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Competition Comm issues draft regulations for settlement provisions

Stakeholders can submit their comments on the draft regulations from August 24 to September 13, according to communications issued by the regulator

exports, imports, trade

Press Trust of India New Delhi

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Fair trade regulator CCI on Wednesday issued the draft regulations for commitment and settlement provisions under the competition law.
The provisions, introduced in the Competition Act through the amendments made earlier this year, are aimed at ensuring quicker market correction, according to the Competition Commission of India (CCI).
Stakeholders can submit their comments on the draft regulations from August 24 to September 13, according to communications issued by the regulator.
A commitment application should be filed within 45 days from the receipt of CCI order on investigation.
In the case of a settlement application, the same has to be filed within 45 days f receiving the Director General's report.
For both, commitment and settlement applications, the 45-day period could be extended if CCI is satisfied that there is a sufficient cause for extension.
"The settlement amount may extend up to the maximum amount of penalty that would have otherwise been leviable under section 27(b) of the Act," the regulator said.
The commitment mechanism will enable an enterprise against whom an inquiry is on for alleged contravention of the competition law to offer commitments before CCI. Similarly, the settlement mechanism will allow such enterprises to apply for settlement before the regulator.
"The intent of creating a procedure for commitment is driven by the need to ensure quicker market correction," the watchdog said.
The regulations for commitment and settlement provisions would cover the procedures, the factors to consider and period during which commitment and settlement can be offered.
"The intent of creating a procedure for commitment is driven by the need to ensure quicker market correction," the regulator said.
As per the draft norms, the order passed by CCI agreeing to the proposal for settlement shall not be construed as a finding of contravention by it against the settlement applicant. This will be without prejudice to provisions of section 53N of the Competition Act that pertains to compensation.
CCI has the mandate to curb unfair business practices and promote competition in the market place.

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

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First Published: Aug 23 2023 | 11:27 PM IST

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