Home  /  Daily Current Affairs  /  04-04-2023 / Competition Amendment Bill, 2023

Competition Amendment Bill, 2023

Posted on April 4, 2023 by admin1  80

In News

  • Recently, Rajya Sabha passed the Competition Amendment Bill, 2023. 

About:

  • The Competition (Amendment) Bill, 2023  seeks to amend the Competition Act, 2002 which regulates competition in the Indian market and prohibits anti-competitive practices such as cartels, mergers and acquisitions that may have an adverse effect on competition. 
  • The Competition Commission of India (CCI) is responsible for implementing and enforcing the Act.

Amendments 

  • Penalties : The Bill seeks to defines ‘turnover’ for the purpose of penalty as global turnover derived from all the products and services by a person or an enterprise
    • The idea is to levy a penalty as a percentage of global turnover of the offending company, moving away from the current practice of levying a part of the local or relevant market turnover as penalty.
  • Decriminalisation : The Bill decriminalises certain offences under the Act by changing the nature of punishment from imposition of fine to civil penalties.
    • These offences include failure to comply with orders of the CCI and directions of the Director General related to anti-competitive agreements and abuse of dominant position.
  • Expands CCI’s Scope: The new provisions expand the scope of CCI’s merger regulation by bringing deals worth more than ?2,000 crore requiring regulator clearance.
  • Settlement Mechanism:  The amendment introduces a scheme for commitment and settlement which is meant to reduce litigation by way of negotiated settlements.
    •  This scheme is available to cases of anti-competitive agreements and abuse of dominance, but not to cartels.
  • Reducing US monetary Policy Influence: By reducing the use of the US dollar, countries can reduce the influence of US monetary policy on their own economies.

Significance :

  • Promoting Ease of Doing Business: The amendments to the Competition Act aim to reduce regulatory hurdles and promote ease of doing business in India. The amendments are expected to provide greater clarity to businesses operating in India and reduce the compliance burden for companies.
  • Enhancing Transparency: The inclusion of global turnover in the definition of “turnover” aims to enhance transparency and accountability in the Indian market. The amendment ensures that companies cannot escape penalties for competition law violations by shifting their revenue to other countries.

Competition Commission of India

  • Competition Commission of India (CCI) is a statutory body of the Government of India responsible for enforcing the Competition Act, 2002, it was duly constituted in March 2009.
  • The Act prohibits anti-competitive agreements, abuse of dominant position by enterprises and regulates combinations, which causes an appreciable adverse effect on competition within India.
  • The Commission consists of one Chairperson and six Members who shall be appointed by the Central Government.
  • The commission is a quasi-judicial body which gives opinions to statutory authorities and also deals with Antitrust cases. 

Source: LM

 
Previous article Stress Among the Medical Students
Next article SLINEX-23

Other News of the Day

In News Recently  Mathematicians have discovered  an “einstein tile” About An “einstein tile” – a shape that could be singularly used to create a non-repeating (aperiodic) pattern on an infinitely large plane. Here, “einstein” is a play on German ein stein or “one stone” – not to be confused with Albert Einstein, the famous German...
Read More

In News Recently, the Finance Ministry released  provisional data regarding FY 2022-23 Tax collections.  About   India’s net direct tax collections have risen 17.63% in 2022-23 to touch ?16.61 lakh crore, exceeding the revised estimates target for the year by 0.7%. Corporate tax contribution to  gross direct tax  was ?10.04 lakh crore, just a tad...
Read More

In News The Geographical Indication Registry granted Chhattisgarh’s aromatic rice, Nagri Dubraj, a geographical indication (GI) tag. The Morena and Rewa Mango (both Madhya Pradesh) have also given the Tag. About Nagri Dubraj Rice It is produced by a women’s self-help group. The women's self-help group “Maa Durga Swasahayata Samuh '' of Nagri in Dhamtari...
Read More

In News Union Minister for Ports, Shipping and Waterways Shri Sarbananda Sonowal today launched the App Version of National Logistics Portal (Marine)  ‘Sagar-Setu’. About The SAGAR-SETU app of the National Logistics Portal (Marine) will provide real-time information on vessel-related information, gate, container freight stations, and transactions, enabling digital transactions for payments. The app will boost...
Read More

In News Recently, the demand to hold a second referendum for Scotland’s independence was rejected by the British Prime Minister.  More about the “demand for Scottish independence”  Beginning of the independent Kingdom of Scotland: The independent Kingdom of Scotland was formed in the 9th century and went on to fight wars to remain independent from...
Read More

In News Recently, the Telecom Regulatory Authority of India repealed dial-up internet connection service norms. About Dial-up Internet access is a form of Internet access that uses the facilities of the public switched telephone network (PSTN) to establish a connection to an Internet service provider (ISP) by dialling a telephone number on a conventional telephone...
Read More

In News The premier investigating police agency of India, the Central Bureau of Investigation (CBI), completes its 60 years of service to the nation. About  Diamond Jubilee Inauguration On this Occasion, the Prime Minister Narendra Modi inaugurated the Diamond Jubilee Celebrations in New Delhi. The PM said the CBI has established itself as a trustable...
Read More