Competition Commission of India (CCI) to anvil an Online Portal to facilitate easier and faster compliance

Mumbai, 7 October 2016 (GPN) : In a conference organised by the Confederation of Indian Industry (CII) in Mumbai on Competition Law and Practice today, the Chairperson of the Competition Commission of India (CCI) Mr. Devender Kumar Sikri observed that Competition law is a complex mix of economic and legal principles, and as the Indian economy is standing at a historic juncture, it is imperative that the industry familiarises itself with its various provisions and their implications. The Chairperson stressed the fact that the Commission is aware of the issues that the industry faces and will continue to engage with its stakeholders to ease how business is done in India.

Addressing the long standing demand of industry to issue guidelines, Chairman Sikri announced CCI plans to release a ‘Competition Compliance Manual’. The CCI hopes that such a manual would foster a spirit of compliance with competition law. The Chairperson also indicated that the Commission could further alleviate industry concerns by issuing guidelines relating to non-compete clauses and the imposition of penalties.
The Chairperson further observed that “under the Hon’ble Prime Minister programme of Ease of doing Business, we are in the process of developing a ‘Know it Yourself Online Module’ that will help enterprises understand whether any contemplated transaction is notifiable or not.” The Chairperson promised that the aim of the manual would be to help industry stakeholders better understand and navigate the merger control regime in India.

Ms. Zia Mody, Chairperson, CII National Committee on Regulatory Affairs and Managing Partner of AZB & Partners while appreciating the sincere initiatives undertaken by the Chairperson, stated that the Commission has done a remarkable job in a short span of time and has facilitated communication with its various stakeholders on a regular basis. She observed that the competition law regime to be extremely dynamic and is continuously evolving based on the cases brought before it. Certain issues that face the industry require deliberations which would thereby ease the way in which business is carried out in India. Ms. Mody echoed the industry sentiment that the CCI should issue guidelines on the imposition of penalties.

Mr Bharat Vasani, Member, CII National Committee on Regulatory Affairs and Chief Legal and Group General Counsel, Tata Sons Limited addressed the conference and voiced various concerns of the industry. Mr. Vasani highlighted that the current merger control regime needs to undergo changes to reduce the number of merger filing, many of which are made just on technical grounds and would not materially affect the market. Mr. Vasani also recommended that the Commission should consider having a bench in Mumbai given the significant M&A activity that arises from the region. Mr. Vasani stressed the need for guidelines to better assist the industry to determine the likelihood of penalties which could be imposed and on issues, such as the lack of clarity surrounding the definition of control under the Competition Act.

Mr. Vasani’s sentiments were echoed by Dr Ajit Ranade, Member, CII National Council on Economic Affairs and Chief Economist, Aditya Birla Group who appreciated the initiatives undertaken by the Commission in the recent past and also highlighted the concerns of the industry.

The Annual Conference on Competition Law and Practice was organised by CII on 7 October 2016 in Mumbai, where along with the Chairperson – CCI, Legal Experts and Industry, the Conference was also addressed by the Member – CCI Mr M.L. Bunker and the Secretary – CCI, Ms. Smita Jhingran who presided over the Technical Sessions ‘Cartels and Leniency’ and ‘Merger Control- what Impacts Industry?’ respectively. The Conference was well attended by over 200 delegates.