Director General And Competition Commission Powers Clarified

Introduction

The Madras High Court recently in Hyundai Motor India Limited ("Hyundai") v. Competition Commission of India ("CCI") has clarified that under the Competition Act, 2002 ("the Act"):

• The Director General ("DG") cannot initiate an investigation sou motu;
• The process to be followed should be: DG to submit information to CCI, and then CCI to cause an inquiry under Section 19 of the Act and order for an investigation – thereafter DG can initiate investigation.
• The CCI is not required to form a prima facie opinion before initiating an investigation upon receipt of information pertaining to the same subject matter.

This article analyses the aforesaid decision of the Madras High Court.