??Legislative Support for New Commitments and Settlements Framework

Hello LinkedIn community,

I'm excited to share a legislative development that underscores the transformative nature of the Commitments and Settlements framework within the revised Competition Act, 2023. This framework introduces a progressive mechanism for businesses, especially those facing inquiries on potential abuse of dominant positions.

?? Legislative Support: Unanimous Passage

Both the Lok Sabha and Rajya Sabha have unanimously passed the Competition (Amendment) Bill, 2023. This landmark legislative action amends the two-decade-long Competition Act of 2002, with the introduction of the Commitments and Settlements framework being one of its key outcomes.

?? Key Points: Commitments and Settlements Framework

To provide you with a quick overview:

? Choice and Strategy: Companies under scrutiny now have the option to choose between two paths: Commitments and Settlements. These paths offer avenues for proactive resolution, reducing the time and complexity associated with traditional litigation.

?? Commitments and Settlements Scheme: The anti-trust regulator has introduced draft regulations for the Settlement and Commitment scheme under the new Competition Act. A commitment scheme can be chosen within 45 days after a prima facie order is passed by the CCI. Alternatively, settlement can be opted for after the investigation report by the Director General, CCI. Settlements may involve a payment, which could extend up to the maximum penalty amount under the Act, while commitment incurs only an application fee.

?? Inquiry Abeyance: During both commitment and settlement processes, the inquiry against the company will be suspended until the CCI reaches a final decision.

?? Stakeholder Engagement: The CCI has invited stakeholders to provide written comments on the draft regulations, fostering a collaborative approach to shaping these mechanisms.

The comments submission period ends on September 13, 2023, and can be done through this link: Public Consultation Submission

?? CCI's Power and Transparency: The CCI has the authority to accept or reject proposals within a specified timeline after seeking clarifications from the applicants. The provided information can also be used against the applicants or other parties to the inquiry who are not part of the proceedings.

?? Legislative Backing: The Competition (Amendment) Act, 2023 introduced Section 48A and 48B of the Act to create a settlement and commitment mechanism. The intent behind these procedures is to reduce litigation and expedite market corrections, as stated by the CCI.

?? Resolving Anti-Competitive Conduct: Notably, this act will enable companies charged with anti-competitive conduct, including Big Tech, to approach the regulator to resolve the matter expeditiously.

?? Oversight and Expertise: The CCI can appoint agencies, including accounting firms, consultancies, law firms, and other reputable professionals, to monitor the implementation of the proposed scheme.

?? Thanking the Contributors: Gratitude goes to the Government of India Official , and the Competition Commission Of India for championing these landmark changes. This framework aims to expedite market corrections, minimize litigation, and offer a balanced, efficient regulatory environment.

?? Applicability and Considerations: The Settlement and Commitment option is available only to those facing inquiries for abuse of dominant positions, excluding cartels. The Commission may consider the level of cooperation, nature of disclosure, and other factors while applying a settlement discount of up to 15%, as outlined in the draft regulations.

?? Driving Market Efficiency: This framework aims to expedite market corrections, minimize litigation, and offer a balanced, efficient regulatory environment.

Let's embrace this new chapter and contribute to fostering a competitive, transparent, and efficient business landscape in India.

A special shoutout of gratitude to The Economic Times ,for illuminating this inspiring story.

#competitionlaw #CCI #competitioncommissionofindia

Stay curious,

Hemant

?? This newsletter is based on an article published in The Economic Times on August 24, 2023, Delhi Edition. Copyright for the original article belongs to The Economic Times .

"DISCLAIMER: The original article is authored by a contributor from The Economic Times, and the following post includes my analysis and personal views. The opinions expressed here are solely mine and do not reflect the opinions of The Economic Times, the original author of the article, or the Competition Commission of India (CCI)." , Any reference to The Competition Commission of India (Settlement) Regulations, 2023, or Competition (Amendment) Act, 2023 belongs to CCI."