The Competition Commission of India (CCI) introduced the (Settlement) Regulations in 2024, a landmark development in the landscape of competition law. Enacted under the amended Competition Act of 2002, these regulations aim to streamline the settlement mechanism, providing a structured framework for businesses facing inquiries.
The Competition Commission of India’s (Settlement) Regulations, 2024, marks a significant step towards creating a more efficient and transparent competition law framework. By addressing stakeholder concerns, incorporating global best practices, and ensuring flexibility, these regulations aim to foster fair competition while providing businesses with a structured and streamlined settlement mechanism.
General Statement
The Competition Commission of India (Settlement) Regulations, 2024
1. The Competition Act, 2002 (Act) was amended on April 11, 2023, vide the Competition (Amendment) Act, 2023 (Amendment Act). Among other things, the Amendment Act introduced Section 48A and 48C in the Act to create a settlement mechanism. Section 48A of the Act enables an enterprise against whom an inquiry under Section 26(1) of the Act is initiated for an alleged contravention of Section 3(4) or Section 4 of the Act, as the case may be, to apply for settlement before the CCI. Whereas Section 48C provides for revocation of the settlement orders issued by the Commission and the consequences of the same. The intent of creating a procedure for settlement is driven by the need to reduce litigation and to ensure quicker market correction.
2. Accordingly, the draft Competition Commission of India (Settlement) Regulations, 2023 (Settlement Regulations 2023) were proposed to lay out the procedure to be followed during settlement proceedings. The draft Settlement Regulations 2023 were placed on the website of CCI inviting written comments from the stakeholders from 23.08.2023 to 13.09.2023.
3. CCI received comments from 41 stakeholders within the stipulated period from various disciplines which included industry associations, legal fraternity, policy think-tanks, academia, CCI has carefully examined the comments received and in view of these comments, certain changes have been incorporated in the draft Settlement Regulations 2023. Accordingly, CCI has today notified the Competition Commission of India (Settlement) Regulations, 2024 (Settlement Regulations 2024).
4. In terms of Section 64A(b) of the Act, this general statement is being published to provide CCI’s response to the public comments.
5. The Settlement Regulations 2024 inter alia provide for the following:
(a) Form and contents of the application for settlement along with fee payable;
(b) Circumstances in which the settlement applications can be rejected by CCI;
(c) Period during which settlements may be offered;
(d) Manner in which CCI will invite objections and suggestions to the settlement terms;
(e) Nature and effect of the settlement order;
(f) Manner of determining Settlement Amount;
(g) Factors to be considered by CCI in assessing the settlement terms;
(h) Implementation and monitoring of the terms of the settlement order;
(i) Revocation of the settlement order and the consequences thereof, etc.
6. Considering the global nature of matters before CCI, a requirement has been included in the Settlement Regulations 2024 (e., regulation 3(1)(j)) to the effect that the applicants need to disclose details of other competition authorities which have examined or are currently examining the alleged contraventions. This requirement aims to provide CCI with a comprehensive understanding of alleged violations, enabling a broader perspective on the nature and extent of the issues. Such transparency enhances the efficacy of enforcement actions.
7. Some stakeholders have highlighted that it is unclear how instances of past/on-going violation, required to be disclosed as part of the settlement application, would have any role in addressing competitive harms in an ongoing inquiry. The CCI is of the view that while market dynamics may evolve, the requirement to disclose past and ongoing violations in settlement applications will play a crucial role in antitrust enforcement, ensuring that CCI can make well-informed decisions and tailor the remedies effectively.
8. Stakeholders have also suggested that the proposed timeline of 45 days for submitting settlement applications is insufficient and may need to be extended. However, CCI is of the view that 45 days period as provided in regulation 3(2) of the Settlement Regulations 2024 is sufficient for the parties to evaluate as to whether to file a settlement application. Firstly, CCI can also extend this period by another 30 days on demonstration of sufficient cause. Further, the regulation now provides that the time period of 45 days will start from the date of receipt of confidential version of the Investigation Report, if applicable, which would ensure sufficient time with the parties to examine the matter for offering settlement to the CCI.
