The Rajya Sabha’s Committee on Subordinate Legislation, chaired by Milind Murli Deora, has decided to undertake a detailed examination of the Competition Commission of India (Commitment) Regulations, 2024.
This scrutiny will focus on the implementation challenges, operational impact, and alignment with the legislative intent behind the Competition Amendment Act, 2023, which introduced the commitment mechanism to India’s competition law framework.
A key area that is likely to be under consideration is the retrospective applicability of the commitment mechanism, sources said.
In competition law jurisprudence, “commitment” refers to a process where a company under investigation offers to change its business practices to address the concerns raised by the competition authority. This can lead to the closure of the investigation without a formal finding of infringement.
During the public consultation on the draft Commitment Regulations, stakeholders sought transitional provisions to allow commitment applications in ongoing cases that might otherwise miss the opportunity to avail of the commitment procedure.
The CCI examined the said request of the stakeholders and disagreed with the suggestion noting that ‘transitional provisions would necessitate prescription of separate time limits for cases at different stages of investigation / inquiry process, which is not desirable’.
Further, CCI observed that extending the benefit of commitments to the cases where the investigation is in its final stages and the Director General is close to submitting its report is not appropriate as the regulator had already invested its resources in such cases.
Why the Spotlight?
The selection of these Regulations for examination is understood to stem from representations by stakeholders particularly the big tech companies who flagged critical issues in their implementation. Notably, the commitment mechanism—a tool designed to enable swift resolution of anti-competitive concerns by allowing companies to offer voluntary commitments—was introduced through the Competition Amendment Act, 2023, effective April 2023.
However, companies were unable to utilize the mechanism until the framing of the implementing regulations in 2024. This regulatory lag, during which CCI was engaged in extensive consultations with stakeholders, created a vacuum, leaving companies with pending cases ineligible to avail the benefits of the mechanism during the interim period. The delay has been cited as a missed opportunity to resolve significant cases efficiently, particularly in the rapidly evolving digital economy.
Besides the Committee will analyse the scope and clarity of the Commitment Regulations, 2024, impediments to their implementation, including regulatory delays and ambiguities in procedural requirements.
It will also assess the alignment of the regulations with global best practices in competition law, especially given the unique challenges posed by the dominance of big tech platforms, and the potential for further modifications to adapt to socio-economic changes driven by technological and scientific advancements.
Implications
The Committee’s scrutiny underscores the growing importance of proactive regulatory frameworks in addressing challenges posed by the digital economy. Big tech companies, which dominate India’s digital markets, are expected to benefit significantly from a robust commitment mechanism, potentially reducing prolonged litigation and regulatory uncertainty.
However, experts caution that the timely implementation of recommendations will be key to ensuring the effectiveness of these reforms. The Committee’s report, expected in the coming months, is anticipated to influence not only the Competition Commission of India but also the broader discourse on regulatory governance in India.
As India’s economy becomes increasingly intertwined with global technological advancements, the focus on creating a forward-looking and responsive regulatory environment remains paramount, economy watchers said. The scrutiny of the Commitment Regulations, 2024, represents a critical step in this direction, they added.