CCI brings draft regulations for Settlement and Commitment scheme
New Delhi, Aug 23, 2023
The antitrust watchdog has invited stakeholders to submit written comments on these draft regulations within 21 days ending September 13, 2023
In a move that could benefit the big tech companies undergoing investigation by the Competition Commission of India (CCI) for abuse of dominant position, the anti-trust regulator 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.
The inquiry against the company would be kept in abeyance in both cases till CCI takes a final decision.
CCI, however, has said that it can use the information provided by the applicants in both these schemes against them or such other parties to the inquiry who are not part of the proceedings.
While there is no need for admission of guilt to opt for the settlement or commitment option, companies do have to provide in their applications “a full and true disclosure of facts in respect of the alleged contraventions of the Act” and in case of settlement, also about the findings of the Director General.
CCI also has the power to accept or reject these proposals within a specified timeline after seeking clarifications from the applicants.
The Competition (Amendment) Act, 2023 introduced Section 48A and 48B of the Act to create a settlement and commitment mechanism.
“The intent of creating these procedures is driven by the need to reduce litigation and to ensure quicker market correction,” CCI said.
The antitrust watchdog has invited stakeholders to submit written comments on these draft regulations within 21 days ending September 13, 2023.
The regulations have also provided timelines for filing both the applications, and in case of settlement payment of the settlement amount.
The draft regulations also said, “While considering the proposal for settlement, the Commission shall invite objections and suggestions.”
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.
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.
The Commission could also consider the level of cooperation extended, nature of disclosure made by the Settlement Applicant and the Settlement Proposal, and may apply a settlement discount and reduce the amount by up to 15 per cent, the draft regulations said.
[The Business Standard]