9. Stakeholders have suggested that the period under regulation 4 for submitting a revised settlement application should be increased to 30 days. In this regard, it is noted that regulation 4(5)(c) required an applicant to submit a revised settlement application within a period of 15 days post market testing of the settlement proposal. Based on the suggestions by the stakeholders and considering that an applicant needs to analyse the objections/suggestions received on the settlement proposal during market testing for the purpose of revising the settlement application, the period has been extended from 15 to 30 days. Accordingly, necessary changes have been made in regulation 4(5)(c) of the Settlement Regulations 2024.
10. The draft Settlement Regulations 2023 provided that before rejecting a settlement application, CCI may grant an opportunity of being heard to the settlement applicant. In this regard, the stakeholders suggested that CCI should grant an unqualified right to be heard to the settlement applicant before rejecting such application. Considering that the rejection of an application could impact their substantive rights, regulation 4(13) of the Settlement Regulations 2024 now provides that CCI shall provide an opportunity of being heard before rejecting a settlement application. Further, certain additional grounds for rejection of settlement application have been provided under regulation 4(12) of the Settlement Regulations 2024.
11. Stakeholders also sought clarity on CCI’s ability to issue interim orders during settlement proceedings given that the inquiry would be in abeyance. In this regard, it is clarified that section 33 of the Act allows CCI to issue interim orders at any stage of the inquiry, e., until the issuance of a final order under section 27. In addition, Regulation 4(14) has been inserted to provide that CCI may issue interim and/or other directions to protect the interest of consumers and/or to maintain & protect competition in the market and require the settlement applicant to comply with the same within a specified time period for consideration of the Settlement Application.
12. Stakeholders had indicated that while the regulations specify that a settlement decision
for one party won’t impact proceedings against others in the same case, it lacks clarity on the repercussions of a successful appeal against CCI’s final order (under Section 27) by a party not utilizing the settlement mechanism on the settlement applicant. In this regard, it was recommended that the final regulations explicitly bind the applicant to settlement orders passed by CCI, preventing them from benefiting from a successful appeal. To address this, regulation 3(1)(k) and Schedule I have been inserted in the Settlement Regulations 2024 which require the applicants to submit specific undertakings and waivers. It has been further provided that an applicant would continue to be bound by such waivers even if the settlement application has been rejected.
13. Stakeholders also highlighted that the overall timeframe of 120 days as provided by the draft Settlement Regulations 2023 for settlement proceedings may be insufficient. Considering various steps involved in settlement proceedings and the timeframe prescribed for such steps, regulation 4(10) of the Settlement Regulations 2024 now provides that the entire settlement proceedings shall be concluded within 180 working days. CCI has retained powers to extend this period, if deemed appropriate, for reasons to be recorded in writing.
14. It was also highlighted that the timeline for completion of settlement proceedings should commence after a complete settlement application is submitted to CCI. Accordingly, necessary amendments have been made in regulation 4(10) of the Settlement Regulations 2024.
15. Stakeholders have sought transitional provisions to allow settlement applications in the ongoing cases which may otherwise miss the opportunity to avail the settlement procedure. CCI has examined the said request of the stakeholders and observes that transitional provisions would necessitate prescription of separate time limits for cases at different stages of inquiry process, which is not desirable. Providing a singular time limit for filing a settlement application would avoid any confusion and misinterpretation of the provision. Further, extending the benefit of settlements to the cases where the inquiry process post receipt of the Investigation Report is in its final stages is not appropriate.
16. Regulation 6 of the draft Settlement Regulations 2023 originally set a cap of up to 15% on settlement discounts, but stakeholders have argued it might not be enough incentive for settlement applications. After examining practices in various jurisdictions, including those of the Securities and Exchange Board of India, CCI concluded that the proposed range is adequate. However, to enhance certainty and transparency, instead of a variable discount of up to 15%, a flat settlement discount will be applied. Necessary change has been incorporated in regulation 6 of the Settlement Regulations 2024. Additionally, stakeholders suggested allowing settlement applicants to submit arguments regarding the settlement amount or mitigating factors. In this regard, it is noted that there is no bar on the settlement applicant to make submissions on the settlement amount or the mitigating factors, as part of its settlement application, thus no new provision is necessary.
