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topicnews · September 20, 2024

Government announces changes to competition laws in connection with CCI investigation | Corporate News

Government announces changes to competition laws in connection with CCI investigation | Corporate News

Under the old provision, if the Director General found a violation, the CCI could only conduct further investigations. The regulator had no explicit power to close the case even if the CCI disagreed with the Director General’s findings.

2 minutes reading time Last updated: September 20, 2024 | 8:37 p.m. IS

The government has notified a provision in the amended Competition Act relating to the investigation procedure, whereby the regulator CCI may issue notices to the parties concerned and allow them time to respond before passing a final order.

The Competition Act promulgated by the Ministry of Corporate Affairs was amended in April 2023 and subsequently various provisions and related regulations were notified.

In a notification, the ministry stated that “the provisions of paragraph (f) of Section 19 of the said Act shall come into force from 19 September”.

This section concerns the investigation procedure of the Competition Commission of India (CCI).

After completion of the investigation, the regulator may issue an order for discontinuance of the matter or an order under Section 27. Under Section 27, the CCI can penalise companies for anti-competitive practices.

“Provided that before making such an order, the Commission shall issue a notice of invitation to comment setting out the violations alleged to have been committed and such other details as may be specified in the rules and shall give the parties concerned a reasonable opportunity to be heard,” says section 19(f), announced on September 19.

The CCI has issued authorising provisions to this effect in its General Rules of Procedure of 17 September.

Referring to the government’s recent notification of Section 19(f), Vaibhav Choukse, Partner (Competition) at law firm JSA, said the amendment will bring greater transparency and procedural fairness in the CCI proceedings.

He further said that the amendment fills the enforcement gap in Section 26, which lays down the procedure to be followed by the CCI in examining a information/complaint until its final disposal, including investigation by the Director General.

Under the old provision, if the Director General found a violation, the CCI could only conduct further investigations. The regulator had no explicit power to close the case even if the CCI disagreed with the Director General’s findings.

DG is the investigative arm of the regulator.

“Similarly, if the Director General does not find any violation and after considering the objections or suggestions of the parties, is of the opinion that further investigation is required, the CCI may order further investigation. However, this does not empower the CCI to pass any final order after such investigation or questioning.

“Therefore, with this amendment, the CCI is empowered to issue appropriate orders in all cases,” he said.

(Only the headline and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First published: September 20, 2024 | 8:37 p.m. IS

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