Procedural Checklist under the Competition Act, 2002

 

📝 Procedural Checklist under the Competition Act, 2002

1. Filing of Information (Section 19)

• Eligibility: Ensure the complainant (person, enterprise, or consumer) is eligible to file the information.

• Grounds for Complaint: Determine the anti-competitive conduct (i.e., agreements, abuse of dominance, combinations).

• Format: Prepare and submit the complaint in the prescribed format with sufficient documentation and evidence.

2. Prima Facie Opinion (Section 26(1))

• Timeline: CCI must form a prima facie opinion within 30 days of receipt of the information.

• Decision:

  • Dismissal if no prima facie case is found.

  • Order for investigation if the case appears valid.

3. Investigation by Director General (DG)

• Appointment: DG is appointed for investigation if CCI forms a prima facie opinion.

• Process: DG collects evidence, summons documents and witnesses, and conducts investigations.

• Report: DG submits an investigation report to CCI with findings.

4. Review of DG's Report (Section 26(4))

• CCI's Review: CCI examines the DG's report.

• Decision:

  • Proceed to hearing if CCI agrees with the report.

  • Order further investigation if necessary.

5. Hearing of Parties (Section 26(7))

• Notice of Hearing: CCI issues notice to all parties involved in the investigation.

• Submissions: Parties submit their responses, written arguments, and evidence.

• Oral Hearing: If needed, CCI may hold oral hearings.

6. Final Order (Section 27)

• Issuing Orders: CCI may pass one of the following orders:

  • Dismiss the case.

  • Impose penalties up to 10% of turnover or 3x profits.

  • Issue cease-and-desist orders.

  • Corrective actions (modification of agreements, business practices).

7. Appeal (Section 53B)

• Filing Appeal: If aggrieved by CCI's decision, parties may file an appeal to NCLAT within 60 days.

• Further Appeals: NCLAT’s decision can be appealed to the Supreme Court.

8. Penalties and Compliance (Section 27)

• Imposing Penalties: Ensure compliance with penalty provisions for violating the Act.

• Order Compliance: Follow-up on compliance with CCI orders regarding conduct modification.

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✅ Additional Considerations

• Leniency: If involved in cartelization, a party may apply for reduced penalties under CCI’s Leniency Regulations.

• Merger Control: If the case involves mergers or acquisitions, ensure compliance with Section 5 and 6 on combinations.

• Confidentiality: Maintain confidentiality of sensitive documents as per CCI regulations.