Corporate Matters Before CCI: Supreme Court Jurisprudence Explained
Corporate Matters Handled by the
Competition Commission of India (CCI)
Blog by:
Jayprakash B. Somani
Advocate, Supreme Court of India & IP
Cell: PA 9322188701
www.jayprakashsomani.com
www.supremecourtlawfirm.com
1. Introduction to CCI
The Competition Commission of India (CCI) is a statutory body constituted under the Competition Act, 2002 to:
Prevent practices having adverse effect on competition (AAEC)
Promote and sustain competition in markets
Protect the interests of consumers
Ensure freedom of trade for market participants
The CCI plays a critical role in regulating corporate conduct, particularly in mergers, acquisitions, pricing practices, abuse of market power, and cartelisation.
2. Statutory Framework
Competition Act, 2002
Competition (Amendment) Act, 2007
Competition (Amendment) Act, 2023
CCI Regulations (Lesser Penalty, General Regulations, Combination Regulations, etc.)
3. Jurisdiction of CCI over Corporate Matters
CCI exercises jurisdiction over:
Anti-Competitive Agreements (Section 3)
Abuse of Dominant Position (Section 4)
Combinations (M&A Control) (Sections 5 & 6)
Cartels and Bid Rigging
Vertical Restraints
Leniency / Lesser Penalty Applications
Digital Market & Platform Economy (emerging area)
4. Anti-Competitive Agreements (Section 3)
4.1 Horizontal Agreements (Section 3(3))
Agreements between enterprises at the same level of the production chain, such as:
Price fixing
Output limitation
Market allocation
Bid rigging / collusive bidding
Such agreements are presumed to cause AAEC.
Leading Case Laws
Excel Crop Care Ltd. v. CCI (2017) 8 SCC 47
Supreme Court laid down the principle for penalty computation
Penalty to be based on relevant turnover, not total turnover
Rajasthan Cylinders & Containers Ltd. v. Union of India (2018) 1 SCC 644
Mere parallel conduct is not enough to establish cartelisation
CCI must prove meeting of minds
4.2 Vertical Agreements (Section 3(4))
Agreements between enterprises at different stages, such as:
Tie-in arrangements
Exclusive supply/distribution
Resale price maintenance (RPM)
Evaluated under the Rule of Reason, not presumption.
Case Law
Fx Enterprise Solutions India Pvt. Ltd. v. Hyundai Motor India Ltd. (2017)
Discount control policies can amount to resale price maintenance
5. Abuse of Dominant Position (Section 4)
5.1 What Constitutes Abuse
Unfair or discriminatory pricing
Predatory pricing
Denial of market access
Leveraging dominance in one market to enter another
Dominance itself is not prohibited; abuse is.
Leading Case Laws
CCI v. Fast Way Transmission Pvt. Ltd. (2018) 4 SCC 316
Supreme Court upheld CCI’s finding of abuse of dominance
Emphasised consumer harm and market foreclosure
Uber India Systems Pvt. Ltd. v. CCI (2019) 8 SCC 697
Predatory pricing requires proof of dominance, intent, and below-cost pricing
Google LLC v. CCI (2023–24)
Abuse in digital markets
Tying, self-preferencing, data dominance
One of the most significant corporate competition rulings in India
6. Combination (Mergers & Acquisitions) Control
(Sections 5 & 6)
6.1 What is a Combination
Mergers
Amalgamations
Acquisitions of shares, control or assets
Above specified asset and turnover thresholds.
Mandatory pre-merger notification to CCI.
Key Corporate Issues Handled
Gun-jumping (failure to notify)
Structural and behavioural remedies
Market concentration analysis
Leading Case Laws
CCI v. Thomas Cook (India) Ltd. (2018) NCLAT
Acquisition of control must be notified
Even minority shareholding can amount to control
SCM Soilfert Ltd. / Bayer–Monsanto Merger Case
CCI imposed behavioural remedies to protect competition
7. Cartels & Leniency Regime
7.1 Cartel Enforcement
Heavy penalties (up to 10% of turnover)
Directors and officers can be personally liable
7.2 Lesser Penalty (Leniency)
First whistle-blower can get up to 100% penalty reduction
Case Law
CCI v. Aluminium Phosphide Tablet Manufacturers (2017)
One of the earliest cartel cases
Established cartel detection standards
8. Digital & New-Age Corporate Competition Issues
CCI increasingly handles cases involving:
Big Tech (Google, Amazon, Meta)
App stores and platform neutrality
Algorithmic pricing
Data as a source of dominance
The 2023 Amendment empowers CCI with settlement and commitment mechanisms.
9. Powers of CCI in Corporate Matters
Order cease and desist
Impose penalties
Modify agreements
Approve or block mergers
Order division of dominant enterprise (rare but statutory power)
10. Appellate Remedies
Appeal against CCI orders lies before NCLAT
Further appeal lies before the Supreme Court of India
11. Important Supreme Court Judgments on CCI Jurisdiction
BCCI v. CCI (2018) 10 SCC 521
Sports bodies are also enterprises under the Competition Act
SAIL v. CCI (2010) 10 SCC 744
Procedural safeguards
Scope of CCI’s prima facie powers under Section 26(1)
12. Penalties & Compliance for Corporates
| Violation | Penalty |
|---|---|
| Cartel | Up to 3x profit or 10% turnover |
| Abuse of dominance | Up to 10% turnover |
| Gun-jumping | Up to 1% of total turnover |
| Non-compliance with orders | Daily penalties |
13. Conclusion
The Competition Commission of India has emerged as a powerful regulator of corporate conduct in India. From M&A approvals to cartel enforcement, dominance abuse, and digital market regulation, CCI’s jurisdiction significantly impacts corporate strategy, governance, and compliance.
Supreme Court jurisprudence has consistently upheld the pro-competition and consumer-centric objectives of the Competition Act, while ensuring procedural fairness to corporates.
