In an order published on August 23, 2021, the Competition Commission of India (CCI) penalised Maruti Suzuki India Limited (MSIL) to the tune of INR 2 billion (approx. USD 27 million) for restricting and controlling the discounts offered by its dealers to the end consumers. Such conduct by India’s leading passenger vehicle manufacturer was held to be anti-competitive resale price maintenance (RPM), and thus violative of the provisions of the Competition Act, 2002 (as amended) (Competition Act).
Continue Reading Penalty for penalty: CCI penalises Maruti Suzuki for indulging in resale price maintenance
The role of competition law authorities is to ensure that markets work in a manner that allows the process of competition to drive market outcomes. One way of doing this is by using enforcement measures – taking action against enterprises that are hindering the process of competition by entering into anti-competitive agreements or abusing their position of dominance. However, that is not the only way.
Competition law authorities can also contribute to the enhancement of competition by stepping up their advocacy measures. While the Competition Commission of India (CCI) has consistently been using advocacy measures as part of its functions, recent measures highlight how the CCI’s advocacy measures are becoming more nuanced because of its institutional experience in enforcing competition laws.
Continue Reading CCI Steps up Advocacy Measures for Healthcare: Policy Note on ‘Making Markets Work for Affordable Healthcare’
The Competition Commission of India (CCI) has, for the sixth time since the introduction of the merger control regime in India, proposed amendments (Proposed Amendments) to the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011 (Combination Regulations).
The Combination Regulations are the principal regulations governing the merger notification process in India. Some of the changes proposed by the CCI seem to be aimed at addressing issues that have arisen in the implementation of the merger control regime over the past couple of years whereas others seek to incorporate procedures that are already being followed by the CCI in practice. The changes, currently in draft form while the CCI seeks stakeholder views , are highlighted in brief below.
Continue Reading CCI Proposes Amendments to Combination Regulations
In a notification dated July 4, 2018, the Ministry of Corporate Affairs (MCA) has granted an additional three year extension to the Vessel Sharing Agreements Exemption (VSA Exemption) in the liner shipping industry. This exempts VSAs from scrutiny under Section 3 (i.e., anti-competitive agreements) of the Competition Act, 2002 (as amended) (Act). This extension, which is a furtherance of international best practice, has come as a source of relief to the liner shipping industry, given that the last extension of the VSA exemption expired on June 19, 2018. The expiry of the previous exemption had led to speculation regarding the status and future of the VSA exemption.
Continue Reading Extension of Competition Law Exemption to Vessel Sharing Agreements