Key Points
New Delhi, The competition law provision to impose penalties based on a company's global turnover will act as a deterrent to more egregious violations, encourage entities to opt for commitments and settlements and help in faster corrective measures, according to experts..
With the amendments coming into force, the Competition Commission of India (CCI) now has the power to impose a penalty of up to 10 per cent of a company's global turnover for competition law violations...
Avaantika Kakkar, Partner (Head - Competition Law) at leading law firm Cyril Amarchand Mangaldas, said the calculation of penalty based on global turnover is intended as a deterrent to more egregious violations of competition law...
As a result, companies and individuals are encouraged to opt for commitment and settlement options or leniency, Choukse said.. "Big tech players and companies having multi-products and multi-services will be impacted more, in case the CCI decides to impose penalties for competition law violations," he said and highlighted that overall, the provision pertaining to penalties based on the global turnover of a company will act as a deterrent and help curb anti-competitive practices...
According to him, since there is no mention of the transition process, with respect to the implementation of the new norms, it is yet to be clear whether the amended norms will be applicable to ongoing cases as well.. Alay Razvi, Partner at law firm Accord Juris LLP, said the amendment, which will allow penalties to be calculated on a company's global turnover, will help in faster corrective measures to ensure fair competition...
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