17. Stakeholders also highlighted that fees for filing a settlement application may be too high for MSMEs and Start-ups. In view of the concerns expressed by the stakeholders, applicable fee has been reduced from (a) ₹ 5 lakh to ₹ 2.5 lakh in regulation 9(1)(a) e., in case the applicant has a total turnover of up to ₹ 50 crores in India; and (b) ₹ 15 lakh to ₹ 10 lakh in regulation 9(1)(b) i.e., in case the applicant has a total turnover exceeding ₹ 50 crores and up to ₹ 500 crores in India.
18. Stakeholders have highlighted few issues in respect of the appointment of third-party agencies to monitor implementation of settlement terms under regulation 9 of the draft Settlement Regulations 2023. In this regard, it is noted that the requirement of appointment of monitoring agencies is common to three different regulations settlements, commitment, and combination regulations. Therefore, it has been decided that a unified framework providing for engagement of a monitoring agency will be included in the CCI (General) Regulations, 2009. Accordingly, regulation 10 of the Settlement Regulations 2024 has been appropriately amended.
19. Regulation 11 of the draft Settlement Regulations 2023 provided for revocation of settlement orders in certain situations. Stakeholders have inter alia suggested that CCI should grant a right to be heard to the settlement applicant prior to such revocation. As recommended by the stakeholders, regulation 11 of the Settlement Regulations 2024 now prescribes the process to be followed for proceedings under section 48C of the Act including an opportunity to the applicant to present its case, determination of the ‘legal costs incurred’, recovery of such legal costs,
20. Further, in respect of such provisions related to revocation, stakeholders highlighted that the draft Settlement Regulations 2023 do not provide any opportunity for settlement applicants to seek modification of settlement order inter alia due to change in circumstances. In this regard, it may be noted that Section 48C of the Act provides that in case of material change in facts, the settlement order shall stand revoked and withdrawn. Therefore, CCI is not empowered to modify its orders in such cases.
21. In relation to regulation 12 of the draft Settlement Regulations 2023, the stakeholders highlighted that use of information provided by the settlement applicant despite withdrawal or rejection of the settlement application may disincentivise such applicants. In view of the concerns expressed by the stakeholders, the usage of information provided by the applicant has been restricted to cases where the settlement order has been revoked and withdrawn in terms of Section 48C of the Act. It has also been inter alia provided that where an application is rejected or withdrawn, CCI and the DG may use the information gathered from sources other than the applicant.
22. Earlier, regulation 13 of the draft Settlement Regulations 2023 provided that if the settlement application is made in respect of some of the alleged contraventions noted by the DG in its Investigation Report, the inquiry qua remaining contravention(s) shall continue. Certain stakeholders sought clarity on this aspect. Based on the comments received from stakeholders, regulation 13 of the draft Settlement Regulations 2023 has been deleted and regulation 3(5)(a) has been inserted to provide that a settlement application should cover all the contraventions found by the DG.
23. Stakeholders also highlighted that the draft Settlement Regulations 2023 do not cast an express obligation on CCI to maintain confidentiality nor provide a mechanism for a settlement applicant to request CCI to maintain confidentiality over the settlement application. In this regard, regulation 13 has now been inserted in the Settlement Regulations 2024 stating that confidentiality requests will be governed by the extant provisions of the CCI (General) Regulations and the Act dealing with confidentiality.
24. The stakeholders also highlighted certain issues relating to inspection and certified copies of documents submitted during settlement proceedings. To provide necessary clarity, regulation 14 has been inserted in the Settlement Regulations 2024 stating that inspection and certified copies of documents submitted during settlement proceedings may be granted only to the Informant and the Settlement Applicant. Further, access to these documents would not be available to any other party viz. third parties, other opposite parties who are not part of the settlement proceedings, etc. Furthermore, it has also been clarified that access to comments received under regulation 5 shall be allowed only after expiry of the 21 (twenty-one) days period mentioned therein.
