Enhancing Regulatory Effectiveness: Amendments To CCI (General) Regulations, 2009

In a move aimed at fortifying the regulatory framework governing competition in India, followed by the roll out of Competition (Amendment) Act, 2023 (Act), the Competition Commission of India has now proposed amendments to the CCI (General) Regulations, 2009, to align the regulations with the updated framework. These amendments aim to modernise the regulatory framework to address contemporary challenges, such as digital technology advancements and global market integration. Stakeholder feedback is being sought on these proposed changes.

Key amendments include; (i) introduction of a limitation period for reporting anti-competitive conduct; (ii) appointment of independent monitoring agencies to oversee final order implementation; (iii) requirement of financial statement filings by parties in proceedings; (iv) removal of the 90-day deadline for final order issuance after interim orders; (v) updating the procedure of inquiry under section 26 of the Act with specific timelines; (vi) updating the penalty imposition procedures; and (vii) revision of the filing fees for interlocutory and miscellaneous applications.

Recently, the CCI has made significant strides in modernising its regulatory framework by firstly bringing amendments to various legislations, including the Act itself, and now by notifying new legislations such as the CCI (Settlement) Regulations, 2024, CCI (Commitment) Regulations, 2024, CCI (Determination of Turnover or Income) Regulations, 2024, CCI (Determination of Monetary Penalty) Guidelines, 2024, etc. While such meaningful strides enable the regulator to adjudicate anti-competitive practices, such adjudication is only one part of the equation, the other part being effective implementation of the orders passed by the regulator.  

To bolster the effectiveness of competition regulations in the country, as part of the draft amendment, CCI has proposed crucial provisions pertaining to appointment of independent expert agencies to monitor implementation of its final orders under regulation 52A. Such expert agencies will provide valuable insights to the commission on intricate legal, economic and technical nuances in complex cases, assess the impact of remedies ordered by the commission as also strengthening the commission’s oversight and enforcement mechanisms.  

Challenges in implementing CCI orders are not uncommon, as highlighted by the cement cartel case of 2014, automobile parts cartel case of 2014 as also the Google abuse of dominance case of 2018. In these instances, despite the imposition of fines and directives to cease anti-competitive activities, concerns arose regarding on-the-ground compliance of the directives and its overall impact on the economy. In such situations, experts appointed by the CCI could have played a crucial role in monitoring compliance and addressing these challenges effectively.  

Upon receiving monitoring reports from such experts, the CCI can take several measures to address any identified issues, which may include; (i) issuing remedial directions; (ii) imposing incremental penalties and fines; (iii) modifying or revoking its orders; (iv) implementing additional remedial measures; (v) collaborating with other authorities in cases involving cross border implications or overlapping regulatory agencies (vi) engage with stakeholders and public to encourage voluntary adherence to law and deter future violations, etc.  

In an era of increasingly complex markets and evolving competition dynamics, the appointment of experts by CCI to oversee the implementation of its orders has become imperative. By harnessing the specialized expertise, CCI can strengthen its regulatory powers, foster greater compliance and ultimately, safeguard the interest of the consumers and promote a level playing field for business. As the regulatory landscape continues to evolve, embracing expert oversight remains a cornerstone of effective competition enforcement in India.

Authored By: Natasha Treasurywala, Partner Desai & Diwanji and Rishabha Sharma, Senior Associate Desai & Diwanji