Competition Commission of India
India
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Competition Commission of India

Competition Commission of India

India

India: from the enforcer

Address: 9th Floor, Office Block – 1, Kidwai Nagar (East), Opposite Ring Road, New Delhi 110023, India
Tel: +91 11 2466 4100
Email: [email protected]
Web: www.cci.gov.in

Contacts

Ashok Kumar Gupta
Chairperson
Tel: +91 11 20815001/5011
Fax: +91 11 20815021
Email: [email protected]

Jyoti Jindgar
Secretary (Incharge)
Tel: +91 11 20815009
Fax: +91 11 20815019
Email: [email protected]

Questions and answers

1. How long is the head of agency’s term of office?

The term of office for the Chairperson and Members of the Competition Commission of India (CCI) is five years, with an age cap of 65 years.

2. When is he or she due for reappointment?

The Chairperson and members will hold their positions for five years from the dates that they entered into office or until they reach the age of 65, whichever is earlier, and subject to the provisions relating to their resignations or removals under the Competition Act 2002 (the Act). The present Chairperson will hold office until 25 October 2022. The Chairperson and other Members are eligible for reappointment.

3. Which posts within the organisation are political appointments?

There are no posts in CCI for political appointment. The Chairperson and members are appointed by the government from a panel of names recommended by a selection committee headed by the Honourable Chief Justice of India or his or her nominee. The appointments are subject to their satisfying the qualifications and experience stipulated in the Act.

4. What is the agency’s annual budget?

The budget for 2019-20 is 44.50 crore rupees.

5. How many staff are employed by the agency?

340 staff are working in CCI.

6. To whom does the head of the agency report?

CCI is an independent, statutory authority established by the Law of Parliament. CCI provides an Annual Report giving a full account of its activities to the government, which is placed before Parliament.

7. Do any industry-specific regulators have competition powers?

No. Industry-specific regulators do not have any powers akin to CCI. Some of industry-specific regulators deal with the competition issues in their regulatory effort.

8. Do politicians have any right to overrule or disregard the decisions of the authority?

No.

9. Does the law allow non-competition aims to be considered when taking decisions?

Non-competition aims are not a consideration in the proceedings before CCI. However, the Government has been conferred with the power under section 54 of the Act to grant exemption in the following instances:

  • to class of enterprises, if exemption is necessary to them in the interest of security of the state or public interest;
  • any practice or agreement in accordance with any obligation assumed by India under an international treaty, agreement or convention; and
  • any enterprise performing sovereign functions.

10. Which body hears appeals against the agency’s decisions? Is there any form of judicial review beyond that mentioned above? If so, which body conducts this?

Appeals against an order of CCI are filed before National Company Law Appellate Tribunal (NCLAT). NCLAT orders can be appealed before the Supreme Court of India.

11. Has the authority ever blocked a proposed merger?

Under the provisions of the Act, the CCI can approve a combination with or without modification or direct that a combination shall not take effect.

The CCI has not dealt with any case where it was considered necessary to block the combination. However, the CCI has approved certain combinations subject to modifications that were required to address competition concerns.

12. Has the authority ever imposed conditions on a proposed merger?

I. Combination Registration No. C-2014/05/170
The CCI approved the proposed combination between Sun Pharmaceutical Industries Limited and Ranbaxy Laboratories Limited subject to the parties to the combination, inter alia, carrying out the divestiture of their products relating to seven relevant markets for formulations. The CCI also directed that the proposed combination shall not take effect before the parties have carried out the divestiture of the products as directed by the CCI.

II. Combination Registration No. C-2014/07/190
The CCI approved the proposed combination between Holcim Limited and Lafarge SA subject to the parties to the combination, inter alia, carrying out divestiture of the assets of Lafarge.

III. Combination Registration No. C-2015/07/288
The CCI approved the proposed combination between PVR and DLF subject to the conditions that PVR would not acquire seven cinema screens of DLF located in the market of South Delhi where PVR was already doing the same business and competing with DLF.

IV. Combination Registration No. C-2016/05/400
The CCI approved the proposed combination between Dow Chemical Company and E.I.du Pont de Nemours and Company subject to carrying out modification in two markets, namely Fungicide for grapes which target the fungus ‘Ascomycota’ and MAH grafted polyethylene (low graft). The modifications were, inter alia, related to certain divestitures.

V. Combination Registration No. C-2016/10/443
The CCI approved the proposed combination between Agrium Inc and Potash Corp subject to the parties in the combination, inter alia, carrying out divestiture of the minority shareholders of Potash Corp in three companies: Arab Potash Company, Sociedad Quimica y Minera and Israel Chemicals Limited.

