New Delhi (ABC Live): In 2023–24, the Competition Commission of India (CCI) advanced important legislative reforms, such as the Competition (Amendment) Act, 2023, and modern regulatory tools like commitment and settlement mechanisms. However, despite these developments, enforcement weakened sharply. Total penalties dropped from ?2,672.48 crore in FY 2022–23 to just ?2.55 crore in FY 2023–24.

This report critically examines the Competition Commission of India’s performance, enforcement philosophy, institutional trends, and legal standing based on public data, case law, and comparative insights.

Enforcement Trends: Declining Penalties Despite Steady Caseload

Though complaint volumes held steady, actual enforcement collapsed. In FY 2023–24, only two orders found contravention, and no penalties were issued under Section 27.

Analysis: The Competition Commission of India appears to have shifted to an advisory and corrective model. However, this drastic drop risks eroding its deterrent power.

Key Cases Reveal Shift Toward Non-Punitive Enforcement

1. Chandigarh Housing Board (CHB)

• Finding: Abuse of dominance (Section 4)

• Outcome: Guilty, but no fine imposed

• Implication: Deterrent value lost despite clear findings

2. Tata Motors

• Finding: Alleged restrictive dealership agreements

• Outcome: Case closed despite DG report

• Implication: Raises questions on CCI’s internal consistency

3. Rajasthan Chemists Associations

• Finding: Collective boycott (Section 3(3))

• Outcome: Guilty verdict, no penalty

• Implication: Compliance impact is likely minimal

These cases indicate a deliberate tilt by the Competition Commission of India toward leniency, which, while procedurally sound, may reduce future deterrence.

Legal and Regulatory Reforms: Power Without Execution?

The Commission introduced key reforms:

• Lesser Penalty Plus Regulations (2024): Encourages cartel whistleblowing

• Commitment & Settlement Mechanisms (2024): Offers negotiated outcomes

• Penalty Guidelines (2024): Clarifies the calculation of fines

Issue: Despite these tools, the Commission has yet to use them meaningfully. The Competition Commission of India must operationalise these provisions to restore effectiveness.

Judicial Support vs. Appellate Scrutiny

? Judicial Support for CCI:

• Coal India Ltd. v. CCI (2023, SC): CCI has jurisdiction over public entities

• JK Paper Ltd. v. CCI (2023, Gujarat HC): Upheld prima facie probe powers

• Ultratech Cement v. CCI (2023, Delhi HC): Validated procedural discretion

?? NCLAT Appeals: CCI Under Pressure

Although courts back its mandate, the Competition Commission of India faces rising appellate scrutiny, indicating a need to improve case strength and reasoning.

Institutional Capacity: Outreach Improves, Training Shrinks

The Commission expanded external engagement but halved internal officer training. If this trend continues, it may affect long-term enforcement capacity.

Global Engagement: Diplomatic Wins, Domestic Gaps

CCI’s Global Activities

• Hosted the 8th BRICS Competition Conference

• Joined ICN Steering Group

• Signed 10+ MoUs with global regulators

While India’s international antitrust visibility has grown, domestic enforcement remains the metric that matters most.

Conclusion

The Competition Commission of India enters FY 2024–25 equipped with advanced legal tools and global recognition. Yet, its weak enforcement outcomes and low penalty record signal a widening gap between potential and performance.

To remain effective, the Commission must shift from passivity to proactive action, balancing reform with results.

Policy Recommendations for FY 2024–25

1. Enforce Penalties in proven contraventions—even symbolically

2. Activate Settlement & Commitment Tools with clear outcomes

3. Reinstate Officer Training to boost internal capacity

4. Create a Digital Markets Unit to address platform dominance

5. Publish Quarterly Enforcement Data for transparency

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