The Government of India has notified the enforcement of clause (f) of Section 19 of the Competition (Amendment) Act, 2023, effective from 19th September 2024. This clause amends Section 26 of the Competition Act by adding sub-section (9). The new sub-section allows the Competition Commission of India (CCI) to either close an investigation or pass an order under Section 27 upon completing its inquiry. However, before issuing a final order, the CCI is required to issue a show-cause notice to the concerned parties, detailing the alleged violations. The notice will provide the parties an opportunity to respond and present their case before any decision is finalized. This amendment strengthens procedural fairness by ensuring that the parties involved are given a reasonable opportunity to be heard before the CCI takes action.
Extract of Clause clause (f) of section 19 of Competition (Amendment) Act, 2023
19. Amendment of section 26.
(f) after sub-section (8), the following sub-section shall be inserted, namely:—
“(9) Upon completion of the investigation or inquiry under sub-section (7) or sub-section (8), as the case may be, the Commission may pass an order closing the matter or pass an order under section 27, and send a copy of its order to the Central Government or the State Government or the statutory authority or the parties concerned, as the case may be:
Provided that before passing such order, the Commission shall issue a show-cause notice indicating the contraventions alleged to have been committed and such other details as may be specified by regulations and give a reasonable opportunity of being heard to the parties concerned.”.
Relevant Notification
MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 19th September, 2024
S.O. 4031(E).– In exercise of the powers conferred by sub-section (2) of section 1 of the Competition (Amendment) Act, 2023 (9 of 2023), the Central Government hereby appoints the 19th day of September, 2024 as the date on which the provisions of clause (f) of section 19 of the said Act shall come into force.
[F. No. Comp-05/4/2023-Comp-MCA (Part-1)]
MANOJ PANDEY, Addl. Secy.