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THE COMPETITION COMMISSION OF INDIA
THE COMPETITION COMMISSION OF INDIA (SETTLEMENT) REGULATIONS, 2024
Notification No. 04 of 2024 | Dated : 6th March, 2024
No. CCI/Reg-S.R./2024.—In exercise of the powers conferred by section 64 read with section 48A of the Competition Act, 2002 (12 of 2003), the Competition Commission of India hereby makes the following regulations to specify the procedure for filing of settlement applications and for conducting the settlement proceedings and matters connected therewith or incidental thereto, namely:-
1. Short title and commencement. –
(1) These regulations may be called the Competition Commission of India (Settlement) Regulations, 2024.
(2) They shall come into force on the date of their publication in the Official Gazette.
Definitions. –
(1) In these regulations, unless the context otherwise requires:
(a) “Act” means the Competition Act, 2002 (12 of 2003);
(b) “Commission” means the Competition Commission of India established under sub-section (1) of section 7 of the Act;
(c) “Director General” means the Director General as defined in clause (g) of section 2 of the Act;
(d) “Penalty Guidelines” means guidelines published by the Commission under sub-section (3) of section 64B of the Act;
(e) “Settlement Amount” means the amount determined by the Commission under regulation 6 of these regulations;
(f) “Settlement Applicant” means any enterprise, as defined in clause (h) of section 2 of the Act, against whom any inquiry has been initiated under sub-section (1) of section 26 of the Act for alleged contraventions of sub-section (4) of section 3 or section 4 of the Act, and submits an application for settlement of proceedings initiated for the alleged contraventions to the Commission under these regulations;
(g) “Settlement Application” means an application submitted by a Settlement Applicant to the Commission under these regulations for settlement of proceedings initiated for the alleged contraventions of sub-section (4) of section 3 or section 4 of the Act.
(2) Words and expressions used but not defined in these regulations shall have the same meanings as assigned to them in the Act or in the regulations framed thereunder or in the Companies Act, 2013 (18 of 2013), as the case may be.
3. Application for settlement. –
(1) A Settlement Applicant may make a Settlement Application to the Commission in writing, accompanied by such fee as provided under sub-regulation (1) of regulation 9, containing the information as specified below:
a) name, legal status (company or firm or LLP or trust, etc.), registration number (if applicable), contact details including complete registered address, principal business address (with area code, city and country), mobile/ telephone number, email and website address (if any) of the Settlement Applicant.
b) name of the authorised representative(s) of the Settlement Applicant and their contact details including complete business address, telephone number and email.
c) proof of payment of fees to the Commission under regulation 9.
d) details of the findings of the Director General in relation to the Settlement Applicant in the investigation report received under sub-section (4) of section 26 of the Act.
e) full and true disclosure of facts in respect of the alleged contraventions and the findings of the Director General.
f) details of the proposal for settlement including as to how the same addresses the alleged contraventions, competition concerns and the manner of implementation and monitoring thereof.
g) whether the Settlement Applicant, has previously been found to have contravened any provision of the Act or whether any proceeding against the Settlement Applicant is pending for any alleged violation of the provisions of the Act or whether the Settlement Applicant has in the past made any settlement or commitment application(s). If so, the details thereof.
h) details of nature, gravity and impact of the alleged contraventions and the duration of the enterprise’s involvement in the alleged contraventions.
i) a summary, not containing any confidential information, comprising of prima facie opinion of the Commission expressed in the order issued under sub-section (1) of section 26 of the Act, findings of the Director General in the investigation report received under sub-section (4) of section 26 of the Act along with details of the competition concerns, alleged contraventions, duly capturing settlement proposal offered by the Settlement Applicant and how they address the competition concerns.
j) details of other competition authorities, fora or courts, if any, which have examined or are currently examining the alleged contraventions including those where the Settlement Applicant has filed commitment and / or settlement applications.
k) undertakings and waivers as per Schedule I.
l) any other information that may assist the Commission in determining the terms of the settlement and the Settlement Amount having due regard to the factors specified under regulation 8.
(2) The Settlement Application under sub-regulation (1) may be submitted after the receipt of the report of the Director General or confidential version thereof, if applicable, by the Settlement Applicant under sub-section (4) of section 26 of the Act.