VI. Combination Registration No. C-2017/08/523
The CCI approved the proposed combination between Bayer Aktiengesellschaft and Monsanto Company subject to the parties in the combination carrying out divestitures of select businesses and complying with certain behavioural commitments.

VII. Combination Registration No. C-2018/01/545
The CCI approved the proposed combination between Linde Aktiengesellschaft and Praxair, Inc subject to the parties to the combination carrying out divestitures of select businesses.

VIII. Combination Registration No. C-2018/07/586
The CCI approved the proposed combination between Schneider Electric India Private Limited and MacRitchie Investments Pte Ltd Inc subject to the parties to the combination complying with certain behavioural commitments.

CCI has approved total 22 (Twenty Two) number of cases with modifications. These cases can be accessed at https://www.cci.gov.in/node/5333

13. Has the authority conducted a Phase II investigation in any of its merger filling?

The CCI has called for public comments under sub-section 2 of section 29 of the Act in the following combination notifications:

  • Sun Pharmaceutical Industries Limited/Ranbaxy Laboratories Limited (Combination Registration No. C-2014/05/170);
  • Holcim Limited/Lafarge SA (Combination Registration No. C-2014/07/190);
  • PVR Limited/DT Cinema (Combination Registration No. C-2015/07/288);
  • Dow/DuPont (Registration No.C-2016/05/400;
  • Agrium/Potash (Combination Registration No.C-2016/10/443);
  • Bayer Aktiengesellschaft/Monsanto Company (Combination Registration No. C- 2017/08/523);
  • Linde Aktiengesellschaft/Praxair, Inc (Combination Registration No. C-2018/01/545); and
  • Schneider Electric India Private Limited/MacRitchie Investments Pte Ltd (Combination Registration No. C-2018/07/586).

14. Has the authority ever pursued a company based outside your jurisdiction for a cartel offence?

CCI has pursued companies based outside the jurisdiction for cartel offences.

15. Do you operate a leniency programme? Whom should potential applicants contact?

CCI operates a leniency programme in terms of section 46 of the Act and the Regulations made thereunder. Leniency applicants should contact the Secretary of CCI.

16. Is there a criminal enforcement track? If so, who is responsible for it?

Not applicable.

17. Are there any plans to reform the competition law?

The Ministry of Corporate Affairs constituted competition Law Review Committee (CLRC) on 1 October 2018 and it has submitted its report to the Government of India on 26 July 2019. CLRC Report is currently under perusal of the Government. Government has taken further steps after receipt of the Report as Ministry of Corporate Affairs had invited for public comments on the draft Competition. (Amendment) Bill, 2020 vide a public notice, from the stakeholders.

18. When did the last review of the law occur?

In 2018.

19. Do you have a separate economics team? If so please give details.

CCI has deployed officers from the field of economics in various divisions as per the requirement. DG Office also has dedicated economists among its staff. CCI also has a separate Economics Division for providing advice in antitrust and merger matters. Further, the Economics Division assists the Commission in Market Study and Research.

20. Is there a criminal enforcement track? If so, who is responsible for it?

There is no criminal enforcement under the Act, except for contravention or non-compliance of the CCI’s order. In such cases, CCI may file a complaint before the Chief Metropolitan Magistrate.

21. Has the authority conducted a dawn raid?

Yes.

22. Has the authority imposed penalties on officers/directors of companies for offence committed by the company?

Yes, CCI has imposed penalties on officers and directors of companies for offences committed by the company.

23. What are the pre-merger notification threshold, if any, for the buyer and seller involved in a merger?

Acquisition, mergers and amalgamation by or between enterprises are notifiable to the CCI if the parties therein or their group meet the assets or the turnover thresholds in India or worldwide with the minimum India component.

The pre-merger notification thresholds prescribed in section 5 of the Act are outlined in the table.

By notification, dated 27 March 2017, where the value of assets being acquired, taken control of, merged or amalgamated is not more than 3.5 billion rupees in India or turnover of not more than 10 billion rupees in India, the government of India has exempted such acquisitions or mergers from the provisions of section 5 of the said Act for a period of five years from the date of publication of notification.

