5-Dec-2022: 5th European Union-India Competition Week 2022 Inaugurated

The European Union-India Competition Week, 5th edition, was inaugurated today at the Competition Commission of India (CCI) HQ by Dr. Sangeeta Verma, acting Chairperson, CCI, and Mr. Seppo Nurmi, Deputy Head of Delegation of the EU to India & Bhutan. The Competition Week is scheduled to be held during 5-7 December 2022.

In her opening remarks, Chairperson, CCI appreciated the relevance of the Competition Week for capacity building of CCI officers. Dr. Verma also highlighted the ongoing cooperation between CCI and Directorate General for Competition of the European Commission under the Memorandum of Understanding (MoU) signed by the two authorities in November 2013. Further, she pointed out that this technical cooperation program has provided a platform for dialogue and exchange of good practices between competition authority officials and experts from the EU and India. She remarked that the topics on the agenda are not only of great contemporary relevance and significance but also quite futuristic.

In the backdrop of the rapidly changing and evolving digital landscape that is posing new challenges for competition law enforcers and questioning the traditional parameters of competition regulation, she highlighted the need for competition agencies to develop innovative perspectives on how to apply the existing instruments suitably and devise new tools, where necessary.

The practical insights shared by experts from the EU in designing and implementing their digital regulations will lead to very engaging discussions, she added. 

The Deputy Head of the EU delegation, Mr. Nurmi, highlighted the India-EU relations that date back to the early-1960s. In reference to the agenda items to be covered in the ongoing India-EU Competition Week, he stated that topics such as experiences in applying antitrust laws to the digital economy/markets, introduction of the EU’s Digital Markets Act, investigating hub-and-spoke agreements & other atypical cartels and competition law & sustainable co-operation; are timely for sharing the views of EU experts. He further stated that the 5th India-EU Competition Week provides a platform to share views from two key economies on antitrust action in digital and technology markets as we attempt to find answers to these challenges and provides an opportunity to discuss how regulation can supplement competition enforcement, as the EU has set the Digital Markets Act in motion.

A short meeting on the sidelines of the competition week was also held between the Deputy Head of the EU delegation and Chairperson, CCI along-with the Secretary and other officials.

22-Dec-2021: Cabinet approves Memorandum of Understanding between Competition Commission of India and Competition Commission of Mauritius

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the signing of Memorandum of Understanding (MoU) between Competition Commission of India (CCI) and Competition Commission of Mauritius (CCM) for promotion and strengthening of co-operation in competition law and policy.

Implementation Strategy and Targets: The MoU aims to promote and strengthen cooperation in matters of competition law and policy through exchange of information, sharing of best practices and capacity building initiatives. It is intended to promote mutual co-operation in the areas of technical co-operation, experience sharing and enforcement co-operation. The resultant outcomes would benefit consumers at large and promote equity and inclusiveness. 

Impact:

The MoU between CCI and CCM is expected to:

1. Address anticompetitive restraints that affect international trade;
2. Improve enforcement of the Competition Act, 2002 by CCI;
3. Promote understanding of competition policy;
4. Capacity building;
5. Bring diplomatic benefits;

Ministry of Corporate Affairs, Competition Commission of India on the Indian side and Competition Commission of Mauritius on the other side would be major beneficiaries in this Memorandum of Understanding.

Background: Section 18 of the Competition Act, 2002 permits CCI to enter into any memorandum or arrangement with any agency of any foreign country for the purpose of discharging its duties or performing its functions under the Act.

8-Jul-2021: Cabinet approves Memorandum on Cooperation (MoC) between Competition Commission of India (CCI) and Japan Fair Trade Commission (JFTC)

The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the Memorandum on Cooperation (MoC) between Competition Commission of India (CCI) and Japan Fair Trade Commission (JFTC) to promote and strengthen cooperation in the matter of Competition Law and Policy.

Impact: The approved MoC, through exchange of information, will enable CCI to emulate and learn from the experiences and lessons of its counterpart competition agency in Japan which would enhance efficiency. The same will help improve enforcement of the Competition Act, 2002 by CCI. The resultant outcomes will benefit consumers at large and will promote equity and inclusiveness.

Details: It will envisage to promote and strengthen cooperation in the matter of Competition Law and policy through exchange of information as well as through various capacity building initiatives in the areas of technical cooperation, experience sharing and enforcement cooperation

Background: Section 18 of the Competition Act, 2002 permits CCI to enter into any memorandum or arrangement with any agency of any foreign country for the purpose of discharging its duties or performing its functions under the Act.

20-Apr-2021: MoU between Competition Commission of India (CCI) and Administrative Council for Economic Defense of Brazil (CADE)

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi today has approved the Memorandum of Understanding (MOU) between Competition Commission of India (CCI) and Administrative Council for Economic Defense of Brazil (CADE).

Section 18 of the Competition Act, 2002 permits CCI to enter into any Memorandum or arrangement with any agency of any foreign country for the purpose of discharging its duties or performing its functions under the Act.

Accordingly, CCI has entered into the following six MoUs:

1. Federal Trade Commission (FTC) and Department of Justice (DOJ), USA
2. Director General Competition, European Union
3. Federal Antimonopoly Service, Russia
4. Australian Competition and Consumer Commission and
5. Competition Bureau, Canada and
6. BRICS Competition Authorities.

The present proposal relates to signing of a similar MOU between CCI and CADE.

24-Feb-2020: NTPC gets CCI approval to acquire 74.50% of issued and paid-up share capital of THDC India Ltd.

The Competition Commission of India (CCI) approves the acquisition of 74.50% of the issued and paid-up share capital of THDC India Limited (“THDC”/ “Target”) by NTPC Limited (“NTPC”/ “Acquirer”) from Government of India (“GoI”), under Section 31(1) of the Competition Act, 2002

The Proposed Combination relates to the acquisition of 74.50% of the issued and paid-up share capital of the Target by the Acquirer from GoI.

NTPC is a Maharatna Company having presence in the power generation business. The principal business activity of the company is electric power generation through coal based thermal power plants. NTPC is also engaged in the business of generation of electricity from hydro and renewable energy sources.

THDC is a government company with 74.50% of its total shares held by the Government of India and 25.50% of its shares held by the Government of Uttar Pradesh as on 31 March 2019. The Target is a Central Public Sector Unit and under the administrative control of the Ministry of Power, GoI.

The CCI approved the Proposed Combination under Section 31(1) of the Act.

Detailed order of the CCI will follow.

6-Jun-2019: CCI imposes over Rs 74 cr. penalty on pharma companies, trade bodies

The Competition Commission of India (CCI) has imposed penalties of over Rs 74 crore on two pharmaceutical companies-- Himalaya Drug Company and Intas Pharmaceuticals -- as well as two Madhya Pradesh-based drug associations for indulging in anti-competitive trade practices.

The CCI found activities of Madhya Pradesh Chemists and Druggist Association (MPCDA) and Indore Chemists Association (ICA) to be in contravention of the provisions of the Competition Act, 2002.

As per the CCI order on June 3, a penalty of Rs 55.59 crore was levied on Intas Pharmaceuticals while Himalaya Drug was fined Rs 18.59 crore. Penalties were also imposed on certain officials of these firms.

Besides, MPCDA was fined Rs 4.18 lakh and ICA Rs 39,812.

In addition, the CCI gave 'cease and desist' directions issued under Section 27 of the Act.

According to a statement, the CCI directed MPCDA to organise at least five competition awareness and compliance programmes over a period of six months in Madhya Pradesh for its members. It also directed ICA to organise one competition awareness programme in Indore district.

The action was initiated after information was filed with the Commission by Madhya Pradesh Chemists and Distributors Federation alleging contravention of the provisions of Section 3 of the Act by MPCDA and others including certain pharmaceutical companies.

21-May-2019: Competition Commission of India (CCI) celebrates its 10th Annual Day on 20th May 2019

The Competition Commission of India (CCI) celebrated its 10th Annual Day on 20th May, 2019 which marks the notification of the substantive enforcement provisions of the Competition Act, 2002.

On this occasion, Shri N. K. Singh, Chairman, Fifteenth Finance Commission, Govt. of India, delivered the Annual Day Lecture on “Should Competitive Federalism Complement Cooperative Federalism?”

Shri N.K. Singh in his Introductory Remarks dwelt upon the scope, jurisdiction, mandate and duties of the Finance Commission in view of the Article 280 of the Constitution of India. He pointed that it is challenging to provide ideal distribution of tax revenues between Union and the States considering the peculiar issues involved with the States in terms of economic structure, demographic management and administrative mechanism. However, the Finance Commission will endeavour to reward efficiency while recognising equity.

While appreciating the role of Competition Commission of India as a Market Regulator ensuring level playing field, he stated that in increased globalized and inter-dependent world, the role of the Competition Commission of India is required to be dynamic. He further underscored the fact that the globalized and inter-dependent world will draw more private investments and the State Governments can take advantage of that in their all-round progress. Public-Private Partnership (PPP) can also bring positive changes in the developments of the Sates in India and the Competition Commission of India can play a vital role in ensuring level playing field.

Shri Singh further underlined the necessity of having a Market Regulator as competition in markets ensures optimum utilization of resources and bring forth innovation at forefront. In view of rapid change in technology day by day, disruption in services and products have become a new norm in the markets and dynamic role of the Competition Commission of India is required for its regulation. He also highlighted the fact that the economic reforms in India so far, have largely focused on the products market and it is now imperative to take it to the factor markets which includes reforms in labour and land laws and ensuring access to capitals.

Earlier, Shri Ashok Kumar Gupta, Chairman, Competition Commission of India, in his Welcome Address, stated that CCI is a young but perceptive regulator and has strived to nurture a culture of competition in markets through credible antitrust enforcement and regular engagement with the stakeholders. The Commission frequently solicits and takes cognizance of the stakeholders’ insights. Since 2009, the CCI has reviewed 1010 antitrust cases, 660 merger filings and has held more than 700 advocacy events.

4-Nov-2018: CCI to hold national conference on public procurement & competition law

A ‘National Conference on Public Procurement & Competition Law’ is being organised by the Competition Commission of India (CCI) in Delhi on 5th November, 2018 with a view to scale up Competition Advocacy and reach out to important stakeholders in public procurement ecosystem. Union Minister for Finance and Corporate Affairs Shri Arun Jaitley will be the keynote speaker and the chief guest for the National Conference.

The National Conference is being organised in association with Indian Institute of Corporate Affairs (IICA), a think tank under the aegis of Ministry of Corporate Affairs. Ahead of the National Conference, CCI Chairperson Shri Sudhir Mital said that the National Conference is a unique initiative of the Commission which provides a platform to various stakeholders to engage in an active discussion with the policymakers and the industry on various aspects of competition law and public procurement. He further added that infusing competition and checking anti-competitive conduct in public procurement is a priority for the CCI.

The National Conference will be attended by senior policy makers from Central Government, various State Governments, participants from the public sector enterprises, industry, legal and finance professionals, corporate lawyers, academics, and other relevant stakeholders. The day-long event is to focus on public procurement, bid rigging, cartels and leniency. This event is the 2nd in the series of many Conferences and Roadshows which are being organised by the competition regulator at different locations. The first road show was organised in Mumbai on 15th October, 2018 with a focus on cartels, leniency and merger control.

The National Conference will have two open house sessions. The first session will be on Infusing Competition in Public Procurement and will be chaired by Shri Karan Avtar Singh, Chief Secretary, Govt. of Punjab, and the second session will be on bid-rigging, cartels and leniency and will be chaired by Shri Augustine Peter, Member, CCI. The open house sessions will be followed up by a wrap up session by Smt. Smita Jhingran, Secretary, CCI.

10-Oct-2018: Competition Commission of India amends the Combination Regulations vide notification dated 9th October 2018

The Competition Commission of India (CCI), in continuation of its efforts towards simplifying and providing greater clarity on the application of the combination provisions of the Act and the Combination Regulations, has further amended the Combination Regulations on 09th October 2018. This amendment inter alia provide certainty & transparency and expedites faster disposal of combination cases before CCI.

The provisions of the Competition Act, 2002 (“Act”) relating to the regulation of combinations as well as the Combination Regulations have been in force with effect from 1st June 2011.

A key change brought about by the present amendments is that the parties to combinations can now submit remedies voluntarily in response to the notice issued under Section 29(1) of the Act. If such remedies are considered sufficient to address the perceived competition harm, the combination can be approved. This amendment is expected to expedite disposal of such combination cases.

In another significant amendment, where the notice is found to exhibit significant information gaps, parties to combinations are allowed to withdraw the notice and refile the same. With this amendment, the parties could address the deficiencies without facing an invalidation by CCI. Further, fee already paid in respect of such notice shall be adjusted against the fee payable in respect of new notice, if the refiling is done within a period of 3 months.

Apart from these, certain consequential and other clarificatory changes have also been made in the Combination Regulations.

30-Sep-2018: Government constitutes Competition Law Review Committee to review the Competition Act

In pursuance of its objective of ensuring that Legislation is in sync with the needs of strong economic fundamentals, the Government has constituted a Competition Law Review Committee to review the Competition Act.

The Competition Act was passed in the year 2002 and the Competition Commission of India was set up in pursuance of the same. The Commission started functioning in right earnest from 2009 and has contributed immensely towards the development of competition and fair play practices in the Indian market. During the past nine years the size of the Indian Economy has grown immensely and India is today amongst the top five  Economies in the World and poised to forge ahead further. In this context, it is essential that Competition Law is strengthened, and re-calibrated to promote best practices which result in the citizens of this country achieving their aspirations and value for money.

The Review Committee comprises of the following:

Secretary, Ministry of Corporate Affairs                                  - Chairperson

Chairperson, Competition Commission of India (CCI)                      - Member

Chairperson, Insolvency and Bankruptcy Board of India      - Member

Shri Haigreve Khaitan, M/S Khaitan & Co.                                       - Member 

Shri Harsha Vardhana Singh, IKDHVAJ Advisers LLP                   - Member

Ms. Pallavi Shardul Shroff, Advocate,                                               - Member

M/S Shardul Amarchand Mangaldas & Co.

