The government has made changes to the competition law regarding the investigation procedure. The Competition Commission of India (CCI) can now issue show cause notices to parties involved and give them a chance to respond before making a final decision.
The Competition Act, which is overseen by the corporate affairs ministry, was amended in April 2023. Following the amendment, various provisions and regulations have been announced.
According to a notification from the ministry, the provisions of section 19(f) of the Act will be in effect from September 19. This section deals with the investigation procedure by the CCI.
After completing the investigation, the regulator has the authority to close the case or impose penalties on entities for engaging in anti-competitive practices under Section 27. Before making a final decision, the CCI must issue a show cause notice outlining the alleged contraventions and provide a chance for the concerned parties to be heard.
The CCI has released regulations related to this notification as part of the general regulations issued on September 17. Vaibhav Choukse, a Partner specializing in Competition Law at the law firm JSA, believes that this amendment will enhance transparency and procedural fairness in CCI proceedings.
He noted that the amendment addresses a gap in Section 26, which outlines the procedure for handling complaints from initial receipt to final disposal, including the investigation by the Director General (DG).
Previously, if the DG found a violation, the CCI could only conduct further inquiry. The regulator was not explicitly authorized to close the case if it disagreed with the DG’s findings.
Choukse explained that the amendment now allows the CCI to make appropriate decisions in all cases, whether the DG finds a violation and further investigation is needed, or if no contravention is identified but additional investigation is required based on objections or suggestions from the parties involved.