JURJ

Leniency Programme in Cartel Cases: Pattern and Practices of Competition Commission of India vis a vis Legislative Framework

Author: Ms. Deeksha Sharmaa Dr. Tilottama Raychaudhuri

Abstract:

 There has been a consensus across the world about the adverse effects of cartels on economy as well as consumer welfare which function tacitly in domestic jurisdictions as well as cross border realm. The chief challenge before the competition authorities in cartel enforcement has been the detection, identification and proof of existence of a cartel. Cartel agreements function secretly and their modus operandi may be through casual meetings, over the seminars or trade fairs, through emails or telephonic conversations etc.

The most effective tool for detecting cartels in mature competition law regimes has been the Leniency Programme and this has been adopted in many jurisdictions across the world. India also has laid down its Cartel regulation in the Competition Act, 2002 and leniency programme in 2009 through its Lesser Penalty Regulations 2009. It has been more than a decade that the lesser penalty regulations are in place in India but it wasn’t until 2017 that the first order under this legislative framework was passed. After a decade, it becomes pertinent to review the success, failures or challenges that have come in cartel enforcement by CCI and use of leniency programme to detect as well as deter cartelisation in India.

After a careful study of all the cases in which reduction in penalty was ordered by CCI since 2017, it is found that due to lack of uniform and certain guidelines as to imposition of penalty, there remains uncertainty among the potential applicants to come forward with vital information about the cartels. Therefore, the Lesser Penalty Regulations should be detailed in line with the international standards and there should be uniform guidelines in the pattern and practices of penalisation by the CCI.