Dr. S. Chakravarthy, IAS (Retd.), Hony. Visiting Prof. ASCII        - Member

Shri Aditya Bhattacharjea, Professor of Economics,             - Member

Delhi School of Economics

Joint Secretary (Competition), MCA                                Member Secretary

The Terms of References of the Committee are as follows:-

• To review the Competition Act/ Rules/ Regulations, in view of changing business environment and bring necessary changes, if required;
• To look into international best practices in the competition fields, especially anti-trust laws, merger guidelines and handling cross border competition issues;
• To study other regulatory regimes/ institutional mechanisms/ government policies which overlap with the Competition Act;
• Any other matters related to competition issue and considered necessary by the Committee.

The Committee shall complete its work and submit its report within three months of the date of its first meeting.

4-Apr-2018: Cabinet approves rightsizing the Competition Commission of India

The Union Cabinet has given its approval for rightsizing the Competition Commission of India (CCI) from One Chairperson and Six Members (totalling seven) to One Chairperson and Three Members (totalling four) by not filling the existing vacancies of two Members and one more additional vacancy, which is expected in September, 2018 when one of the present incumbents will complete his term.

Benefits: The proposal is expected to result in reduction of three Posts of Members of the Commission in pursuance of the Governments objective of "Minimum Government - Maximum Governance".

As part of the Governments objective of easing the mergers and amalgamation process in the country, the Ministry had revised de minimis levels in 2017, which have been made applicable for all forms of combinations and the methodology for computing assets and turnover of the target involved in such combinations, has been spelt out. This has led to reduction in the notices that enterprises are mandated to submit to the Commission, while entering into combinations, thereby reducing the load on the Commission.

The faster turnaround in hearings is expected to result in speedier approvals, thereby stimulating the business processes of corporates and resulting in greater employment opportunities in the country.

The proposal is expected to result in reduction of three Posts of Members of the Commission in pursuance of the Governments objective of "Minimum Government - Maximum Governance".

Background: Section 8(1) of the Competition Act, 2002 (the Act) provides that the Commission shall consist of a Chairperson and not less than two and not more than six Members. Presently, the Chairperson and four Members are in position.                

An initial limit of one Chairperson and not more than ten Members was provided in the Act, keeping in view the requirement of creating a Principal Bench, other Additional Bench or Mergers Bench, comprising at least two Members each, in places as notified by the Central Government. In the Competition (Amendment) Act, 2007 (39 of 2007), Section 22 of the Act was amended removing the provision for creation of Benches. In the same Amendment Act, while the Competition Appellate Tribunal comprising one Chairperson and two Members was created, the size of the Commission itself was not commensurately reduced and was kept at one Chairperson and not less than two but not more than six Members.

The Commission has been functioning as a collegium right from its inception. In several major jurisdictions such as in Japan, USA and U.K. Competition Authorities are of a similar size.

8-Feb-2018: CCI slaps Rs. 136 cr. fine on Google

The Competition Commission of India has imposed a fine of Rs. 136 crore on search engine major Google for unfair business practices in the Indian market for online search.

It was alleged that Google was indulging in abuse of dominant position in the market for online search through practices leading to search bias and search manipulation, among others.

24-Mar-2017: CCI imposes ₹591 crore penalty on Coal India

Fair trade regulator Competition Commission of India (CCI) has imposed a penalty of₹591.01 crore upon Coal India Limited (CIL) on finding that CIL and its subsidiaries violated the Competition Act by imposing unfair and discriminatory conditions in Fuel Supply Agreements (FSAs) with power producers for supply of non-coking coal.

Apart from ordering CIL and its subsidiaries to “cease and desist” from anti-competitive practices, the CCI also directed modification of the FSAs. CIL had also been directed to ensure uniformity between old and new power producers as well as between private and PSU power producers.

19-Jan-2017: CCI imposes penalty on bidders for cartelisation in tenders of Indian Railways

The Competition Commission of India (CCI) has imposed penalties on three firms for bid rigging of tenders floated by Indian Railways for procurement of Brushless DC fans in the year 2013.

A final order has been passed by CCI in a case taken up suo moto under Section 19 of the Competition Act, 2002 (‘the Act’) based on the information received from Central Bureau of Investigation, New Delhi. 

CCI has held that the firms had shared the market by way of allocation of tenders of Indian Railways for Brushless DC fans amongst themselves under an agreement/ arrangement and indulged in bid rigging/ collusive bidding in contravention of the provisions of Section 3(3)(c) and 3(3)(d) read with Section 3(1) of the Act. The anti-competitive conduct of the firms has been established based on exchange of rates to be quoted in upcoming tenders amongst the errant firms, numerous calls amongst the key persons of these firms before and during the period of the tenders and admission by one of the firms which confirmed and revealed the existence and modus operandi of the cartel.