The CCI has notified the Penalty Guidelines which are effective as of March 6, 2024. The Penalty Guidelines have notified the methodology for determining the following:
- penalty for enterprises under Section 27(b) and the proviso to Section 27(b) of the Act (i.e., imposing penalty upon each person or enterprise which has abused its dominant position);
- penalty for persons liable under Section 48 of the Act (i.e., contravention by companies);
- monetary penalty under Section 43A of the Act (i.e., power to impose penalty for non-furnishing of information on combination); and
- monetary penalty under Sections 42 (i.e., contravention of orders of the Commission), 43 (i.e., penalty for failure to comply with directions of Commission and Director-General), 44 (i.e., penalty for making false statement or omission to furnish material information), and 45 (i.e., penalty for contraventions in relation to furnishing of information) of the Act.
In relation to abuse of dominant position for which penalty is to be imposed under Section 27(b) of the Act, the Commission is to consider the nature and gravity of the contravention and the nature of the industry or sector affected. Further, adjustments can be made based on factors such as inter alia the duration of the contravention or involvement in such contravention, role of the relevant enterprise in orchestrating the contravention, admission of contravention, and extent of cooperation by the enterprise during the Director-General's investigation and/or proceedings before the Commission.
The Commission, when determining the amount of penalty pursuant to the Penalty Guidelines in cases of non-furnishing of information on combinations under Section 43A of the Act, is to consider inter alia the consummation or part consummation of combination without giving notice, violation of standstill obligations, non-furnishing of information during an inquiry by the Commission and the conduct of the parties (such as making voluntary disclosures and cooperation during the inquiry).
Additionally, in relation to penalties for failure to comply with directions of the Commission or making false statements under Sections 42, 43, 44 and 45 of the Act, the Commission is to consider inter alia the extent and reasons of non-compliance or non-cooperation, nature of misleading information and knowledge of the person furnishing the information being untrue or incomplete.
Originally published by 08 May, 2024
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