House panel on subordinate legislation examining CCI commitment regulations

Rajya Sabha panel on subordinate legislation has begun examining the Competition Commission of India's commitment regulations that allow firms to avoid abuse of dominance investigations

The Rajya Sabha Committee on subordinate legislation has started examining the Competition Commission of India’s (CCI’s) commitment regulations which allow companies to avoid investigations for abuse of dominance by committing to change their conduct.

 

The committee, headed by Member of Parliament Milind Deora, met Ministry of Corporate Affairs Secretary Deepti Gaur Mukherjee and senior CCI officers on March 10 to hear them on the commitment regulations framed under the Competition Act, according to information on the Rajya Sabha website.

 

The commitment regulations were notified by the CCI after a public consultation process in March 2024.

 

The standing committee chose the commitment regulations for a detailed examination in 2024. 

 

This committee’s function is to scrutinise whether the government’s power to make rules, regulations, bye-laws, schemes, or other statutory instruments is exercised properly and in accordance with the general objects of the Constitution or the relevant Act. 

 

A company can offer a commitment scheme only within 45 days after the CCI passes a prima facie order for investigation. It can also be submitted before the party receives the director general's report.

 

“The order passed by the commission agreeing to the commitments offered shall not be construed as a finding of contravention by the commission against the commitment applicant,” the regulations said.

 

The Competition (Amendment) Act, 2023 introduced Sections 48A and 48B of the Act to create a settlement and commitment mechanism.

 

According to the CCI, the intent behind creating these procedures is to reduce litigation and ensure quicker market correction.

 

The regulations empower the CCI and the director general to rely upon the information and documents submitted by the commitment applicant, if the commitment order is revoked or withdrawn with the commission.

 

The CCI also has the power to accept or reject these proposals within a specified timeline after seeking clarifications from the applicants.

 

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