Regulatory Update: Notification amending the CCI inquiry procedure

On 19 September 2024, CCI has notified section 19(f) of the Competition Amendment Act, 2023, wherein sub-section (9) has been inserted under section 26 of the Competition Act, 2002 (The Act). This insertion has led to changes in procedure for inquiry by the Competition Commission of India (CCI), which will bring more transparency and fairness in CCI proceedings.

The procedure for enquiry is represented in the chart below, and the amendments brought in by the amendment are highlighted in red boxes:

Prior to the amendment, the procedure for inquiry involved an enforcement gap. The CCI was not empowered to close the matter, if the DG gives a report suggesting contravention of provisions under section 3 and 4 of the Act. Therefore, CCI could neither close the matter, nor order further investigation by the DG in such circumstances.

With this amendment, the CCI now has the power to either close the matter or pass necessary orders under Section 27 of the Act, after the completion of DG investigation. However, before passing such order the CCI must issue a show-cause notice and provide a reasonable opportunity of being heard to the concerned parties. 

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