Retrospective fine? Experts seek clarity on CCI rule on global turnover

MCA notification dated March 5 empowers the Commission to impose penalty on global turnover of a company and not just the turnover derived from the product or service under investigation

The Competition Amendment Act’s latest provision for calculating penalties based on global turnover is likely to be applicable on the ongoing Competition Commission of India (CCI) investigations, including in various Big Tech cases awaiting final orders. However, experts say there is a need for clarification on whether this law applies to new complaints or the ongoing investigations.

“The Ministry of Corporate Affairs (MCA) notification (regarding global turnover for penalty calculation) is an explanation to Section 27 of the principal Act. It deals with the type of orders that the CCI can pass. It would mean trouble for companies as in cases