Companies coming under the scrutiny of the Competition Commission of India (CCI) for anti-competitive practices or abuse of dominant position would now have 30 days to respond to the notices sent out by the regulator. Currently, the Commission gives only 15 days for a firm to respond to its notices and this is perceived as too short. Since the relaxation would be in the form of the internal practices the Commission wishes to follow, it won?t require any change in law.
A CCI official said the rethink on the time limit is also because the Commission wants to position itself as an organisation which is seen as reasonable and provides enough time to the firms under scrutiny to present their version.
In fact, recent experience of the Commission in some important cases it has taken up has prompted the move. In January, public sector steel major Steel Authority of India Ltd (SAIL) had approached the Competition Appellate Tribunal (CAT) after the CCI refused to give it an extension of the deadline to submit its response. SAIL had sought an additional two weeks time to submit its reply in a case where it was alleged that it had entered into an ?exclusive supply arrangement? with the Indian Railways for the supply of rail steel, thus closing doors on other manufacturers.
?The Commission is not trying to be a policeman for corporate India but to engage with them. It?s a symbiotic relationship that we both share which we respect,? an official said. However, a final decision on this is yet to be taken, he added.
The idea behind the move is two-pronged: not only to win support of the concerned parties in carrying out investigations but also to give no opportunity to companies for excuses. ?If companies are finally given one month time to respond then it should be ample time to comeback to us with the right information that we desire,? the official said.
Since the Commission was formally set up in 2009, it has met strong opposition from India Inc on several counts. The Commission is also planning to reduce the time period taken for approving most mergers and acquisitions (M&A) to just 30 days. It is drawing up a list of M&As for such fast-track clearance. CCI has a set of criteria to identify M&As that potentially can hit competition. Even though these M&As would need prior nod of the Commission, in most cases, the clearance would be automatic and quick.
?We are not in the habit of pulling up companies unnecessarily?it is only after long internal discussions and meetings that we decide to initiate investigations against the concerned parties,? the official said.