CCI seeks feedback on global turnover guidelines for penalty calculations

The Competition Commission of India (CCI) has released draft regulations aimed at determining the turnover of enterprises for penalty calculations, in line with the Competition (Amendment) Act 2023. This legislative update mandates penalties to be computed on a global turnover basis. The proposed guidelines are currently open for public feedback until January 12.

Under the new framework, the CCI's regulations would exclude indirect taxes, intra-group sales, and discounts when computing turnover figures. This development follows the President of India's approval of the Competition Amendment Bill in April 2023, marking the first overhaul of competition law since 2009.

The introduction of 'global turnover' aims to circumvent a prior Supreme Court ruling that restricted CCI's penalty imposition capabilities. Previously, penalties were determined based on 'relevant' turnover, often leading to substantial fines encompassing revenue from various products or services, irrespective of the infringement scope.

With Section 27 of the Competition Act, 2002, the CCI retains the authority to levy penalties on entities or individuals engaged in anti-competitive behaviours or monopolistic practices.