In a huge relief to India Inc, the recently released draft settlement and commitment framework by the competition watchdog for public consultations, does not require parties facing antitrust probe to admit “guilt” before offering commitment or settlement proposals.

This move is not only likely to provide huge relief to industry but is also expected to ensure faster and sustainable market correction. 

This is also seen as a significant step towards easing the regulatory process for dominant undertakings or entities with market power in India.

Typically anti-trust agencies insist on admission of guilt for the applicants who propose to offer settlements.

The commitment regulations allow such entities to offer commitments at the initial stage of the probe to the regulator, who can then terminate the probe. On the other hand, the settlement regulations enable them to settle at a later stage, i.e., after the submission of the investigation report but before the passing of the final order by the Competition Commission of India (CCI).

Crucially, neither of the regulations requires the parties to admit “guilt”, a facet that has been hailed by the industry.

The proposed regulations are expected to expedite the resolution of competition-related investigations and reduce the regulatory burden on businesses. 

Under the commitment regulations, an entity under investigation for anti-competitive practices can offer commitments to address the CCI’s concerns at the initial stage of the investigation.

If the CCI accepts these commitments, it can terminate the investigation without making a finding of infringement.

Similarly, under the settlement regulations, parties under investigation can propose a settlement after the submission of the investigation report but before the CCI passes the final order. 

If the CCI accepts the proposed settlement, it can conclude the case without making a finding of infringement.

Industry representatives have hailed the CCI move for introducing these regulations, as they believe it will lead to quicker resolutions and reduce litigation costs. “This is a welcome move by the CCI. It will not only expedite the resolution process but also reduce the financial and reputational burden on the businesses under investigation,” said a industry chamber official on condition of anonymity as they are examining the draft regulations to offer their feedback to the regulator.

However, some experts have raised concerns that the new regulations may lead to a lack of accountability and deterrence. “While it is important to reduce the regulatory burden on businesses, it is equally important to ensure that anti-competitive practices are adequately deterred. These regulations may run the risk of reducing accountability,” said a senior partner at a leading law firm in India.

The CCI has invited comments and suggestions from the public, industry, and other stakeholders on the draft regulations until September 13.

It is expected that the final regulations will be notified after considering the feedback received during the public consultation process..

comment COMMENT NOW