 "CCI seeks inputs on draft to offer incentives to cos for info on cartels")
Competition Commission has sought stakeholders' comments on draft leniency plus regulations that will offer incentives to companies already under probe for cartelisation for providing information about other cartels.
As incentives, the entity giving information could get an additional reduction in monetary fine could be as much as 30 per cent with regard to the first cartel besides a reduction in penalty of up to 100 per cent in respect of newly disclosed cartels.
The framework is designed to create an additional incentive for companies to cooperate with antitrust authorities in identifying and addressing cartel activities, ultimately promoting fair competition.
The Competition (Amendment) Act, 2023 has introduced 'lesser penalty plus' and withdrawal of 'lesser penalty'/'lesser penalty plus' applications in the existing framework, to incentivise an existing LP applicant in respect of the first cartel to give full, true and vital disclosures about a second cartel unknown to the competition watchdog.
"The benefit for the applicant is that it will be eligible to receive an additional reduction in penalty for the first cartel besides reduction in penalty as per priority status in respect of first cartel, subject to fulfilment of prescribed terms and conditions," the Competition Commission of India (CCI) said.
The new norms will repeal and replace the Competition Commission of India (Lesser Penalty) Regulations, 2009. The competition watchdog has invited stakeholders to submit comments by November 6.
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CCI will also have the discretion with regard to reduction in monetary penalty based on factors, including evidence already in possession of the commission, quality of the information provided by the applicant, and the stage at which the applicant comes forward with the disclosure etc.
The identity of the applicant and the information furnished were not disclosed by the CCI or the director general and shall be treated as confidential, as per the draft regulations.