Parl panel flags repeat violations, seeks MSME protection in CCI rules
Panaji, Jul 21, 2026
A parliamentary panel has urged the CCI to periodically review its regulations, improve transparency in penalty calculations and strengthen safeguards for MSMEs and startups
Parliamentary panel on subordinate legislation has called for a periodic review of the Competition Commission of India's regulatory framework and greater transparency in penalty calculations, while urging the regulator to ensure adequate protection for MSMEs and startups, in a report tabled in the Rajya Sabha on Tuesday.
The recommendations are part of the committee's 257th report examining four key competition regulations and guidelines notified in 2024. These include CCI's regulations for settlement, commitment, determination of turnover and monetary penalty guidelines.
The House panel said that competition laws must keep pace with rapid changes in digital markets to ensure that the Indian market remains competitive, fair and aligned with global standards. The committee said that the CCI should provide the detailed methodology in its orders on how the penalty amount is calculated.
Stressing the need to protect small businesses, the standing committee chaired by MP Murli Deora said, "CCI must provide adequate protection to them and ensure that the laws must be enforced with much greater vigour to ensure that the least advantaged are not further disadvantaged by unfair or anti-competitive conduct."
The committee, in its discussion, raised concerns around the protocol and procedure for dealing with companies that have repeated and persistent violations reported against them, especially certain Big Tech companies. "Such repeated contraventions risk being internalised as a mere 'cost of doing business', thereby severely undermining the deterrent effect of the laws and regulations," the panel said while calling for strong enforcement of penalty guidelines, especially for repeated contraventions.
It sought clarifications about the basis for computation of the settlement amount in the Android Smart TV matter, where the final amount came to ₹20.24 crore.
The Commission, in its response to the panel, clarified that it has now exercised restraint in sectors where sectoral regulators exist. The panel, however, recommended that the CCI should explore institutional mechanisms for cooperation with sectoral regulators, including entering into Memoranda of Understanding, wherever appropriate. "Such collaborative arrangements may facilitate information sharing, promote policy coherence, and regulatory coordination in matters of common interest," the committee recommended.
The antitrust watchdog also said that it has avoided taking up suo motu cases, unlike in the initial years when public awareness of competition law was not as prevalent. "The Commission felt that there is somewhat of a conflict in that they are establishing a case against a party and also adjudicating it," the report said.
Clarifying its stance on some of the ongoing matters, CCI Chairperson Ravneet Kaur told the panel that in the case of the alleged abuse of dominant position in the aviation sector, the CCI is not conducting any joint investigation with the Directorate General of Civil Aviation.
The CCI is looking into a complaint regarding IndiGo Airlines allegedly abusing its dominant position during the period of flight disruptions in December 2025. Kaur said, "The matter has now been referred to the DG for investigation. Depending on the extent of cooperation from the parties, the matter would be taken forward and expedited."
The Ministry of Corporate Affairs informed the panel that, as of now, there is only one case of commitment pertaining to online gaming, which has not been taken to its final conclusion in view of the ban on online gaming.
The committee noted that out of the total realisable amount, more than 98 per cent has been realised by the CCI.
As on March 31, 2026, the total penalty imposed by the CCI stood at ₹20,378.65 crore, of which ₹18,299.78 crore has been either stayed or quashed by the appellate courts. The total realisable amount of penalty is ₹2,078.87 crore, out of which ₹2,039.36 crore has been recovered.
CCI informed the panel that, out of 1,375 antitrust cases received till date, 1,237 had been disposed of.
[The Business Standard]
