Parliamentary Panel Seeks Stronger MSME Safeguards, Greater Transparency In CCI Penalties

New Delhi, Jul 22 (KNN) A Parliamentary Committee has recommended periodic reviews of the Competition Commission of India (CCI) regulatory framework, greater transparency in penalty calculations and stronger safeguards for micro, small and medium enterprises (MSMEs) and startups.

The recommendations are part of the committee's 257th Report on Subordinate Legislation, tabled in the Rajya Sabha, which examined four competition regulations and guidelines notified by the CCI in 2024, including those relating to settlements, commitments, turnover determination and monetary penalties.

Panel Seeks Transparent Penalty Methodology

The committee said competition laws should evolve in line with rapidly changing digital markets to ensure fair competition and alignment with global standards.

It recommended that the CCI clearly explain in its orders the methodology used to calculate penalties, enhancing transparency and predictability in enforcement, reported Business Standard.

Calls For Stronger Protection Of MSMEs

Chairing the committee, MP Murli Deora emphasised the need to protect MSMEs and startups from anti-competitive practices.

The panel said the CCI should ensure that competition laws are enforced effectively so that smaller businesses are not disadvantaged by unfair market practices.

Concerns Over Repeat Violations By Large Companies

The committee also expressed concern over repeated violations by certain large technology companies, noting that recurring penalties could be treated as merely a ‘cost of doing business.’

It urged the CCI to enforce penalty guidelines more rigorously in cases involving repeated contraventions to preserve the deterrent effect of competition law.

Recommends Greater Coordination With Sectoral Regulators

The CCI informed the committee that it has adopted a restrained approach in sectors where specialised regulators exist.

However, the committee recommended that the regulator establish formal cooperation mechanisms, including Memoranda of Understanding (MoUs), with sectoral regulators to facilitate information sharing and improve regulatory coordination.

CCI Reports High Recovery Rate

The Ministry of Corporate Affairs informed the committee that only one commitment case, related to online gaming, remains pending due to the ban on online gaming.

According to the report, the CCI has recovered Rs 2,039.36 crore out of the Rs 2,078.87 crore in realisable penalties, representing more than 98 percent recovery.

As of March 31, 2026, the CCI had imposed total penalties of Rs 20,378.65 crore, of which Rs 18,299.78 crore had been stayed or quashed by appellate courts.

The CCI also informed the panel that it has disposed of 1,237 of the 1,375 antitrust cases received so far.

(KNN Bureau)