CCI Asked To Ensure Corporate Penalties Do Not Become A Cost Of Doing Business

A Rajya Sabha parliamentary panel has asked the Competition Commission of India (CCI) to ensure stricter enforcement of penalty rules to prevent repeated violations of competition laws from being treated as a regular business expense.

The Committee on Subordinate Legislation, Chaired by Milind Murli Deora, said recurring breaches by companies could weaken the deterrent impact of competition regulations. It recommended that CCI use repeated violations as a factor while deciding penalties. The panel said effective antitrust enforcement is important to protect small businesses, MSMEs and startups from anti-competitive practices and ensure fair market competition.

The committee also recommended that the Ministry of Corporate Affairs (MCA) and CCI periodically review the competition law framework through stakeholder consultations and comparisons with global practices. It noted that regulations must evolve with changes in the digital economy and address emerging challenges.