Provided that a Settlement Application shall not be entertained by the Commission if it is made after expiry of 45 (forty five) days from the receipt of report of the Director General or confidential version thereof, if applicable, by the Settlement Applicant.
Provided further that the Commission may entertain a Settlement Application after the period specified above, if the Settlement Application is received within a further period of 30 (thirty) days and the Commission is satisfied that there had been sufficient cause for not filing the same within the specified period after recording reasons for condoning such delay.
(3) Where Settlement Application is incomplete in any respect or does not conform to the requirements of these regulations, the Settlement Applicant may be asked to remove such defect(s) or furnish the required information including document(s). The Settlement Applicant shall rectify such defects or furnish the required information including document(s) within 10 (ten) working days of the receipt of communication or such other period as may be specified by the Commission, failing which the Settlement Application may be treated as invalid.
(4) A Settlement Application may be withdrawn by the Settlement Applicant at any time prior to the passing of an order by the Commission under regulation 4.
(5) No application for settlement of any proceedings shall be considered,
(a) if the Settlement Application does not cover all the contraventions found by the Director General in its investigation report under sub-section (4) of section 26 of the Act.
(b) if any amount due under the Act is liable for recovery from the Settlement Applicant.
4. Consideration of proposal for settlement.-
(1) The Settlement Application complete in all respects in terms of regulation 3 shall be placed for consideration before the Commission in its ordinary meeting within 7 (seven) working days of receipt thereof.
(2) If the Commission is prima facie not satisfied with the settlement proposal offered by the Settlement Applicant, it shall communicate to the Settlement Applicant the reasons for the same and call upon the Settlement Applicant to furnish, within 15 (fifteen) working days of the receipt of the said communication, a revised Settlement Application.
(3) When the Settlement Application complete in all respects is placed for consideration before the Commission under sub-regulation (1) above, the inquiry against the Settlement Applicant shall remain in abeyance till final decision on the Settlement Application or till such time, as may be decided by the Commission.
(4) While considering the proposal for settlement, the Commission shall invite objections and suggestions in terms of regulation 5.
(5) After consideration of the nature, gravity and impact of the alleged contraventions, the proposal for settlement submitted by the Settlement Applicant and the comments, objections, or suggestions received under regulation 5,
a) the Commission may pass an order in terms of sub-section (3) of section 48A of the Act agreeing to the proposal for settlement as contained in the Settlement Application filed under sub-regulation (1) of regulation 3 or the revised Settlement Application filed under sub-regulation (2) above, as the case may be, subject to such other terms relating to manner of implementation of settlement and monitoring and close the proceedings against the Settlement Applicant forthwith.
b) if the Commission is of the opinion that the Settlement Application filed under sub-regulation (1) of regulation 3 or the revised Settlement Application filed under sub-regulation (2) above, as the case may be, are not appropriate in the circumstances, it shall by order passed in terms of sub-section (5) of section 48A of the Act, reject the Settlement Application and proceed with its inquiry under section 26 of the Act.
c) if the Commission is not satisfied with the Settlement Application, it shall within 15 (fifteen) working days after the expiry of period specified in regulation 5, communicate to the Settlement Applicant the reasons for the same and call upon the Settlement Applicant to furnish, within 30 (thirty) days of the receipt of the said communication, a revised Settlement Application.
d) if the Commission after considering the revised Settlement Application, filed under clause (c) of this sub-regulation (5), agrees with the same, it shall pass an order in terms of sub-section (3) of section 48A of the Act agreeing to the proposal for settlement, subject to such other terms relating to manner of implementation of settlement and monitoring and close the proceedings against the Settlement Applicant forthwith.
e) if the Commission after considering the revised Settlement Application, filed under clause (c) of this sub-regulation (5), is not satisfied with the same, it shall by an order passed in terms of sub-section (5) of section 48A of the Act, reject the revised Settlement Application and proceed with its inquiry under section 26 of the Act.
(6) In case the Settlement Applicant fails to submit the revised Settlement Application within the time period specified in sub-regulation (2) and clause (c) of sub-regulation (5) above, or fails to provide clarification, information, or data as sought under sub-regulation (11), the Commission shall by an order passed in terms of sub-section (5) of section 48A of the Act reject the Settlement Application and proceed with its inquiry under section 26 of the Act.
