Behind The Scenes: CCI's Methodology For Penalty Determination

1. Introduction

The Competition Act, 2002 ("Act") is the central statute which, through various provisions, aims to curb practices that affect competition adversely. Specifically, it prohibits anti-competitive agreements (section 3), prevents abuse of dominance (section 4) and regulates combinations (sections 5 and 6). The regulator and watchdog, Competition Commission of India ("CCI") is empowered to impose monetary penalties for findings of violations under the Act. Over time, there have been frequent requests for guidance on how penalties are calculated and imposed. The CLRC Report 2019¹ had emphasized the importance of establishing a clear basis for determining penalties. On March 6, 2024, CCI notified the CCI (Determination of Monetary Penalty) Guidelines, 2024 ("Guidelines") which provide a methodology for calculation of penalties for various violations. The Guidelines are short, contain eight provisions which explain the method of penalty determination under