Competition Commission introduces independent agencies to monitor compliance with orders

A security guard stands outside the Competition Commission of India (CCI) headquarters in New Delhi. File. | Photo source: Reuters

The Competition Commission can now appoint agencies to monitor the implementation of its orders, notifying them of amended regulations.

This decision is a response to concerns raised by some entities regarding failure to comply with certain orders of the regulatory body responsible for ensuring fair competition in the market.

The Competition Commission of India General Regulations, 2024, was notified on Tuesday.

Now agencies can be appointed by the CCI to monitor the execution of its orders. Agencies can be accounting firms, management consultancies or any other professional body or chartered accountants, company secretaries or cost accountants.

“If the Commission considers that the implementation of its orders made under section 31, section 48A or section 48B or any other provisions of the Act and regulations made thereunder requires monitoring, it may designate agencies to supervise such implementation, on such terms and conditions as the Commission may consider appropriate,” according to the new rules.

Sections 48A and 48B deal with obligations and settlements respectively, and section 31 deals with merger and acquisition orders.

The Agency would be obliged, among other things, to inform the CCI of any failure to implement or comply with its orders.

The regulator may designate agencies for this purpose in relation to various types of orders, including those relating to mergers and acquisitions.

Other changes were also introduced to the regulations, including the introduction of a 180-day period from the date of issuance of an interim order to the issuance of a final order.

Following the changes to the Competition Act in April 2023, the CCI conducted a comprehensive review of its general rules. A public consultation was also conducted prior to the change in the rules.