Key Points
The lower house of Parliament on Wednesday approved changes to the Competition Act that seek to cover global deals by digital companies under the local law and empower the antitrust watchdog to impose penalties on MNCs for violations based on their international revenue..
The Competition (Amendment) Bill, 2022 seeks to capture deals happening in global digital companies, provided the entities involved have a strong business presence in India..
For imposing penalties on MNCs, the CCI, as per the amendments, will consider the global turnover of the company being penalised instead of the current practice of calcu- lating the penalty based only on the relevant market revenue..
From a business point of view, the consideration of total turnover may lead to unfair and punitive outcomes and would also lead to discrimination between enterprises who commit a similar contravention but are penalised differently depending on the expanse of their business, said Avantika Kakkar, partner and head of competition at law firm Cyril Amarchand Mangaldas...
Settlement is a framework where an entity accused of an antitrust violation can settle the case with the CCI without admitting or denying guilt. (Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)..
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