THE POLICY EDGE

Rajya Sabha Committee 257th Report Recommends Comprehensive Competition Regulation and Enforcement Reforms

The Rajya Sabha Committee on Subordinate Legislation, in its 257th Report, examined four Competition Commission of India (CCI) regulations notified in 2024 and recommended measures to strengthen their implementation through periodic regulatory review, greater transparency, stronger enforcement, institutional capacity building and improved regulatory coordination.

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Key Details

The Committee's 257th Report reviewed four Competition Commission of India (CCI) regulations notified in 2024 following amendments to the Competition Act, 2002, and recommended measures to strengthen their implementation.

Regulations Reviewed

  • Competition Commission of India (Commitment) Regulations, 2024

  • Competition Commission of India (Settlement) Regulations, 2024

  • Competition Commission of India (Determination of Turnover or Income) Regulations, 2024

  • Competition Commission of India (Determination of Monetary Penalty) Guidelines, 2024

Key Findings and Recommendations

Regulatory Area

Committee Recommendation

Regulatory Review

Periodically review the competition law framework through stakeholder consultations and benchmarking against international best practices.

Commitment & Settlement

Expand awareness and outreach to encourage wider use of the new commitment and settlement mechanisms.

Protection of MSMEs

Strengthen enforcement against anti-competitive practices affecting MSMEs, start-ups and emerging enterprises.

Penalty Framework

Strictly implement the 2024 Monetary Penalty Guidelines, treat repeat violations as aggravating factors and provide transparent methodologies for penalty calculations.

Investigations

Strengthen evidence gathering and investigative capacity to improve the sustainability of CCI orders during judicial review.

Regulatory Coordination

Establish structured coordination with sectoral regulators through mechanisms such as Memoranda of Understanding (MoUs).

Institutional Capacity

Continue officer training, specialised expertise and regular market studies to support evidence-based competition enforcement.


The Focus Is Shifting from New Rules to Better Enforcement

The Committee's review suggests that India's recent competition law reforms have moved into a new phase. Rather than recommending further legislative changes, it argues that the effectiveness of the 2024 regulatory framework will now depend on how consistently it is implemented, enforced and adapted to rapidly evolving markets. As digital business models become more complex, the Committee calls for periodic reviews of the broader competition framework so that regulation remains responsive to technological change and international best practices.

Where the Committee Wants Stronger Institutions

The report identifies several areas where institutional capability now matters as much as the legal framework itself.

  • Keep the framework up to date through regular regulatory reviews and stakeholder consultations.

  • Strengthen enforcement to better protect MSMEs, start-ups and smaller enterprises from anti-competitive conduct.

  • Improve regulatory credibility through transparent penalty calculations and stronger evidence gathering.

  • Promote faster compliance by expanding awareness and use of the new commitment and settlement mechanisms.

  • Build institutional capability through specialised training, market studies and stronger coordination with sectoral regulators.

Competition Policy Is Becoming More Preventive

Taken together, the recommendations indicate a broader shift in India's competition policy. The Committee views effective competition governance as extending beyond investigating violations after they occur. It places greater emphasis on institutional learning, regulatory coordination, voluntary compliance and evidence-based policymaking so that competition authorities can respond more effectively to increasingly dynamic and technology-driven markets.


What Are Commitment and Settlement Mechanisms?

The Competition Commission of India (Commitment) Regulations, 2024 and Settlement Regulations, 2024 allow enterprises under investigation for certain competition law violations to voluntarily resolve proceedings by offering commitments or settlements approved by the Competition Commission of India. These mechanisms aim to secure faster market corrections while reducing prolonged litigation and regulatory uncertainty.


Policy Relevance

  • Keep competition regulation adaptive: Periodic reviews and international benchmarking can help India's competition framework remain responsive to digital markets and evolving business models.

  • Strengthen enforcement quality: Better investigations, transparent penalty calculations and stronger evidence gathering can improve the durability of CCI decisions during judicial review.

  • Protect contestable markets: More effective enforcement against anti-competitive practices can improve market access for MSMEs, start-ups and emerging businesses.

  • Improve regulatory coherence: Structured coordination between the CCI and sectoral regulators can help address competition issues that increasingly span multiple regulated sectors.

  • Build long-term institutional capability: Continued investment in specialised expertise, market intelligence and evidence-based analysis can strengthen competition governance beyond individual enforcement actions.


Follow the Full News Here: 257th REPORT OF COMMITTEE ON SUBORDINATE LEGISLATION, RAJYA SABHA

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