Ministry Clarifies Status of Competition Law Enforcement and Updated Penalty Framework Based on Global Turnover
Parliamentary Response on Competition Act Enforcement
The Ministry of Corporate Affairs has provided comprehensive details regarding the implementation and enforcement status of the Competition Act, 2002 through a formal written response to an unstarred question presented in the Lok Sabha. The ministerial reply addressed multiple aspects concerning antitrust enforcement, procedural improvements, and emerging challenges in artificial intelligence markets.
No Cases Instituted in Jammu and Kashmir During 2025
In response to queries about enforcement activities in the Union Territory of Jammu and Kashmir, the Ministry clarified that during the year 2025, no antitrust proceedings or merger-related cases were initiated against any entities operating from or based in Jammu and Kashmir. This information was part of the response to Shri Jugal Kishore's parliamentary question numbered 1600, which was answered on Monday, February 9, 2026.
Implementation of Competition Act Reforms
Operationalisation Through Comprehensive Rule Framework
The Government has taken substantial steps to implement the reforms introduced through the Competition (Amendment) Act, 2023. Following the notification of the Amendment Act on April 11, 2023, the authorities have framed and notified several critical Rules to operationalize the reformed legal framework.
The rules notified under the Competition (Amendment) Act, 2023 include:
- The Competition (Form of Publication of Guideline) Rules 2023 (GSR No. 795(E))
- The Competition (Minimum Value of Assets or Turnover) Rules, 2024 (GSR No. 547(E))
- The Competition (Criteria of Combination) Rules 2024 (GSR No. 548(E))
- The Competition (Criteria for Exemption of Combinations) Rules 2024 (GSR No. 549(E))
Comprehensive Regulatory Framework Established
In addition to the Rules, multiple Regulations have been framed and notified to establish a complete regulatory framework:
- The Competition Commission of India (Lesser Penalty) Regulations, 2024
- The Competition Commission of India (Settlement) Regulations, 2024
- The Competition Commission of India (Commitment) Regulations, 2024
- The Competition Commission of India (Determination of Turnover or Income) Regulations, 2024
- The Competition Commission of India (Combination) Regulations, 2024
- The Competition Commission of India (General) Regulations, 2024
Shift to Global Turnover-Based Penalty Mechanism
Fundamental Change in Penalty Calculation
A significant reform introduced through the Competition (Amendment) Act, 2023 relates to how monetary penalties are calculated and imposed. The amended legislation has shifted the basis for penalty computation from domestic turnover to global turnover of the concerned person or enterprise. This represents a fundamental change in the approach to penalty determination and brings Indian competition law enforcement closer to international best practices.
Detailed Methodology Through CCI Guidelines
To provide clarity and transparency in penalty determination, the Competition Commission of India has issued the CCI (Determination of Monetary Penalty) Guidelines, 2024. These guidelines establish a comprehensive and detailed methodology for calculating and imposing monetary penalties under the reformed framework. The guidelines ensure predictability and consistency in enforcement actions while maintaining the deterrent effect of penalties.
Procedural Reforms for Enhanced Efficiency
Reduced Timeline for Merger Approvals
The Competition (Amendment) Act, 2023 has introduced forward-looking procedural reforms designed to enhance the efficiency and timeliness of proceedings before the Competition Commission of India. A key reform is the reduction in the maximum time limit for approval of combinations or mergers and acquisitions. The timeline has been shortened from 210 days to 150 days, representing a reduction of 60 days in the maximum approval period.
This shortened timeline is expected to provide greater certainty to businesses planning mergers and acquisitions while maintaining the rigor of competition assessment. The reduced timeframe aligns with global best practices and enhances India's attractiveness as a destination for business transactions.
Settlement and Commitment Mechanisms
The amended legislation introduces innovative mechanisms for faster resolution of competition disputes. The settlement framework allows parties to resolve competition concerns through negotiated settlements with the Commission, avoiding prolonged litigation. Similarly, the commitment mechanism enables enterprises to offer commitments to address competition concerns identified by the Commission.
These mechanisms serve multiple objectives: