Rajya Sabha panel calls for stronger competition law enforcement and periodic regulatory review
The committee has recommended greater protection for MSMEs and startups, enhanced penalty enforcement, institutional coordination and continuous capacity building to keep pace with evolving market dynamics.
The committee recommended that the Ministry of Corporate Affairs and the CCI undertake periodic reviews of the country's competition law architecture through extensive stakeholder consultations and benchmarking against global best practices.
NEW DELHI: The Rajya Sabha Committee on Subordinate Legislation has presented its 257th Report recommending a comprehensive review of India’s competition law framework, stronger enforcement mechanisms and greater institutional coordination to ensure fair and competitive markets.
The report, presented by the committee headed by Rajya Sabha MP Milind Murli Deora on Tuesday, examines four key regulations notified by the Competition Commission of India (CCI) in 2024, including the Competition Commission of India (Commitment) Regulations, Competition Commission of India (Settlement) Regulations, Competition Commission of India (Determination of Turnover or Income) Regulations and the Competition Commission of India (Determination of Monetary Penalty) Guidelines. During its deliberations, the committee heard submissions from the Ministry of Corporate Affairs and the CCI before finalising its recommendations.
The committee recommended that the Ministry of Corporate Affairs and the CCI undertake periodic reviews of the country’s competition law architecture through extensive stakeholder consultations and benchmarking against global best practices. It observed that competition laws must evolve continuously to address emerging challenges arising from digitalisation and rapidly changing market conditions.
Noting a decline in suo motu cases, the committee urged the CCI to intensify advocacy and outreach programmes to improve awareness of competition law, particularly among micro, small and medium enterprises (MSMEs), startups and emerging businesses. It said greater public awareness would encourage voluntary compliance while enabling consumers and businesses to report anti-competitive practices more effectively.
The report stressed that vigorous enforcement of competition laws is essential to safeguard smaller businesses from unfair market practices and monopolistic behaviour. It recommended that the CCI provide stronger protection to MSMEs and startups to ensure they can compete on a level playing field and contribute to innovation and economic growth.
Expressing concern over repeated violations of competition laws by corporate entities, the committee said such violations risk being treated merely as a cost of doing business. It recommended strict enforcement of the Determination of Monetary Penalty Guidelines, 2024, which recognise repeated contraventions as an aggravating factor while imposing penalties.
While appreciating the CCI’s recovery rate of more than 98 percent of legally enforceable penalties, the committee observed that many penalties have been stayed or overturned during judicial proceedings. It recommended strengthening investigations, evidence collection and penalty assessment to improve the sustainability of CCI orders before appellate forums.
The committee also called for greater transparency in calculating monetary penalties and recommended that the CCI clearly explain the methodology adopted while determining penalty amounts in its orders.
Highlighting the increasing complexity of competition regulation in the digital economy, the report recommended continuous capacity building for CCI officials through structured training programmes focusing on emerging technologies, contemporary competition issues and international best practices.
Recognising that competition issues often span multiple regulated sectors, the committee urged the CCI to strengthen cooperation with sectoral regulators through institutional mechanisms and, where appropriate, Memoranda of Understanding to facilitate information sharing, policy coherence and coordinated regulation.
The committee also emphasised the importance of regular market studies, describing them as valuable tools for understanding evolving business practices, emerging trends and competition concerns. It recommended that the CCI institutionalise such studies to support evidence-based policymaking and improve market efficiency.
