India’s competition regulator has recently released draft of CCI (Determination of Turnover or Income) Regulations, 2023. The government had amended the law earlier this year. One of the key amendments was to step up the force of deterrence by introducing a penalty that would be applicable on the global turnover or income of an entity accused of stifling competition.

As per this, the penalty could go up to 10% of average sales or income for the three preceding years on each of the entities that was party to an anti-competitive agreement or had abused its dominant position. This penalty would be computed on the global turnover or income, to be computed under CCI's regulations.

As per the CCI draft, the turnover or income shall exclude indirect taxes, trade discounts, and intra-group sales, if any. In case an enterprise is required to prepare a consolidated financial statement under Section 129 of the Companies Act, 2013 or under any law, turnover or income shall be derived based on such audited consolidated financial statements. In case audited financial statements are not available, turnover shall be the amount certified by the statutory auditor of the enterprise and supported by an affidavit by any of the persons authorised to sign financial statements of the enterprise.

The CCI has invited stakeholders to submit written comments on the draft Regulations, 2023 by 12.01.2024.

Click here to access the draft of CCI-