CCI proposes increasing time limit under antitrust commitment mechanism

Competition watchdog seeks to address procedural issues in the commitment framework by extending filing timelines and clarifying application requirements

The Competition Commission of India (CCI) on Friday proposed amending its commitment regulations to increase timelines for such applications. This includes extending the period to avail the scheme from 45 days to 60 days from the date of the investigation order, to address administrative and procedural issues.  

 

The Competition (Amendment) Act, 2023 introduced Sections 48A and 48B to create a settlement and commitment mechanism. It allows companies facing antitrust investigations by the CCI to voluntarily offer corrective measures, or agree to certain terms to resolve cases without prolonged litigation.

 

The proposed changes come at a time when a parliamentary panel on subordinate legislation is examining CCI’s regulations for commitment, and settlement, and its penalty guidelines under the new Competition Act.

 

No commitment proposal has been approved by the CCI since the introduction of the provision.

 

The Commission, however, is in the process of taking a final decision on the commitment application by Google, in connection to a probe for alleged unfair business practices related to listing of real money gaming apps on Play Store. The process of public consultation on the commitment proposal has been completed by the Commission.

 

The changes to the commitment regulations have been proposed in light of the experience gained from the implementation of the framework, where certain administrative and procedural issues were identified, the CCI said. These pertained to prescribed timelines, rectification of defects in applications, absence of clarity regarding adjustment of fees and consequences of invalid applications, the Commission said in a background note to the draft amendments.

 

“With a view to enhancing clarity, ensuring procedural certainty, and facilitating smoother administration of the framework, certain amendments relating to timelines and filing requirements are being proposed,” the antitrust watchdog said.

 

The draft regulations have proposed increasing the time limit for concluding commitment proceedings from 130 to 180 days from the receipt of commitment application. The period of extension for these proceedings is also proposed to go up from 130 to 180 days.

 

The CCI has proposed that the Commitment Application complete in all respects in terms of regulation 3 shall be placed for consideration before it in its ordinary meeting within 15 working days (instead of seven currently) from the receipt of such application.

 

“The intent of creating a procedure for commitment is driven by the need to ensure quicker market correction and to free up the scarce resources of the Regulator,” the CCI said.

 

The commitment regulations were notified by the Commission after a public consultation process in March 2024. The intent behind creating these procedures is to reduce litigation and ensure quicker market correction, it said.

 

The settlement and commitment option is only available to those facing inquiry for abuse of dominant position. Cartels are excluded from this option.

 

The CCI has invited stakeholder comments on the draft amendments to commitment regulations by June 29, 2026.