC platform stands to do the same for the e-commerce space as well. At the moment, a consumer looking for a product on Amazon or Flipkart can choose from only those items that are available on these platforms. Once ONDC is adopted widely, consumers will have access to products across platforms, thereby giving them more choice in terms of products as well as prices.Amazon and Flipkart haven’t signed on to ONDC yet, but there is considerable unofficial pressure from the government to join.Q.According to the passage, why does the government want to empower smaller entrants rather than clip the wings of giants in various sectors?a)To create formal duopolies.b)To maintain the dominance of big companies.c)To break the hold of top two companies.d)To increase commissions on restaurants.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CLAT tests.
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