Keywords Antitrust, India, Competition
Commission of India, penalty regulations, penalty reduction
The Competition Commission of India (Lesser Penalty)
Regulations, 20091 have been published in the official
gazette. These regulations are the Competition Commission of
India's (CCI) version of the successful leniency programs in
the United States and Europe. A key difference with the US and EC
model is that ringleaders are not expressly denied the opportunity
to make a claim for the 100 percent penalty reduction. The
provisions of the Competition Act, 2002 (CA 2002) relating to
anti-competitive agreements and prohibition of abuse came into
force on 20 May 2009.
Reduction in Fines
Depending on the time of submission of the application and the
nature of evidence provided, an applicant could be entitled to a
reduction in penalty of 30, 50 or even up to 100 percent.
An applicant would be entitled to a reduction in penalty of up
to 100 percent (total immunity) if it is the first to make a vital
enabling the CCI to form a prima-facie opinion regarding the
existence of a cartel; or
in a matter under investigation that enables the CCI or
Director General to prove the cartel infringement.
Subsequent applicants would be marked as second and third in the
priority status and may be granted a reduction of penalty of up to
50 or 30 percent respectively, if the information would provide
significant added value to the evidence already in possession of
the CCI or Director General.
Procedure for Reduction
The CCI would mark the priority status of the applicant after
receipt of an application with material information. Information
can be conveyed orally, through email or by fax which would make
the applicant eligible for a claim of priority status provided a
written application with all information is made within 15
Recent press reports suggest that the government of India has
initiated the process to notify the provisions of the CA 2002
dealing with mergers and acquisitions.
Corporations in the United States, Europe and other interested
stakeholders with operations in India, or those interested in
setting up operations there, are already following the developments
of this regime and engaging with the government in consultations
with regard to concerns they have about the regulations.
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issues and developments of interest. The foregoing is not a
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Copyright 2009. Mayer Brown LLP, Mayer Brown
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In the wake of liberalization and privatization that was triggered in India in early nineties, a realization gathered momentum that the existing Monopolistic and Restrictive Trade Practices Act, 1969 was not equipped adequately enough to tackle the competition aspect of the Indian economy.
The Legal Metrology Act, 2009 was passed by the Indian Parliament in order to repeal and replace The Standards of Weights and Measures Act, 1976 and the Standards of Weights and Measures (Enforcement) Act, 1985.
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