CCI Says Recent Competition Norms To Apply To All Cases Under Investigation
The Parliament passed several amendments to the Competition Act last year, leading to the Competition Commission of India (CCI) recently notifying regulations related to these changes
The Competition Commission's chief, Ravneet Kaur, revealed that the recently notified competition regulations on settlement, commitment, leniency plus, and global turnover will apply to cases that are being investigated by the Competition Commission.
As per a PTI report, she highlighted the significance of the new regulations in facilitating swift market corrections. Notably, the Parliament passed several amendments to the Competition Act last year, leading to the Competition Commission of India (CCI) recently notifying regulations related to these changes. After extensive public consultations, the watchdog finalised regulations concerning settlement, commitment, leniency plus, and turnover.
Explaining the leniency plus regime, the CCI Chairperson emphasised its role as an incentive for entities to disclose cartel existence and outlined the importance of getting information about cartelisation to establish existance of the cartel.
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Penalties For Violations Of Competition Law
Moreover, the CCI now possesses the authority to levy penalties of up to 10 per cent of a company's global turnover for violations of competition law. This provision holds significant implications for companies with diverse products or services, particularly amid the CCI's investigations into the digital market.
In addition, the penalty could might be up to 30 per cent of the average relevant turnover/ income, subject to the legal maximum, which is 10 per cent of the global turnover.
Responding to a question about the new regulations' applicability, Kaur said, "Since the regulations have been notified, they will be applicable to all cases, including those that are under investigation". She underscored the participatory approach taken in finalising the regulations, involving input from industry representatives, legal experts, consumer groups, and the academic community.
"We believe that such a participatory approach is crucial in crafting regulations that are balanced, pragmatic, and conducive to fostering an environment where competition thrives, innovation is encouraged and consumers are protected," Kaur also said.
The CCI has issued important decisions over the years against a number of companies for engaging in anti-competitive behavior, particularly in the digital market. The relevant entities have filed legal challenges against some of the orders.
Responding to a query on most of the regulator's rulings facing legal challenges, Kaur added "There may be legal challenges for the rulings, but by and large, the Competition Commission of India's views have been accepted by the courts." Kaur further added that cases against cartels and those pertaining to the digital market are being expedited by the regulator. At the regulator, the Digital Market Data Unit (DMDU) has also begun operations.
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