The move will discourage parties–especially in cases of mergers and acquisitions, anti-competitive behaviour and abuse of dominant positions–from going back on their pledges or shying away from adopting the watchdog’s orders in letter and spirit, said experts.
In a late-night notification on Tuesday, the CCI also amended the so-called “confidentiality ring” regime that governs the treatment of confidential information in its proceedings, seeking to streamline the processes and prevent any delays in the disposal of cases.
The CCI (General) Regulations, 2024, follow the draft released in June which proposed the appointment of such agencies, among others. They now replace the CCI (General) Regulations, 2009, a move necessitated by last year’s amendments to the competition law.
The agencies to monitor compliance may include an accounting firm, management consultancy, any other professional organisation, chartered accountants, company secretaries or cost accountants, the regulator said in the notification, which was issued with immediate effect.
“The agencies… shall be independent of the parties to the proceedings in the matter, and shall confirm that they do not have any conflict of interest with the said parties,” it said. The agencies will have to maintain the “highest standards of confidentiality in respect of information received or collected” and submit their findings with the regulator periodically.The parties involved in filing for combinations, settlements and commitments will have to pay for the appointment of these agencies, without burdening the regulator with any such financial obligation.
“This regulation is key to bolstering the implementation of the CCI orders and putting in place a balanced system to deter any wrongdoers,” said Mohit Chaudhary, managing partner of law firm Kings & Alliance LLP.
Confidentiality ring
The CCI can now set up confidentiality rings comprising authorised representatives of the specified parties, who would be able to access sensitive information in unredacted form.
The key changes in the CCI (General) Regulations, 2024, also include a clearer distinction between interlocutory and miscellaneous applications, clarity on permission to engage multiple representatives through one authorisation letter and specified roles of various officers, said Anjali Malhotra, partner (regulatory) at Nangia Andersen India.
The regulations also spelt out detailed procedures that would be followed for initiating inquiries, handling complaints and ensuring compliance with the amended Competition Act.