The Competition Commission of India has issued draft regulations for the Settlement and Commitment scheme under the new Competition Act. While the option of offering a commitment scheme is open to a company only till 45 days after a prima facie order for investigation is passed by the CCI, a company can opt for a settlement after the investigation report has been filed by Director General, CCI. The latter would require the company to pay up a settlement amount, which could extend up to the maximum amount of penalty under the Act. For commitment however, no amount has to be paid except the application fee. This CCI move could benefit the big tech companies undergoing investigation by the Competition Commission of India (CCI) for abuse of dominant position. The inquiry against the company would be kept in abeyance in both cases till CCI takes a final decision. CCI can also appoint an agency including an accounting firm, management consultancy, law firm, any other professional organisation, or independent practitioners of repute to monitor the implementation of the proposed scheme.
As per CCI, the intent of creating these procedures is driven by the need to reduce litigation and to ensure quicker market correction. Settlement and Commitment option is only available to those who are facing inquiry for abuse of dominant position. Cartels have been kept out of it.
Click here to access the draft regulations:
Settlement Regulation- https://cci.gov.in/images/stakeholderstopicsconsultations/en/draft-settlement-regulations1692787026.pdf
Commitment Regulation- https://cci.gov.in/images/stakeholderstopicsconsultations/en/draft-commitment-regulations1692788680.pdf
