CCI gives effect to higher penalty, settlement scheme from Wednesday

  • Separately, CCI also notified guidelines for determination of turnover or income for computing penalty

Gireesh Chandra Prasad
Published6 Mar 2024, 10:26 PM IST
The sought after commitment and settlement schemes were added to the Competition Act last year itself by way of legislative amendments.
The sought after commitment and settlement schemes were added to the Competition Act last year itself by way of legislative amendments.

The Competition Commission of India (CCI) on Wednesday gave effect to two schemes under which it will offer negotiated settlements in antitrust cases and accept commitments from businesses for change in their behaviour in order to avoid an investigation.

The sought after commitment and settlement schemes were added to the Competition Act last year itself by way of legislative amendments. The detailed guidelines brought out by the CCI brings them into operation from Wednesday.

Separately, CCI also notified guidelines for determination of turnover or income for computing penalty and a set of guidelines for deciding on the quantum of penalty in cases of anti-competitive practices.

The amendments to the Competition Act last year broadened the scope of penalty by clarifying that it is to be levied on the global turnover of the erring entity.

Anti-competitive practices attract penalty up to 10% of the turnover and, in the case of cartels, up to three times its profit for each year of the continuance of such behaviour, or 10% of its turnover or income for each year of the continuance of such agreement, whichever is higher.

The commission said in a statement that it received suggestions during the public feedback period that turnover for the purpose of penalty should be based on standalone financial statements. “CCI observes that consolidated financial statements are to be considered only in cases where the enterprise is required to prepare consolidated financial statements under any applicable law (whether domestic or otherwise),” CCI said.

Stakeholders also proposed to CCI to consider ‘relevant income’ instead of ‘gross total income’ of individuals while determining the penalty to be imposed on them, the regulator said. “The CCI has suitably modified the Regulation 4 to exclude ‘income from house property’ and ‘income from capital gains’ for the purpose of determination of income of an individual,” CCI said.

Businesses and other parties can apply for settlements before CCI comes out with its final order after an investigation, while commitments to address regulatory concerns around anti-competitive behaviour have to be made prior to receipt of the investigation order.

Catch all the Business News , Economy news , Breaking News Events andLatest News Updates on Live Mint. Download TheMint News App to get Daily Market Updates.

MoreLess
First Published:6 Mar 2024, 10:26 PM IST
Business NewsEconomyCCI gives effect to higher penalty, settlement scheme from Wednesday

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel share price

    147.55
    03:59 PM | 8 NOV 2024
    -3.35 (-2.22%)

    Tata Motors share price

    805.70
    03:58 PM | 8 NOV 2024
    -14.1 (-1.72%)

    Indian Hotels Company share price

    733.05
    03:51 PM | 8 NOV 2024
    49.45 (7.23%)

    Ashok Leyland share price

    222.00
    03:59 PM | 8 NOV 2024
    6.2 (2.87%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Page Industries share price

    47,987.80
    03:53 PM | 8 NOV 2024
    2882.3 (6.39%)

    National Aluminium Company share price

    238.70
    03:57 PM | 8 NOV 2024
    0.15 (0.06%)

    Federal Bank share price

    206.05
    03:29 PM | 8 NOV 2024
    0.05 (0.02%)

    Apollo Hospitals Enterprise share price

    7,409.05
    03:29 PM | 8 NOV 2024
    -15.55 (-0.21%)
    More from 52 Week High

    Aarti Industries share price

    474.75
    03:59 PM | 8 NOV 2024
    -40.3 (-7.82%)

    Signatureglobal India share price

    1,274.45
    03:29 PM | 8 NOV 2024
    -107.95 (-7.81%)

    Great Eastern Shipping Company share price

    1,200.50
    03:29 PM | 8 NOV 2024
    -90.45 (-7.01%)

    GMM Pfaudler share price

    1,282.90
    03:29 PM | 8 NOV 2024
    -92 (-6.69%)
    More from Top Losers

    Indian Hotels Company share price

    733.05
    03:51 PM | 8 NOV 2024
    49.45 (7.23%)

    Vijaya Diagnostic Centre share price

    1,098.90
    03:29 PM | 8 NOV 2024
    71.45 (6.95%)

    Motilal Oswal Financial Services share price

    996.05
    03:59 PM | 8 NOV 2024
    61.85 (6.62%)

    One 97 Communications share price

    848.15
    03:58 PM | 8 NOV 2024
    52.35 (6.58%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      79,485.00910.00
      Chennai
      79,491.00910.00
      Delhi
      79,643.00910.00
      Kolkata
      79,495.00910.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.92/L0.00
      Chennai
      100.80/L0.00
      Kolkata
      104.95/L0.00
      New Delhi
      94.77/L0.00

      Popular in Economy

        HomeMarketsPremiumInstant LoanMint Shorts