Proposed Amendments to India’s Competition Regulations Under Review
The Competition Commission of India (CCI) is seeking stakeholder feedback on proposed amendments to the CCI (General) Regulations, 2009, in light of recent changes to the Competition Act. The amendments stem from the Competition (Amendment) Act, 2023, which introduced new provisions and updated existing ones in the Competition Act, 2002. The CCI aims to align the general regulations with this new framework.
Key proposed changes include outlining a process for implementing and monitoring orders under various sections of the Act. This involves the appointment of independent agencies, such as accounting firms, management consultancies, or professional organizations, to oversee order implementation, ensure compliance, and report any non-implementation to the CCI. Additionally, these agencies will maintain confidentiality and avoid conflicts of interest, with the CCI holding the authority to suspend or terminate their engagement if necessary.
Payment to these agencies will be made by individuals or entities involved in proceedings, who filed applications under the CCI (Settlement) Regulations, 2024, or the Competition Commission of India (Commitment) Regulations, 2024. Furthermore, these payments will be contingent on the satisfactory performance of the agencies’ responsibilities and are to be deposited with the regulator or as directed.
Another significant change in the new draft focuses on the procedure for imposing penalties. The amendments specify that no penalty order or direction will be made unless the affected party has received a show cause notice or been given a reasonable opportunity to present their case.
Stakeholders have been invited to submit comments on the draft amendments by July 8. The CCI emphasized that these changes are designed to strengthen the regulatory framework and enhance the effective enforcement of competition norms in India, in line with the provisions of the Competition Amendment Act of 2023.