CCI rolls out new regime to nudge cartel members to come clean

The govt introduced the regime, as cartels are among the worst forms of anti-competitive practices

- Gireesh Chandra Prasad

The Competition Commission of India (CCI) has rolled out a new ‘lesser penalty plus’ regime to incentivise individuals and cartels already under scrutiny to provide information about other cartels that the regulator does not know about. 

The ‘lesser penalty plus regulation 2024’ was notified late on Tuesday and came into effect immediately.

The scheme, which was made law last year by amending the Competition Act, adds a new dimension to existing ‘lesser penalty’ leniency regime, under which the CCI may waive or reduce the penalty on an entity (person or company) involved in a cartel if this entity makes a full and true disclosure of alleged violations.