Draft Regulations for Lower Penalty Under Leniency Plus Regime

• 21 Oct 2023

In line with the recent amendments to the Competition Act, the Competition Commission of India (CCI) has recently unveiled draft regulations concerning lower penalties as part of the leniency plus regime.

Key Points

• Expanded Eligibility for Leniency: Notably, the draft regulations extend eligibility for leniency to include trade associations, alongside business enterprises and their individuals.
• However, this inclusion has raised concerns regarding the compatibility with existing legal provisions.
• Provisions of the Competition (Amendment) Act, 2023: The Competition (Amendment) Act, 2023 introduces the concept of lesser penalty plus.
• Under this provision, an applicant who has already sought a lesser penalty concerning one cartel will be encouraged to provide further information about a second cartel.
• Benefits for Applicants: Applicants can receive an additional reduction in penalty for the first cartel, in addition to the reduction in penalty according to priority status for the first cartel.
• Reduction in Penalty: The reduction in monetary penalties can be as high as 30% for the first cartel and up to 100% for the second cartel.
• Confidentiality Assurance: The draft regulations promise complete confidentiality from the CCI and its Director General regarding the applicant's identity and disclosed information.
• A Positive Step towards Cartel Discovery: The draft regulations introduce the leniency plus regime, aiming to extend the reach of the leniency program and assist the CCI in uncovering multiple cartels or bid rigging cases.