India’s proposed new competition regulations have an incentive issue

Bhoomika Agarwal

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Aman Mishra

1 reads

Bhoomika Agarwal

1 reads

Aman Mishra

1 reads

India’s recent Competition (Amendment) Act 2023 does a lot to bring India’s competitive framework in line with best international practices. However, the recent Settlement & Commitment draft regulations issued by the competition regulator are still a work in progress.

September 07, 2023

6 MINS READ

Key Takeaways

Even as India's new Competition (Amendment) Act, 2023 is still fresh in the memory, the Competition Commission of India released draft regulations for settlements and commissions (S&C).
The current competition enforcement framework is a protracted process, often taking close to three years
The proposed new regulations provide a structured framework for parties under investigation to arrive at a quicker resolution.
However, a few issues—particularly related to admission of guilt and confidentiality—could impede the effectiveness and appeal of the new measures

Earlier this year, India's competition framework underwent a much-needed revamp with the introduction of the Competition (Amendment) Act, 2023.

The act brings the country’s competition framework in line with international best practices and, crucially, allows parties under investigation to voluntarily propose steps to address the concerns raised by the Competition Commission of India (CCI). Should the CCI deem these proposals acceptable, it can close its investigation and therefore avoid the lengthy legal proceedings that competition cases generally entail.

Even as the ink on the amendment dries, the CCI recently issued draft settlement and commitment (S&C) regulations, delineating the procedural aspects of these mechanisms. This marks a significant stride towards inclusive policy-making.