The Indian market is rapidly transforming, with digital ecosystems, global transactions, and cross-sectoral integrations becoming the norm. Amidst this evolution, the Competition Commission of India (CCI) continues to play a pivotal role in ensuring that businesses operate fairly, innovation is not stifled, and consumers remain protected. With the enactment of the Competition (Amendment) Act, 2023, India’s competition law framework has undergone its most significant reform since 2009 — introducing new thresholds, faster timelines, and a sharper regulatory toolkit.
This article explains the role of the CCI and outlines how the latest amendments have reshaped its jurisdiction, enforcement powers, and procedures.
What is the Competition Commission of India?
The Competition Commission of India (CCI) is a statutory, quasi-judicial body established under the Competition Act, 2002, tasked with enforcing competition law in India. The Commission ensures that no enterprise or group distorts market competition through anti-competitive agreements, abuse of dominant position, or combinations (mergers/acquisitions) that lead to an appreciable adverse effect on competition (AAEC).
Following the 2023 Amendment, the CCI’s powers have expanded significantly — from regulating digital markets and imposing heavier penalties to enabling faster approvals for M&A transactions.
When Does the CCI’s Jurisdiction Arise?
The CCI’s jurisdiction arises primarily in the following three situations:
- Anti-Competitive Agreements (Section 3): These include:
- Horizontal agreements like price-fixing, bid-rigging, or market sharing among competitors.
- Vertical agreements involving exclusive supply/distribution, resale price maintenance, or tying arrangements.
The amendment now specifically includes hub-and-spoke cartels, even if the parties are not direct competitors — bringing many digital intermediaries and marketplaces under scrutiny.
- Abuse of Dominance (Section 4): Dominant players may not use their position to impose unfair conditions, limit production or supply, or deny market access. The 2023 Amendment clarifies that “relevant market” can now include combinations of product and service markets, reflecting modern business practices, especially in digital and tech sectors.
- Regulation of Combinations (Sections 5 & 6): Combinations that cross specified thresholds must be notified to the CCI. The 2023 Amendment introduces a new ‘deal value threshold’, bringing under CCI review any transaction where:
- The deal value exceeds ₹2,000 crore; and
- The target enterprise has “substantial business operations in India”.
This is especially relevant for M&A transactions involving digital startups or data-rich platforms, which may not meet the traditional asset/turnover criteria.
What Kind of Cases Does the CCI Handle?
The CCI handles a wide variety of competition law issues, including:
- Cartels and collusive bidding in traditional industries like cement, beer, pharmaceuticals, and government tenders.
- Abuse of market power by dominant enterprises in sectors such as telecom, real estate, and tech.
- Regulation of mergers and acquisitions (combinations) across industries — ensuring they do not hinder competition.
- Digital economy oversight, particularly where platforms act both as intermediaries and competitors.
With the 2023 amendment, the CCI is now better equipped to handle complex market structures, including multi-sided platforms, data monopolies, and killer acquisitions.
Who Can Approach the CCI?
The law permits any person, including individuals, businesses, consumer associations, and government bodies, to file an “information” under Section 19(1) regarding any alleged anti-competitive practice or abuse of dominance.
Additionally, the CCI may initiate inquiries suo motu based on media reports, sectoral analysis, or anonymous complaints. Under the revised law, the CCI has greater autonomy to begin ex-ante reviews, especially in sectors vulnerable to rapid digital disruption.
Procedure Followed by the CCI:
Here is a step-by-step overview of how proceedings before the CCI typically unfold:
- Filing of Information: A detailed information is submitted along with evidence and prescribed fees.
- Prima Facie Assessment: The Commission decides whether a prima facie case If not, it dismisses the case under Section 26(2). If yes, it orders an investigation under Section 26(1).
- Investigation by the Director General (DG): The DG conducts a fact-finding investigation, including searches, seizure of evidence, and examination of witnesses.
- Submission of DG Report and Hearing: Based on the DG’s findings, the Commission provides the report to the parties, invites replies, and conducts hearings before passing a final order.
- Final Order: The Commission may impose penalties, direct modification of conduct or agreements, or in rare cases, suggest division of the enterprise.
In combination cases, a new “Green Channel” mechanism was introduced earlier for automatic approval of non-overlapping transactions. Under the 2023 Amendment, the timeline for merger review has been shortened from 210 days to 150 calendar days, with a mandatory review period of 30 days (extendable) for completeness checks.
Timelines for Adjudication (Post-Amendment):
The Competition Amendment Act, 2023, aims to expedite case disposal and bring more clarity to timelines:
- Prima facie examination: 30 to 60 days
- DG investigation: 6 to 12 months (can extend)
- Hearings and final order: 6 to 10 months after DG report
- Total time for enforcement cases: ~12 to 24 months
- Combination (M&A) approvals: 150 days (reduced from 210)
The amendment also permits the CCI to settle or commit in certain cases of vertical restraints and abuse of dominance, allowing early closure upon admission of wrongdoing and compliance — a major shift towards efficient resolution.
Penalties and Powers of the CCI (Updated):
The CCI’s enhanced powers now include:
- Turnover-based penalties: Penalties may be based on global turnover — not just Indian turnover — in cases of anti-competitive conduct.
- Settlement and Commitment Mechanisms (New): Parties may settle or offer commitments to the CCI during the inquiry, avoiding full-scale investigations.
- Penalising false information: A penalty of ₹5 crore may be imposed for furnishing false or misleading information in merger cases.
- Expedited merger review: The CCI can now impose strict deadlines and penal consequences for delays in furnishing documents.
Key Impact Areas of the 2023 Amendment:
- Digital markets and e-commerce platforms are now explicitly within the regulatory ambit.
- Startups and emerging tech companies, even without large turnovers, may face scrutiny if deal value crosses ₹2,000 crore.
- Settlement and commitment mechanisms introduce flexibility and speed in enforcement.
- Faster merger clearances benefit both domestic and global M&A ecosystems.
- Cartel deterrence is enhanced with stricter leniency rules and global turnover-based penalties.
Conclusion:
The Competition Commission of India, bolstered by the 2023 Amendment, is now better prepared to meet the challenges of a fast-evolving, tech-driven economy. Whether you’re an investor, corporate executive, or policy advisor, understanding the new compliance landscape is essential.
From regulating digital dominance to enabling faster M&A clearances, the CCI is no longer a back-end regulator — it’s a strategic stakeholder in India’s economic governance.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. The content may not reflect the most current legal developments and is not guaranteed to be accurate, complete, or up-to-date. Readers should consult a qualified legal professional before taking any action based on the information provided. The authors and publishers disclaim any liability for any loss or damage incurred as a result of reliance on this article. This article does not create an attorney-client relationship.