From Relevant To Global Turnover: Does The Needle Really Move?

Introduction

Encouraging an equitable and a competitive market is a fundamental objective of every economy and India is no exception. In furtherance of this, the Competition Commission of India ("the CCI"), set up under the Competition Act, 2002 ("the Act"), has the power to levy penalties on persons or enterprises entering into anti-competitive agreements and abusing their dominant position in the market. One of the recent amendments to the Act and subsequent guidelines are purported to drastically change this penalty regime by transposing the yardstick for determining the quantum of penalty. Since such an amendment is expected to have far-reaching implications for businesses, regulators, and consumers alike, it is imperative to analyse the interplay between the concepts of relevant & global turnover and assess its correctness in light of the existing competition landscape in India.