RS Panel Calls for Stronger Competition Law Enforcement
Committee urges periodic review of CCI regulations, greater protection for MSMEs and stricter action against repeat offenders
- Rajya Sabha panel presents 257th Report on CCI’s 2024 regulations.
- Recommends regular review of competition laws to match evolving markets.
- Calls for stronger safeguards for MSMEs, startups and small businesses.
- Urges stricter penalties for repeat violations and enhanced regulatory coordination.
GG News Bureau
New Delhi, 21st July: A Rajya Sabha Committee on Subordinate Legislation has recommended a comprehensive review of India’s competition law framework, stronger enforcement against anti-competitive practices and enhanced protection for MSMEs and startups, while presenting its 257th Report on the Competition Commission of India (CCI) regulations.
The report, presented in the Upper House on Tuesday by the committee chaired by Milind Murli Deora, examined four key regulatory frameworks notified by the CCI in 2024, including regulations on commitments, settlements, determination of turnover or income, and monetary penalties.
The committee recommended that the Ministry of Corporate Affairs and the CCI periodically review the country’s competition law architecture through extensive stakeholder consultations and benchmarking against global best practices to ensure India’s regulatory framework remains competitive and responsive to emerging challenges, particularly in the digital economy.
Expressing concern over declining suo motu cases, the panel called for intensified awareness campaigns among businesses, especially MSMEs, startups and emerging enterprises, to improve voluntary compliance and encourage reporting of anti-competitive practices.
The committee stressed that monopolistic practices disproportionately affect smaller businesses and recommended vigorous enforcement of competition laws to safeguard fair market access and promote innovation.
It also expressed concern over repeated violations by corporate entities, warning that such offences risk becoming a “cost of doing business.” The panel urged the CCI to strictly implement its Monetary Penalty Guidelines, 2024, treating repeat violations as an aggravating factor to strengthen deterrence.
While appreciating the CCI’s recovery of more than 98 per cent of legally enforceable penalties, the committee said investigations, evidence collection and penalty assessment should be further strengthened to improve the sustainability of CCI orders during judicial scrutiny.
The report also recommended greater transparency in penalty calculations by clearly explaining the methodology adopted in each order.
To address emerging market challenges, the panel called for regular capacity-building programmes for CCI officers focusing on artificial intelligence, digital markets, emerging technologies and international best practices.
It further recommended stronger institutional coordination between the CCI and sectoral regulators through mechanisms such as Memoranda of Understanding (MoUs) to improve information sharing and policy coherence.
The committee also urged the CCI to undertake regular market studies to strengthen evidence-based policymaking and improve competition enforcement across sectors.
