The Competition Commission of India (CCI) is overhauling its general regulations. On Thursday, the competition regulator began the consultation process for bringing changes to the Competition Commission of India (General) Regulations, 2009. In the month-long process, which ends on July 8, the CCI will be seeking comments on a bunch of new additions, deletions and modifications to the existing rules.
The key changes include appointing of a monitoring agency to oversee the implementation of its final orders, asking the parties involved to file their financial statements, removing the deadline of 90 days to pass the final order after its interim orders, among others.For instance, the draft amendments said that the monitoring agency will be independent of the parties involved, and the agency will have to that it does not have any conflict of interest with the said parties.
“Such agencies referred to in this regulation may include an accounting firm, management consultancy, any other professional organisation or chartered accountants or company secretaries or cost accountants,” the draft said.Similarly, the amendments said that the commission, while forwarding the investigation report of the Director General (Investigation) to the parties concerned for filing objections or suggestions will also direct the parties concerned to file their financial information including financial statements. This will be in accordance with the Competition Commission of India (Determination of Turnover or Income) Regulations, 2024 and the Competition Commission of India (Determination of Monetary Penalty) Guidelines, 2024.Experts said that the amendments made under competition act are incorporated for the better functioning of the regulator. “The CCI basically performs its duties based on principles of natural justice which cannot be ignored and are always open for judicial review before the higher forums.
The amendment incorporated in the form of section 52A of the Act provides powers to the commission to appoint agencies for implementation and monitoring of its orders so that dumping or cartelisation etc. can be curbed down,” said Mohit Garg, managing partner at Lex Panacea.Though some experts remain sceptical of the draft amendments. K.K. Sharma, partner at Singhania & Co said that the limiting the filing of information of any anti-competitive conduct to within 3 years of the date on which the cause of action had arisen is likely to result in substantial confusion as in many such cases the cause of action are not in the form of clear bright lines.
“It would have been better if it was left to the discretion of the commission to take note of the matter while taking a prima facie opinion,” he said. As per the amendments, if the information or reference is filed after three years from the date on which the cause of action had arisen, it should be accompanied with an interlocutory application seeking condonation of delay together with a fee.CCI’s said that in April 2023, the Competition (Amendment) Act 2023 was passed by the government which has created a need to overhaul the general regulations.