Competition law reforms may be delayed due to the vacancies at CCI

The implementation of competition law reforms in India may have to wait due to delay in appointments to key positions at the Competition Commission of India (CCI). Although the Competition Amendment Act, 2023 was passed during Parliament’s budget session, the CCI has been without a chairman and three other members since October 2022. The government is currently contemplating the best time to implement the reform measures, and the process of appointing the appropriate functionaries is underway.

The modifications approved by the Parliament contain provisions for a new negotiated settlement plan as well as the benefit of deemed approval for mergers and acquisitions if the CCI does not issue a prima facie opinion within 30 days of receiving the request. However, the CCI is currently working with just two members, that is one short of the quorum required for adjudication. Therefore the government is debating whether the new regulations can be implemented with only two members or whether it should wait for new members to be appointed. The government wants to guarantee that the transition to the new regime is as smooth as possible, and that the CCI has the necessary competence to implement the legislative changes.