Business entities are yet to approach the competition regulator under the newly notified settlement and commitments regulations that are part of the Competition (Amendment) Act, 2023.
According to sources, no entity has approached the Director General, Competition Commission of India, which investigates such cases for use of these new rules. Another source indicated that the CCI has also not received any application under this provision.
“These are relatively new provisions, which have been notified only recently. As of now, no application has been received under them,” sources said. However, it is expected that the regulation would be widely used by companies that come under the scanner of the CCI for any abuse of dominant position or anti-competitive practices. Both industry as well as legal experts have in the past welcomed these provisions.
The CCI had in March this year notified the commitment and settlement regulations after extensive consultations with stakeholders that is expected to help reduce litigation, especially for tech firms that have been under the scanner of the CCI.
The regulations allow for a time bound process under which entities that are being investigated by the CCI can offer to settle and commit with the regulator without a formal report being finalised.
This would enable parties to voluntarily meet the provisions of the Competition Act and remedy any anti competitive behaviour. The provision is however, not open to entities that are being investigated for their role in cartels.
A settlement application can be made within 45 days of the receipt of report of the Director General by the settlement applicant. Similarly, a commitment application shall be filed within 45 days from the receipt of the order passed by the CCI.
A penalty of as high as 10% of the average global turnover of the preceding three fiscals can be levied on errant parties by the CCI.