India’s proposed new competition regulations have an incentive issue

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.