CCI gives effect to higher penalty, settlement scheme from Wednesday
NEW DELHI : The Competition Commission of India (CCI) on Wednesday gave effect to two schemes under which it will offer negotiated settlements in antitrust cases and accept commitments from businesses for change in their behaviour in order to avoid an investigation. The sought after commitment and settlement schemes were added to the Competition Act last year itself by way of legislative amendments.
The detailed guidelines brought out by the CCI brings them into operation from Wednesday. Separately, CCI also notified guidelines for determination of turnover or income for computing penalty and a set of guidelines for deciding on the quantum of penalty in cases of anti-competitive practices.
The amendments to the Competition Act last year broadened the scope of penalty by clarifying that it is to be levied on the global turnover of the erring entity. Anti-competitive practices attract penalty up to 10% of the turnover and, in the case of cartels, up to three times its profit for each year of the continuance of such behaviour, or 10% of its turnover or income for each year of the continuance of such agreement, whichever is higher.
The commission said in a statement that it received suggestions during the public feedback period that turnover for the purpose of penalty should be based on standalone financial statements. “CCI observes that consolidated financial statements are to be considered only in cases where the enterprise is required to prepare consolidated financial statements under any applicable law (whether domestic or otherwise)," CCI said.
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