CCI notifies three distinct Regulations on Determination of Turnover, Settlement, Commitment and Penalty Guidelines

The Competition Commission of India (CCI) has notified three regulations viz. The CCI (Settlement) Regulations, 2024; The CCI (Commitment) Regulations, 2024; The CCI (Determination Of Turnover Or Income) Regulations, 2024 and The CCI (Determination Of Monetary Penalty) Guidelines, 2024 on 06.03.2024.

These regulations and guidelines were issued in accordance with the Competition (Amendment) Act, 2023, and the following notification of Sections 20, 35, and 40 of the Competition (Amendment) Act, 2023, with effect from March 6, 2024.

The Settlement Regulations and Commitment Regulations are intended to allow an enterprise against which an inquiry under Section 26(1) of the Act has been initiated for an alleged violation of Section 3(4) or Section 4 of the Act, as the case may be, to apply for settlement or commitment before the CCI. The aim of developing a Settlement and Commitment method is to reduce litigation and ensure a faster market correction. The application for Settlement or Commitment is filed at a different stage of the inquiry process under the two methods.

The Turnover or Income Regulations govern the determination of turnover or income for enterprises under section 27 of the Act, as well as the determination of income for individuals under sections 27 and 48. Furthermore, CCI has issued Monetary Penalty Guidelines governing the determination of monetary penalties to be imposed on enterprises and/or individuals for any violation of the Act’s provisions. The long-awaited monetary penalty guidelines have been developed in accordance with best practices to ensure that the penalty imposed is proportionate to the anti-competitive harm caused to the market by the violating entities/persons.

The CCI has followed a detailed public consultation process and based on the comments/suggestions received from the stakeholders, appropriate changes have been incorporated in the regulations.

These regulations, their respective general statements and the penalty guidelines can also be accessed at CCI website.