Thresholds For Filing Notice
 IndiaAssets Turnover
Enterprise levelIndiaGreater than 20 billion rupeesORGreater than 60 billion rupees
Worldwide with India legGreater than US$1 billion with at least 10 billion rupees or more in IndiaGreater than US$3 billion with at least 30 billion rupees or more in India
OR
Group levelIndiaGreater than 80 billion rupeesORGreater than 240 billion rupees
Worldwide with India legGreater than US$4 billion with at least 10 billion rupees or more in IndiaGreater than US$12 billion with at least 30 billion rupees or more in India

24. Are there any restrictions on minority investments?

The procedure in relation to the regulation of combination is provided under the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulation 2011 (the Combination Regulations). Regulation 4 provides that parties to the categories of combination enlisted in Schedule I need not normally file a combination notice with the CCI as those combinations are ordinarily not likely to cause appreciable adverse effect on competition. One such category is acquisitions solely as an investment or in the ordinary course of business resulting in the acquirer, directly or indirectly holding less than 25 per cent of the shares or voting rights of the target enterprise and the transaction does not lead to change of control.

The Combination Regulations further clarify that acquisition resulting in the acquirer holding less than 10 per cent of the shares or voting rights of the target enterprise would be treated solely as an investment, provided the acquirer has voting rights only proportional to his or her stake holding and is not a member of the board of the target and does not have the right or intention to nominate a director in the board of the target enterprise.

In the guidance provided through Notes to Form 1 for determining overlaps, following entities are to be considered by parties:

  • direct or indirect shareholding of 10 per cent or more.
  • a right or ability to exercise any right (including any advantage of commercial nature with any of the party or its affiliates) that is not available to an ordinary shareholder.
  • a right or ability to nominate a director or observer in another enterprise.

Further, through one of its decisions, the CCI has also clarified that if the acquirer and target are competing enterprises or vertically placed to each other, such transactions cannot take benefit of Regulation 4 of the Combination Regulation.

25. What discounts are available to companies that cooperate with cartel investigations?

Section 46 of the Act provides for a leniency programme. Competition Commission of India (Lesser Penalty) Regulations 2009 lays out the process, procedure and methodology for granting leniency to cartel members who break the ranks of the cartel and are instrumental in busting that alleged cartel.

26. Does the authority conduct criminal investigations and prosecutions for cartel activity? If not, is there another authority in the country that does?

The CCI does not conduct criminal investigations and only carries out inquiries that include investigation by the Director General. CCI, as noted earlier, may, through complaint before the Chief Metropolitan Magistrate, prosecute the parties who do not comply with the order passed by the CCI. Such proceedings may result in imprisonment for three years or a fine that may extend to 250 million rupees, or both, by the Chief Metropolitan Magistrate.


India: from the enforcer's competition economists

Address: 9th Floor, Office Block - 1, Kidwai Nagar (East), New Delhi, 110023, India
Tel: +91 11 2466 4100
Fax: +91 11 2081 5022

Contacts

Commission

Ashok Kumar Gupta
Chairperson
Email: cci-[email protected]

Sangeeta Verma
Member
Email: sangee[email protected]

Bhagwant Singh Bishnoi
Member
Email: [email protected]

CCI Office

Jyoti Jindgar
Secretary (Incharge) and Adviser (Eco)
Email: [email protected] , cci-[email protected]

Payal Malik
Adviser (Eco)
Email: [email protected]

Rakesh Bhanot
Adviser (FA)
Email: [email protected]

Manish Mohan Govil
Adviser (Law)
Email: [email protected]

Rakesh Kumar
Adviser (Eco)
Email: [email protected]

Dr Bidyadhar Majhi
Adviser (Eco)
Email: [email protected]

Ved Prakash Mishra
Adviser (Law)
Email: [email protected]

Dr Sanjay Kumar Pandey
Adviser (Law)
Email: [email protected]

Sukesh Mishra
Adviser (Law)
Email: [email protected]

DG Office

Dr Atul Verma
Director General
Email: [email protected]

Questions and answers

1. How many economists do you employ?

There are 25 economists at present with the Competition Commission of India (CCI).

2. Do you have a separate economics unit?

Yes. The CCI has a separate Economics Division that ensures cohesive and systematic integration of economic analysis in the enforcement of the Competition Act, 2002.

3. Does the economist have the power to hire his or her own staff?

No.

4. How many of your economists have a PhD in industrial economics?

None.

5. Does the agency include a specialist economist on every case team? If not, why not?

Yes, case teams typically include an economist.

6. Do you have a chief economist?

No. We have a specialist Economics Division that is headed by an Adviser, Economics.

7. To whom does the chief economist report?

Head of the Economics Division reports to a member.

8. Is the economics unit a ‘second pair of eyes’ during cases – is it one of the agency’s checks and balances? If not, why not?

Yes. The Economics Division prepares independent assessment reports both for antitrust and combination cases and thus, in some sense, is a ‘second pair of eyes’ during cases.

9. How much economics work is outsourced? What type of work is outsourced?

In-house professionals of Economics Division attend to casework. As and when required, market studies are conducted with the assistance of sector experts or agencies engaged by the CCI.

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