Fairplay panel wants to be fair to confessors

NEW DELHI: Corporate houses need not lose sleep over long-drawn litigation over violation of competition law once the country’s competition regulator gets enforcement powers.
Close on the heels of capital market regulator Sebi, Competition Commission of India (CCI) has decided to introduce consent orders, which are settlements with those charged with offences.

The move is aimed at faster disposal of cases. The new provision will reduce the cost and time for enforcement action and check against litigation over the regulator’s orders.
Consent orders are passed to settle cases against a party who is prima facie found to have violated the law. The party consents to stop the activities that could be subject to regulatory action and the commission refrains from further proceedings.

“The commission, however, may impose a penalty, which could be less than it would have levied otherwise. It may also ask one party to compensate the other. The commission would also get the consent order published so that a third party, who may be affected by the order or by a settlement between the parties before the commission, could be given a hearing,” a government source told ET.

America’s Federal Trade Commission also passes consent orders in anti-trust cases and the Securities and Exchange Commission settles more than 90% of administrative and civil cases by such orders.

The provision for consent orders is part of the general regulations that CCI has formulated to enable quick settlement of disputes. The commission would not allow more than three adjournments in any case for both the parties together. The regulator would also make use of IT to further shorten the proceedings. Notices would be served and offenders would be summoned by email.

CCI would issue interim orders within a week. The party against which an interim order is passed would get time-bound hearing. On completion of proceedings, the regulator would pass orders within three weeks. Any party affected by an anti-competitive practice would be able to complain to the commission by email or fax. CCI would also hold a simple meeting of the parties — a preliminary conference to see if there is a need for intervention.