On 17th Sept 2024, CCI (General) Regulations, 2024 are notified, these supersede the earlier 2009 Regulations. Conspicuous development in the freshly minted Regulations is introduction of ‘Monitoring’ of the orders passed by CCI [see Reg. 54].
Till now, in overall Scheme of CCI Act, this essential tool of ‘monitoring’ was missing. Working of Act, in nutshell, looks like this, viz.
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Jurisdiction of CCI |
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Sec. 3(4) and 4 |
Anticompetitive Agreements and Abuse of Dominant Position |
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Initial Inquiry or Reference |
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Sec. 19 to 21 A |
– Inquiry into certain agreements and dominant position of enterprise – Inquiry into combination by commission – Reference by statutory authority – Reference by Commission |
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Procedure followed by CCI |
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Sec. 26 |
CCI may ask for the Director General’s investigation in case of “prima facie” violations of the Act. |
Type of Orders passed by CCI, upon finding that the enterprise is in violation of Sec. 3 or 4,
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Sec. 27 |
– Direction to discontinue – Ban from Re-entry – Penalty – Direction to modify the agreement which is anticompetitive. |
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Sec.28 |
– Direction for division of enterprise By transfer or vesting etc. |
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Sec. 31 |
– Approve Combination – Give opinion on appreciable adverse effect on combination – Direct modification to combination to eliminate adverse effect. |
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Sec. 33 |
– Interim orders to the above effect of temporary restrain etc. |
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Sec. 42A |
– Compensation for contravention of CCI’s order |
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Sec. 43A |
– Penalty for non-furnishing information
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Sec. 48 A |
– Accept any suitable settlement proposal given by enterprise prior to passing of order u/s 27 or 28 |
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Sec 48 B |
– Accept any suitable commitments given by enterprise during inquiry. |
From the above it is clear that with introduction of new sections being 48A and 48B [wef. 11.4.2023] and for proper implementation of Sec. 31, it became necessary that robust monitoring is required. Consequently, Regulation 54 was introduced, mandating the appointment of professionals (CA/CS/CCA). This regulation is crucial for enhancing the functioning and implementation of the CCI, ensuring a balanced system to deter any wrongdoers.
