Competition Commission of India Can Appoint Agencies for Order Compliance Monitoring

The Competition Commission of India (CCI) has introduced new regulations allowing the appointment of agencies to ensure compliance with its orders. This change addresses concerns about non-compliance raised by some entities. The updated Competition Commission of India General Regulations, 2024, were announced on Tuesday, enabling CCI to appoint various professional organisations for monitoring purposes.

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Agencies such as accounting firms, management consultancies, or professionals like chartered accountants and company secretaries can now be appointed by CCI. These agencies will oversee the implementation of orders under Sections 31, 48A, 48B, and other provisions of the Act. Section 31 deals with mergers and acquisitions, while Sections 48A and 48B relate to commitments and settlements.

Monitoring Compliance with Orders

The appointed agencies are tasked with informing CCI about any failure to implement or comply with its orders. This step is crucial for maintaining fair competition in the market. The regulator can appoint these agencies for various types of orders, including those concerning mergers and acquisitions.

Additionally, the revised regulations introduce a 180-day timeframe for issuing a final order after an interim order is made. This change aims to streamline processes and ensure timely decision-making.

Amendments Reflecting Stakeholder Concerns

Following amendments to the Competition Act in April 2023, CCI conducted a thorough review of its general regulations. Public consultations were held before finalising these changes. Anjali Malhotra from Nangia Andersen India noted that these amendments align with evolving standards and enhance CCI's procedures as per the Competition Amendment Act, 2023.

The amendments also clarify distinctions between interlocutory and miscellaneous applications. They provide clarity on engaging multiple representatives through a single authorisation letter. Malhotra highlighted that these changes balance stakeholder concerns with procedural efficiency while aligning with international best practices.

The recent updates to CCI's regulations aim to improve compliance monitoring and streamline processes. By appointing agencies to oversee order implementation, CCI seeks to ensure fair competition in the marketplace. These changes reflect a commitment to maintaining procedural efficiency and fairness in line with global standards.