(7) The Commission before passing an order in terms of sub-section (3) of section 48A of the Act shall communicate to the Settlement Applicant, the Settlement Amount computed in terms of regulation 6 and the Settlement Applicant shall communicate its acceptance of the same within 15 (fifteen) days of receipt of such communication. The Settlement Amount computed and communicated to the Settlement Applicant shall be final and any application seeking revision of the same shall not be entertained by the Commission.
(8) The Settlement Applicant shall pay the Settlement Amount within a period of 30 (thirty) days from the date of acceptance thereof, whereupon the Commission shall pass an order in terms of sub-section (3) of section 48A of the Act.
(9) If the Settlement Applicant fails to communicate its acceptance of the Settlement Amount within the time period prescribed in sub-regulation (7) or fails to pay the Settlement Amount within the time period prescribed in sub-regulation (8), the Commission shall by an order passed in terms of sub-section (5) of section 48A of the Act, reject the Settlement Application and proceed with its inquiry under section 26 of the Act.
(10) The entire settlement proceedings shall be concluded within 180 (one hundred and eighty) working days of the receipt of the Settlement Application complete in all respect in terms of regulation 3, failing which the inquiry under section 26 of the Act against the Settlement Applicant shall stand resumed.
Provided that the Commission may extend the said period of 180 (one hundred and eighty) working days by such further period as may be specified, if deemed appropriate, for reasons to be recorded in writing.
(11) The Commission may seek clarification, information, or data from the Settlement Applicant, as deemed appropriate, which shall be provided by the Settlement Applicant within the time specified by the Commission.
(12) Notwithstanding the above provisions, a Settlement Application may also be rejected at any time on the following grounds:
a. where the Settlement Applicant refuses to receive or respond to the communications sent by the Commission.
b. where the Settlement Applicant violates in any manner or does not abide by the undertaking and waivers given as per Schedule-I.
(13) The Commission shall before passing an order rejecting a Settlement Application under clause (b) and (e) of sub-regulation (5), sub-regulation (6) and sub-regulation (12) above, grant the Settlement Applicant an opportunity of being heard.
(14) During the pendency of a Settlement Application, the Commission may issue interim and/or other directions to protect the interest of consumers and/or to maintain & protect competition in the market and require the Settlement Applicant to comply with the same within a specified time period for consideration of the Settlement Application.
(15) The rejection under this regulation shall be communicated to the Settlement Applicant:
Provided that the Settlement Applicant shall continue to be bound by undertakings and waivers given as per Schedule I.
5. Invitation of objections and suggestions on proposal for settlement. –
(1) While considering the proposal for settlement, the Commission shall provide an opportunity to the party concerned, the Director General, or any other party to submit their comments, objections, or suggestions, if any, within 21 (twenty one) days. For the said purpose, the Commission would share a summary, not containing any confidential information, comprising of prima facie opinion of the Commission expressed in the order issued under sub-section (1) of section 26 of the Act, findings of the Director General in the investigation report received under sub-section (4) of section 26 of the Act along with details of the competition concerns, alleged contraventions, duly capturing settlement proposal offered by the Settlement Applicant, how they address the competition concerns and any other detail as deemed fit.
(2) The comments, objections and suggestions filed by the concerned parties shall contain the following details:
a) name and contact details including address, telephone number, email of the concerned party and its authorised representative(s), if any
b) statement of comments, objections and suggestions duly authenticated by the authorised representative and supported by relevant documents.
c) a summary of the comments, objections and suggestions not running into more than four pages.
d) any other information that may assist the Commission in determining the terms of the settlement.
6. Manner of determining the Settlement Amount. –
(1) For the purpose of determining Settlement Amount, the Commission would compute base amount which could extend up to maximum amount of penalty that would otherwise have been leviable under section 27(b) of the Act.
(2) For the purpose of determining base amount as referred to in sub-regulation (1), the Commission shall be guided by the Penalty Guidelines.
