Price-sensitive data to be protected

Competition panel's draft norms allow confidentiality clause for firms.

While the government mulls over amending the competition law in light of the Supreme Court order, the Competition Commission of India (CCI) is ready with the final draft rules and regulations. These include safeguards for protecting India Inc's trade secrets and price sensitive information.

Businesses would be allowed to keep such data confidential on giving adequate reasons. They will also need to specify till when such confidentiality is required. They will have to submit a public version of the documents and another set with all the confidential information.

If the party is unwilling to make the documents public, despite the commission deciding that confidential treatment is unnecessary, then these documents will be returned.

The draft regulations incorporate suggestions made by the expert advisory committee late last year. According to an official, the regulations would be notified only after the government amends the competition law to include the changes suggested before the Supreme Court.

The new rules provide for interaction through a preliminary conference (to which the complainant could be called) to decide if there is any merit in the case. To facilitate exchanges, the conference will not be subjected to formal rules of procedures.

The new competition law has an in-built procedure for mutual agreement between the parties. They may request the commission to make a consent order, which the parties themselves would draft.

They can submit a draft consent order along with an impact statement explaining the circumstances, the relief stated in the consent order and the anticipated effects on competition of that relief. Before approving the consent order, the commission would consider any valid objection to it.

To speed up disposal of cases, complaints through e-mail will be allowed. Notice on parties too can be served through e-mail. A print-out of the transmission would be taken as a proof of service of the notice.

To keep proceedings time-bound, the regulations provide that not more than three adjournments be given in an enquiry, except in exceptional circumstances. The commission would pass interim order within seven days and the final order within 21 days after completion of the hearings.

The draft regulations provide that commission or the director-general may direct the summoning of the witnesses, production of any document and enforce the attendance of any person and examine him on oath.

New fair play rules

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• Businesses may be allowed to keep trade secrets and price-sensitive data confidential
• The new regulations provide for interaction through preliminary conference
• Built-in procedure for mutual agreement between parties. The parties may request the commission to make a consent order
• Notice on parties can be served through e-mail. A print-out would be taken as a proof of service of the notice.
• The commission would pass interim order within seven days and the final order within 21 days after completion of the hearings. Not more than three adjournments in an enquiry