The Ministry of Corporate Affairs (“Ministry”) has notified that the amendment under the following provisions of the Competition (Amendment) Act, 2023 (“Amendment Act”) will gain effect from 06.03.2024:
- Section 20- This provision amends Section 27 of Competition Act, 2002 (“Principal Act”) which deals with the penalty which may be imposed by the Commission upon inquiry of agreements or abuse of dominant position. Now, the penalty shall not be more than 10% of the average income or turnover. The Commission may also direct enterprises or group of enterprise after inquiry to discontinue the anti-competitive agreement and not to re-enter in future
- Section 35- This provision substitutes Section 48 of the Principal Act with a new section 48 and also inserts sections 48A, 48B and 48C. Section 48 deals with the contravention committed by companies that whoever was in charge at the time of the contravention and responsible for the company’s business conduct will be held liable for contravention under the Principal Act. On the other hand, the newly inserted section 48A provides for settlement and Section 48 B provides to offer commitments by the enterprises in case an inquiry has been initiated against it and may make an application to settle the inquiry or offer commitments. Section 48C provides that for non- compliance of such settlement and commitments the Commission might restore or initiate the inquiry along with heavy costs.
- Section 40- This provision amends Section 53N of the Principal Act. It deals with the procedure to make an application by an enterprise to Appellate Tribunal, to adjudicate compensation claims which may arise from the findings of the Commission.
Background:
The Amendment Act was notified with the aim to broaden the scope of anti- competitive agreements, introduce limitation period, to provide trust based business environment, to ensure faster market correction, to provide regulatory certainty etc. The provisions of this Amendment Act are gradually being made effective on different dates as notified by the Central Government.
For a detailed information, please refer to the attached document.
Source: Ministry of Corporate Affairs
