Competition (Amendment) Bill 2022 passed by Lok Sabha

Tags: National National News

On March 29, 2023, the Lok Sabha passed the Competition (Amendment) Bill, 2022. The Bill aims to reduce the time limit for CCI to pass orders on such transactions from 210 days to 150 days.

An Overview of the News 

• The Bill proposes a framework for settlement and commitment to more quickly resolve investigations into anti-competitive agreements and abuse of dominant position.

• Certain offences under the Competition Act, such as failure to comply with CCI orders and directions of the Director General relating to anti-competitive agreements and abuse of dominant position, will be decriminalised under the Bill. The nature of punishment for these offences will change from fine to civil punishment.

• The Competition (Amendment) Bill 2022 was introduced in the Lok Sabha in August 2022 and was referred to the Standing Committee in the same month. The Standing Committee submitted its report in December 2022.

About Competition Act of 2002

• It is a law enacted by the Parliament of India to promote fair competition and prevent anti-competitive practices in the Indian market.

• It aims to create a level playing field for businesses, protect the interests of consumers and encourage innovation and efficiency.

• The Act establishes the Competition Commission of India (CCI) as the primary regulatory body to enforce competition laws and prevent abuse of dominant positions by companies.

• The CCI has the power to investigate and impose penalties on companies found to be indulging in anti-competitive practices such as price-fixing, bid-rigging, and abuse of dominant market positions.