Competition Law Reforms Gain Momentum
The developments come in the backdrop of the Competition (Amendment) Act, 2023, which marked one of the most significant overhauls of India’s competition framework since the enactment of the original Competition Act, 2002. The amended law aims to modernise enforcement mechanisms and align India’s competition regime with global best practices.
To operationalise these reforms, the government has notified multiple rules and regulations, including a revised framework for penalty determination and faster approval timelines for mergers and acquisitions. These changes seek to balance robust enforcement with ease of doing business.
Global Turnover-Based Penalty Framework
One of the most consequential reforms introduced under the amended law is the shift to calculating penalties based on the global turnover of enterprises involved in anti-competitive conduct. This move enhances deterrence, particularly for large multinational corporations operating across jurisdictions.
To provide clarity and consistency, the CCI notified the Determination of Monetary Penalty Guidelines, 2024. These guidelines outline a structured methodology for assessing penalties, taking into account the nature, gravity, duration and economic impact of violations.
Faster M&A Approvals and Green Channel Route
The amended legislation has significantly reduced the statutory time limit for approval of combinations from 210 days to 150 days, enabling faster closure of transactions. This change is expected to benefit investors and businesses by reducing regulatory uncertainty.
Additionally, the Green Channel route continues to play a key role in expediting merger approvals. Under this mechanism, eligible combinations receive deemed approval upon filing, subject to compliance conditions, thereby facilitating swift resolution of non-problematic transactions.
Settlement and Commitment Framework
In another forward-looking reform, the Competition (Amendment) Act, 2023 introduced settlement and commitment mechanisms, allowing parties under investigation to propose remedies or commitments to address competition concerns. This approach promotes faster resolution of cases while conserving regulatory resources.
The framework is designed to enhance transparency and predictability, offering companies an opportunity to correct market distortions without prolonged litigation.
CCI’s Market Study on AI and Competition
The CCI has also undertaken a comprehensive market study on artificial intelligence (AI) and competition, examining the evolving AI ecosystem, value chains and market structures. The study analysed potential competition risks associated with AI-driven markets and business models.
Key concerns identified include concentration in AI value chains due to high entry costs, access to large datasets and skilled talent, ecosystem lock-in effects, and the risk of algorithmic collusion through automated pricing and decision-making systems.
Safeguarding Consumer Welfare in AI Markets
The study further flagged risks of self-preferencing across the AI technology stack and AI-enabled price discrimination through extensive use of consumer data. These practices, if left unchecked, could distort competition and harm consumer welfare.
To address these challenges, the CCI has recommended measures such as self-audits of AI systems for competition compliance, improved transparency, focused advocacy, inter-regulatory coordination and enhanced international cooperation.
Parliamentary Disclosure
The information was provided by Minister of State for Corporate Affairs and Minister of State for Road Transport and Highways, Shri Harsh Malhotra, in a written reply to a question in the Lok Sabha. The disclosure underscores the government’s emphasis on strengthening competition governance in a rapidly evolving digital economy.
As India’s markets grow more complex and technology-driven, the CCI’s enforcement actions and policy initiatives are expected to play a critical role in ensuring fair competition, innovation and consumer protection.