(3) The Settlement Amount would be determined by applying a settlement discount of 15% to the base amount computed under sub-regulation (1) and (2).
7. Nature and effect of settlement order. –
(1) Without prejudice to provisions of section 53N of the Act, the order passed by the Commission agreeing to the proposal for settlement shall not be construed as a finding of contravention by the Commission against the Settlement Applicant.
(2) Filing of Settlement Application or issuance of settlement order by the Commission shall have no bearing on the inquiry under section 26 of the Act in relation to the alleged contraventions, in respect of the other parties to the inquiry who are not part of the settlement proceedings.
(3) The settlement order shall be final and binding upon the Settlement Applicant.
8. Assessment of the terms of the settlement. –
The Commission shall while considering the nature, gravity, impact of the alleged contraventions and for the purpose of assessing the Settlement Application, have due regard to all or any of the following factors, including:
(a) the nature of conduct, its type, duration and extent of the alleged contraventions;
(b) whether the settlement terms address the alleged contraventions and the same can be implemented effectively and expeditiously besides being easy to monitor;
(c) whether the terms of settlement make the markets more contestable;
(d) procedural efficiencies, self-executing terms and early correction of market distortions;
(e) whether the Settlement Applicant, has previously been found to have contravened any provision of the Act or any investigation or inquiry is pending against the Settlement Applicant in respect of any alleged violation of the provisions of the Act or whether the Settlement Applicant has previously made any settlement or commitment application(s);
(f) whether the Settlement Applicant has already modified its conduct and policies which have been found to be in prima facie violation of the Act by the Commission or steps taken by the Settlement Applicant to minimize future violations or lapses;
(g) any other factor as may be deemed appropriate by the Commission in the facts and circumstances of the case.
9. Fee under sub-section (1) of section 48A of the Act. –
1. Every application received under sub-section (1) of section 48A of the Act by the Commission shall be accompanied with proof of payment of non-refundable fees as under:
(a) Rs. 2,50,000 (rupees two lakh fifty thousand) only in case the Settlement Applicant has a total turnover of up to Rs. 50,00,00,000 (rupees fifty crores) in India in the preceding financial year, or
(b) Rs. 10,00,000 (rupees ten lakh) only in case the Settlement Applicant has total turnover exceeding Rs. 50,00,00,000 (rupees fifty crores) and up to Rs. 500,00,00,000 (rupees five hundred crores) in India in the preceding financial year.
(c) Rs. 50,00,000 (rupees fifty lakh) only in case the Settlement Applicant has total turnover exceeding Rs. 500,00,00,000 (rupees five hundred crores) in India in the preceding year.
2. The fee can be paid either by tendering demand draft or pay order or banker’s cheque, payable in favour of Competition Commission of India (Competition Fund), New Delhi or through Electronic Clearance Service (ECS) by direct remittance to the Competition Commission of India (Competition Fund), Account No. 1988002100187687 with “Punjab National Bank, Bhikaji Cama Place, New Delhi- 110066”.
10. Implementation and monitoring of settlement order. –
Where the Commission is of the opinion that the implementation of the Settlement Order needs monitoring, it may appoint agencies to oversee such implementation in terms of the Competition Commission of India (General) Regulations, 2009 and on such terms and conditions as may be specified by the Commission.
11. Revocation of the Settlement Order. –
(1) If a Settlement Applicant fails to comply with the order passed by the Commission under section 48A of the Act or it comes to the notice of the Commission that the Settlement Applicant has not made full and true disclosure during the settlement proceedings or there has been a material change in the facts, the order passed under section 48A of the Act shall stand revoked and withdrawn.
Provided that before making an opinion in this regard, the Commission shall give an opportunity to the Settlement Applicant to show-cause, within a period of 15 working days from the date of receipt of the show-cause notice, as to why the Commission should not form an opinion that the Settlement Applicant has failed to comply with the order passed by the Commission under section 48A of the Act or the Settlement Applicant has failed to make full and true disclosure during the settlement proceedings or there has been a material change in the facts, as the case may be.
