July 30, 2016     

India: CCI introduces Guidelines for Assessment of Economic Legislations and Policies

 

The Competition Commission of India (CCI) in order to warrant that economic legislations are appropriate and do not adversely affect competition have introduced Competition Commission of India (Competition Assessment of Economic Legislations and Policies) Guidelines, 2016, which enumerates guidelines for assessing of legislation from the competition perspective.

 

 

Salient features of the Guidelines

  • To prevent implementation of legislation that may cause appreciable adverse effect on competition- With the object to ensure transparent assessment of select economic legislations and policies made and framed by the Parliament, State Legislatures, any Ministry or Department of Central or State Government from a competition perspective, the Competition Commission of India (CCI) has come up with the Competition Commission of India (Competition Assessment of Economic Legislations and Policies) Guidelines, 2016. If required, the CCI would suggest any modifications in the legislation or policy. Thus, by such assessment, the CCI seeks to prevent implementation of any provision that might cause appreciable adverse effect on competition.

  • Sources for Policy assessment:

    1. The Advocacy Division of the Commission will continuously scan and identify the economic legislations and policies (existing and upcoming) which may potentially have adverse effect on competition;

    2. Any Government Agency may refer any economic legislation or policy to the Commission for competition assessment;

    3. The Commission may identify any economic legislation or policy for assessment.

  • Expert panel of the Commission for Policy assessment- The panel constitutes of 5-7 reputed institutions having expertise in law, economics, finance or management to carry out initial competition assessment of the economic legislations or policies referred to them.
  • Process of Assessment- Various steps involved in policy assessment are demonstrated below:

These Guidelines will be effective from January 1, 2017 and remain in force until further reviewed by the Commission.

 

 

 

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