Business Entities Yet to Utilize New Settlement and Commitment Regulations
Despite the recent notification of the settlement and commitment regulations under the Competition (Amendment) Act, 2023, no business entity has yet approached the Competition Commission of India (CCI) to utilize these new rules.
Sources close to the matter confirmed that neither the Director General nor the CCI itself has received any applications under these provisions. This is likely due to the recent implementation of these regulations, which were only notified in March 2023.
However, experts anticipate that these regulations will become widely used by companies facing investigations by the CCI for potential abuse of dominant position or anti-competitive practices. Both industry and legal professionals have welcomed these provisions, which aim to reduce litigation, particularly for tech firms under the CCI's scrutiny.
The new regulations offer a time-bound process for entities under investigation to settle and commit with the regulator without the need for a formal report. This allows parties to voluntarily address any anti-competitive behavior and comply with the Competition Act. However, entities investigated for their role in cartels are not eligible for this option.
Companies can submit a settlement application within 45 days of receiving the Director General's report, while a commitment application can be filed within 45 days of receiving the CCI's order. Failure to comply with these regulations can result in penalties of up to 10% of the average global turnover of the preceding three fiscals.