(2) Where the settlement order stands revoked and withdrawn as per sub-regulation (1) above, the Settlement Applicant shall be liable to pay legal costs incurred by the Commission, as may be determined by the Commission, subject to a maximum of rupees one crore which shall be paid in terms of sub-regulation (2) of regulation 9.
(3) Such legal costs imposed upon a Settlement Applicant shall be recoverable in the same manner under section 39 of the Act read with the Competition Commission of India (Manner of Recovery of Monetary Penalty) Regulations, 2011, as has been prescribed for recovery of penalty imposed under the Act.
(4) Further, where the settlement order stands revoked and withdrawn as per sub-regulation (1) above, the Commission may also restore or initiate against the Settlement Applicant, inquiry or investigation in respect of which the order under section 48A was passed.
12. Power to use information. –
(1) Where the Commission has revoked and withdrawn its settlement order in terms of section 48C of the Act read with regulation 11, the Commission and the Director General may rely upon the information and document submitted by the Settlement Applicant in the proceedings under the Act.
(2) Where a Settlement Application is rejected or withdrawn, the Commission and the Director General may use the information gathered from sources other than Settlement Applicant in the proceedings under the Act.
(3) The Commission may, subject to the provisions of regulation 35 of the Competition Commission of India (General) Regulations, 2009 read with section 57 of the Act, use the information submitted by the Settlement Applicant against other parties to the inquiry who are not part of the settlement proceedings.
(4) The facts established against the Settlement Applicant or admitted in any ongoing or concluded proceedings in India or outside India, with respect to the same cause of action, under any law, shall be deemed to be admitted by the Settlement Applicant in respect of the proceedings proposed to be closed under these regulations.
13. Request for Confidentiality. –
1. If any party request confidentiality of information or document(s) submitted during settlement proceedings, such request may be filed as per the procedure laid down in the Competition Commission of India (General) Regulations, 2009, as amended from time to time.
2. Such request for confidentiality shall be duly considered in accordance with the provisions laid down in the Competition Commission of India (General) Regulations, 2009, as amended from time to time read with section 57 of the Act.
14. Inspection and certified copies of documents. –
1. Notwithstanding anything contained to the contrary in regulation 37 and regulation 50 of the Competition Commission of India (General) Regulations, 2009, inspection and certified copies of documents submitted during settlement proceedings may be granted only to the Informant and the Settlement Applicant.
Provided that the inspection and certified copies of the confidential version of such documents shall be granted as per provisions of regulation 35 of the Competition Commission of India (General) Regulations, 2009.
2. Inspection and certified copies of comments received under regulation 5 shall be allowed only after expiry of the period of 21 (twenty-one) days mentioned therein.
15. Powers to determine procedure in certain circumstances. –
In a situation not provided for in these regulations, the Commission may, for reasons to be recorded in writing, determine the procedure in a particular case.
16. Power to remove difficulties. –
In the matter of implementation of these regulations, if any doubt or difficulty arises, the Commission shall have the powers to issue clarifications and specify procedures through circulars or guidelines and the decision of the Commission thereon shall be binding.
SCHEDULE-I
Undertakings and Waivers
I/We,…………………….., the Settlement Applicant(s) herein, as a condition for making the enclosed application to the Commission for examining and consideration of the application, hereby declare that I/we agree and undertake that:
1. The Settlement Applicant admits the jurisdiction and right of the Competition Commission of India (the Commission) to initiate proceedings in respect of the alleged contraventions under the Competition Act, 2002.
2. The Commission may enforce any claim(s) against the Settlement Applicant arising from or in relation to any violation of the settlement order passed pursuant to this application.
3. The Settlement Applicant waives its right of taking any legal proceedings against the Commission concerning any of the issues covered in the settlement order that may be passed.
4. The Settlement Applicant further waives the following:
a) the findings of fact and conclusions of law;
b) appeal or review before the National Company Law Appellate Tribunal or other courts;
c) any plea of limitation or laches for initiating or restoring of the proceedings, if the Settlement Applicant violates the settlement order.
(Signature of the Settlement Applicant with stamp and seal of the body corporate)
Before me.
Notary.
ANUPAMA ANAND, Secy.
[ADVT.-III/4/Exty./803/2023-24]
