Global Competition Law is primarly a practitioner's guide presenting the most salient aspects of the major competition laws country by country, giving an overview of their structure and most charasteristic elements.
Global Competition Law also provides insight into possible future developments in the field.

Global Competition Law

The Competition Act provides for a penalty of imprisonment up to three years or a fine of up to INR 250 million (US$ 3,400,000) or both in case of a contravention to an order of the CCI. …

Criminal sanctions

     The CCI can issue cease and desist orders or direct that the illegal agreement be modified to the extent and in the manner it indicates.  

Cease and desist orders

Under Article 27 of the Act, the CCI can impose a penalty of up to 10% of the average turnover of the previous three financial years or, in case of a cartel, a penalty for each of its members of three times its profits or 10% of its turnover for each year of the duration of the agreement, whichever is higher.

The turnover used to calculate the penalty has been modified by the 2023 Amendment of the Competition Act. Contrary to what the Supreme Court decided in a seminal decision (Excel Crop Care (AIR 2017 SC 2734), the turnover which must be taken into account is derived from all products and services provided in the world by a person or company and not only the party's turnover pertaining to products and services that have been affected by the violation. 

Article 48 of the Act provides that, along with the undertaking, any natural person who, at the time the infringement was committed, was in charge of, and was responsible for the conduct of the business, may be deemed guilty of the infringement and liable to be prosecuted and punished accordingly.

Additional fines may be imposed in case of non-compliance with orders of the CCI, non-payment of fine, false statements or omission to furnish material information (Article 42 et seq.). In addition, up to 3 years of imprisonment is incurred for failure to comply with orders or directions issued by the CCI or failure to pay the fine.

Fines

The Competition Act provides for a penalty of imprisonment up to three years or a fine of up to INR 250 million (US$ 3,400,000) or both in case of a contravention to an order of the CCI.

Under Article 46 of the Act, the CCI may grant a reduction of fine in case of full, true and vital disclosure regarding violations of the Act before the Director General has issued its report of investigation. The Competition Commission of India (Lesser Penalty) Regulations, 2017 detail the rules applicable to the leniency scheme. A reduction in fine may only be granted if the applicant: ceases to participate in the cartel from the time of its disclosure unless otherwise directed by the Commission; provides vital disclosure in respect of a cartel; provides all relevant information, documents and evidence as may be required by the Commission; co-operates genuinely, fully, continuously and expeditiously throughout the investigation and other proceedings before the Commission; and does not conceal, destroy, manipulate or remove the relevant documents in any manner, that may contribute to the establishment of a cartel. Originally, only the first three undertakings to file an application could benefit from leniency: the first applicant was granted full immunity, the second up to 50% immunity and the third up to 30% immunity. Since the 22 August 2017 amendments to the Regulations, subsequent undertakings and individuals may also apply for a fine reduction.

Additionally, the Competition (Amendment) Act, 2023 introduced a “leniency plus” mechanism according to which a party under investigation for a cartel may disclose information on a second cartel and receive additional reduction in penalty on the sanctions for participating in both cartels.

Leniency

Any person may make an application to the NCLAT to adjudicate a claim in damages that arises from the findings of the CCI or the orders of the NCLAT in an appeal against any finding of the CCI (Article 53(A)(1)(b)). The NCLAT may also authorize class actions (Article 53(N)(4)). As such, the Act only provides for “follow-on” actions and does not provide for “stand alone” actions.

Global Competition Law

1001. Criminal sanctions

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Les notions juridiques connexes

1001. Criminal sanctions

Demandez un accès gratuit au contenu exclusif Livv – juristes d’entreprise

Les notions juridiques connexes

Demandez un accès gratuit
au contenu exclusif Livv – juristes d’entreprise