On the 20th of February 2024, a significant development unfolded in the realm of competition law in India with the introduction of the Competition Commission of India (Lesser Penalty) Regulations, 2024. These regulations, brought into effect by the Competition Commission of India, aim to regulate the process and criteria for granting lesser penalties to entities involved in cartel activities under the Competition Act, 2002.
The regulations provide a structured approach for the grant of lesser penalties and lesser penalty plus, depending on various factors such as the timing and quality of disclosure. They establish a hierarchy wherein the first applicant making a vital disclosure may receive a reduction in penalty up to 100%, with subsequent applicants potentially receiving lesser reductions based on the value of their disclosures.
Moreover, the regulations lay down a clear procedure for the application and evaluation process. Applicants are required to submit comprehensive information and evidence to the designated authority within specified timelines. Failure to comply may result in the forfeiture of priority status and consequent benefits.
Confidentiality is paramount throughout the process, with strict provisions ensuring the protection of the applicant’s identity and submitted information. However, there are exceptions where disclosure may be necessary, such as legal requirements or with the applicant’s consent.
Additionally, the regulations address the inspection and withdrawal of applications. Parties are granted access to non-confidential versions of submitted information after the Commission forwards the investigation report. Withdrawal of applications is permitted under certain conditions, with implications for the use of submitted information by the Commission or Director General.
The introduction of these regulations signifies a proactive approach by the Competition Commission of India towards combating cartel activities while incentivizing cooperation from involved entities. By providing a framework for the grant of lesser penalties, the regulations aim to encourage early detection and disclosure of anticompetitive practices, thereby promoting fair competition and consumer welfare in the Indian market.
