House panel seeks periodic review of competition law framework, cites repeated violations of rules

New Delhi: A parliamentary panel on Tuesday pushed for a periodic review of the regulatory architecture of the competition law to be able to keep up with the pace of change, especially in the digital sector, and deal with evolving antitrust problems more effectively.

In a report tabled in the Rajya Sabha on Tuesday, the panel raised concerns on repeated contraventions of the competition law and regulations by corporate entities. It called on the Competition Commission of India (CCI) to "vigorously enforce" the monetary penalty guidelines, which view repeated contraventions as an aggravating factor, so as to ensure deterrence for future offences.

At the same time, it pitched for a transparent methodology for the calculation of the penalty amount. The CCI, it said, should provide the detailed methodology in its orders as to how the penalty amount is calculated.


While the committee appreciated that the CCI has achieved a 98% of the penalty recovery rate that remain legally enforceable, it also flagged that a substantial portion of the penalties imposed by the regulator has been stayed or quashed on appeal. This suggests the need to further bolster the robustness of investigations, evidence gathering, and penalty assessment.

"The Committee recommends that steps should be taken in this regard which could help improve the sustainability of CCI orders during judicial scrutiny and enhance the overall effectiveness of the process," according to a statement by the Rajya Sabha secretariat.

Arguing that monopolies can potentially affect micro, small and medium enterprises and start-ups the most, the Committee has recommended that the regulator provide adequate protection to such entities from unfair or anticompetitive conduct.

The committee held that the effective enforcement of the competition law will hinge on strong awareness among market participants. So, it recommended that the regulator continue to bolster its advocacy and outreach initiatives.

Several competition issues, the panel said, cut across sectors that are regulated by different statutory and sectoral watchdogs

The panel has pushed for an enabling framework to deepen cooperation and coordination between the CCI and other regulators, stressing that several competition issues in the modern economy cut across sectors that are regulated by different statutory and sectoral watchdogs.