Competition Commission of India (General) Regulations, 2024, Notified

In June this year, the CCI released a draft of the proposed amendments to Competition Commission of India (General) Regulations, 2009, for stakeholder consultation. Taking into account the suggestions, the final version of Competition Commission of India (General) Regulations, 2024 was notified on September 17, 2024, repealing the General Regulations, 2009.

While the draft introduced the concept of interlocutory applications as well as set out exorbitant fees for miscellaneous applications to deter frivolous submissions, the definitions of “Interlocutory Application” and “Miscellaneous Application” needed further clarity. Hence, the definitions now specify that applications filed during the pendency of a case instituted under Section 19 of the Act or proceedings initiated pursuant to a Miscellaneous Application are Interlocutory Applications and applications filed post passing of the final order in a case instituted under Section 19 of the Act are ‘Miscellaneous Application’.

Further, the submission signing, and affidavit requirement was restricted to substantive submissions, exempting applications seeking extensions of time or adjournments. Similarly, the self-imposed requirement of passing the final order within 90 days of the interim order, which was removed in the draft, has been reintroduced with the timeline being extended to 180 days. Some other minor adjustments pertaining to procedure for inquiry, marking confidential information in red ink, and clarity on engaging more than one lawyer or law firm were also made.

However, the changes introduced in the draft pertaining to translations, use of letterheads, content of information, filing of submission, investigation report, especially the appointment of agencies, and procedure for inquiry, etc., remain the same. A general statement on the acceptance of the comments has been shared by the commission for clarity purposes.

A notable change introduced through the draft in June that remains unchanged is the authorization to appoint agencies to monitor the compliance of the orders passed. The agencies would primarily be responsible for monitoring and scrutinizing non-compliance against the orders of the commission, especially concerning matters of settlements and mergers and acquisitions as per Section 48A, 48B, and Section 31 of the Competition Act, 2002. The agencies would include company secretaries, management consultancy, chartered accountants, cost accountants, accounting firms, and any other professional organizations.

By delegating monitoring duties to external agencies, the commission can better oversee companies’ activities, ensuring they adhere to prescribed orders. The third-party agencies will be responsible for auditing, reporting, and tracking firms’ activities to ensure full compliance with CCI’s directives. This will reduce the potential for non-compliance, as businesses will be monitored more closely.