Parliament approved Competition Amendment Act 2023
Recently the Central Government has notified several provisions of the Competition (Amendment) Act, 2023.
- Through this Amendment Act, amendments have been made in the Competition Act, 2002. The main objectives of these amendments are to ensure regulatory stability and to empower the Competition Commission of India (CCI) to better curb anti-competitive practices.
Key Provisions –
- Hub and Spoke Arrangement: Companies that are not engaged in the same or similar business activities can also be held liable for an anti-competitive arrangement.
- Mergers and Acquisitions (M&A): If the merger and acquisition involves an amount of more than Rs 2,000 crore and the target company has a substantial commercial business in India, companies will have to inform the CCI about any such merger and acquisition.
- The time limit for filing a report in respect of any conduct/act prohibited under the Act has now been extended to three years from the date of its occurrence. Earlier no time limit was fixed for this.
- However, the CCI is at liberty to grant relaxation in the time limit in case of any delay in the matter.
- The Director General of the Investigation Branch of CCI can now investigate not only the parties in violation of the Act, but also their agents. Agents include bankers, legal advisors and auditors.
- CCI will publish draft rules inviting public suggestions to enhance transparency in the rule making process.
- Penalty for giving wrong information/omission has been increased from Rs.1 crore to Rs.5 crore.
Competition Commission of India (CCI)
CCI was established in 2009 under the Competition Act, 2002. It has been constituted under the Ministry of Corporate Affairs. It has been constituted to administer, implement and enforce the Competition Act.
Main objectives of CCI
- Eliminate practices having an adverse effect on competition,
- Promoting and maintaining competition, protecting the interests of consumers,
- Ensuring freedom of trade etc.
Source – The Hindu
