Business entities have not yet approached the competition regulator under the newly notified settlement and commitments regulations that are part of the Competition (Amendment) Act, 2023.
Sources indicate that no entity has approached the Director General of the Competition Commission of India, who investigates such cases, to use these new rules. Another source mentioned that the CCI has also not received any application under this provision.
According to sources, “These are relatively new provisions, which have been notified only recently. As of now, no application has been received under them.” However, it is expected that the regulation would be widely used by companies that come under the scrutiny of the CCI for any abuse of dominant position or anti-competitive practices. Both industry and legal experts have welcomed these provisions in the past.
In March of this year, the CCI notified the commitment and settlement regulations after extensive consultations with stakeholders. These regulations are expected to help reduce litigation, especially for tech firms that have been under the CCI’s radar.
The regulations provide for a time-bound process in which entities being investigated by the CCI can offer to settle and commit with the regulator without a formal report being finalized.
This would allow parties to voluntarily comply with the provisions of the Competition Act and address any anti-competitive behavior. However, this provision is not open to entities being investigated for their involvement in cartels.
A settlement application can be made within 45 days of receiving the report from the Director General, while a commitment application must be filed within 45 days of receiving the CCI’s order.
The CCI can impose a penalty of up to 10% of the average global turnover of the preceding three fiscal years on parties found to be at fault.
