The provision in the competition law that allows penalties based on a company’s global turnover is seen by experts as a deterrent to severe violations, encouraging entities to consider commitments and settlements and facilitating quicker corrective actions. With the amendments in effect, the Competition Commission of India (CCI) can now levy fines of up to 10 percent of a company’s global turnover for violations of competition law.
This provision is particularly significant for companies offering multiple products or services and gains importance as the CCI investigates cases concerning digital markets. The regulator will decide whether to apply penalties based on a company’s global turnover or its relevant turnover for the specific violation of competition norms.
Additionally, the penalty may amount to as much as 30 percent of the average relevant turnover or income, limited to the legal maximum of 10 percent of the global turnover. When it is impractical to ascertain the relevant turnover, the CCI may choose to base the penalty on the company’s global turnover, encompassing all its products and services.
