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Drafting, Pleadings and Appearances · Appearance before other Regulatory and Quasi-judicial Authorities

Competition Act Proceedings and Practice before the CCI

Updated 11 October 2026 · Fact-checked

Proceedings before the Competition Commission of India (CCI) start with information or a reference, followed by a prima facie view, a Director General (DG) investigation, objections and hearing, and a final order under section 27 with penalty and directions. Appeals lie to the NCLAT under section 53B. You answer by stating provision, facts, conclusion.

Understand Competition Act Proceedings and Practice before the CCI

The Competition Act, 2002 protects competition in Indian markets. The Competition Commission of India (CCI) is the regulator and the first adjudicator. It deals with three things: anti-competitive agreements (section 3), abuse of dominant position (section 4) and combinations (mergers and acquisitions above prescribed thresholds).

An inquiry usually begins when the CCI receives information or a reference. If it finds a prima facie case, it directs the Director General to investigate. The DG submits a report. The parties then get a chance to file objections and be heard. The CCI decides on the findings.

Section 4 says no enterprise or group shall abuse its dominant position. Dominant position means a position of strength in the relevant market in India that lets the enterprise operate independently of competitive forces, or affect competitors, consumers or the market in its favour. Abuse includes unfair or discriminatory conditions or prices (including predatory pricing), limiting production or technical development to consumers' prejudice, denial of market access, supplementary obligations with no connection to the contract, and using dominance in one relevant market to enter or protect another. Conditions or prices adopted to meet competition are excluded.

Predatory price means selling below cost, as determined by regulations, with a view to reduce competition or eliminate competitors.

If the CCI finds a contravention of section 3 or 4, section 27 lets it pass orders: stop and not re-enter the agreement or abuse, impose penalty, modify agreements, direct compliance with other orders including costs, and pass other directions. It may also pass orders against other members of a group that contributed to the contravention. Under section 48A, an enterprise facing an inquiry for contravention of section 3(4) or section 4 may apply for settlement, but only after the DG report under section 26(4) is received and before the cut-off set by regulations.

The right of appeal against CCI orders comes from section 53B, and the appeal lies to the NCLAT. Section 48A(7) bars an appeal under section 53B against a settlement order.

Key rules to remember

General penalty cap (section 27(b))
Penalty ≤ 10% of average turnover or income of the last three preceding financial years
Applies to each person or enterprise party to the agreement or abusing dominance. Turnover means global turnover from all products and services.
Cartel penalty (proviso to section 27(b))
Up to the higher of: 3 × profit for each year of the agreement, or 10% of turnover or income for each year
Applies to each producer, seller, distributor, trader or service provider in the cartel.
Dominant position (section 4 Explanation)
Position of strength in the relevant market in India enabling independence from competitive forces or affecting competitors, consumers or the market in its favour
Dominance itself is not an offence. Only its abuse is.
Settlement window (section 48A)
After receipt of DG report under section 26(4) and before the cut-off set by regulations before an order under section 27 or 28
Available for section 3(4) and section 4 inquiries only. No appeal under section 53B against a settlement order. Amounts go to the Consolidated Fund of India.

How to solve Competition Act Proceedings and Practice before the CCI questions

Use the same sequence for any case-based question on CCI proceedings.

  1. 1Identify the alleged conduct: agreement (section 3), abuse of dominance (section 4) or a combination.
  2. 2Test the elements. For section 4, define the relevant market, check dominance, then match the conduct to a limb of section 4(2).
  3. 3Check for exceptions, such as a condition or price adopted to meet competition.
  4. 4Trace the procedure: information or reference, prima facie view, DG investigation, report, objections, hearing, order.
  5. 5State the available orders under section 27 and the penalty cap, computing it if figures are given.
  6. 6Consider settlement under section 48A if the inquiry is under section 3(4) or section 4 and the stage allows it, that is, the DG report has been received and the regulatory cut-off has not passed.
  7. 7Advise on remedy: appeal under section 53B to the NCLAT against the CCI order, except against a settlement order.
  8. 8Conclude clearly with the practical drafting or compliance step.

Quickest way: Four-line CCI answer

When to use it: When time is short and the question asks what the CCI can do or how to proceed.

  1. Name the section breached and quote the key words of the test.
  2. Apply one or two facts to each element.
  3. List the section 27 orders and the penalty ceiling.
  4. Close with the route: settlement if eligible and the stage allows, otherwise appeal under section 53B to the NCLAT.

Common mistakes in Competition Act Proceedings and Practice before the CCI

  • Treating dominance as illegal in itself.

    Students read section 4 as banning large firms.

    Fix: Write that only abuse of dominant position is prohibited, and then match the conduct to section 4(2).

  • Applying the 10% cap to cartels without the proviso.

    Students remember only the general rule.

    Fix: For cartels, state up to three times profit per year or 10% of turnover per year, whichever is higher.

  • Using only Indian turnover to compute penalty.

    The relevant market is in India, so students assume turnover is too.

    Fix: Explanation 2 defines turnover as global turnover from all products and services.

  • Offering settlement for any contravention.

    Students generalise section 48A.

    Fix: Settlement covers only inquiries for section 3(4) or section 4. A cartel under section 3(3) is not covered.

  • Saying settlement orders can be appealed.

    Students assume every CCI order is appealable.

    Fix: Section 48A(7) bars an appeal under section 53B against a settlement order.

  • Calling a price cut predatory without checking cost and intent.

    Students focus on the low price alone.

    Fix: Predatory price means below cost as set by regulations, with a view to reduce competition or eliminate competitors. Also check the meeting-competition exception.

Worked examples

Example 1

Vega Telecom Ltd, dominant in the relevant market in India, sells data packs below cost in one region to drive out a small rival, and also makes its handset sales conditional on buying an unrelated insurance product. Advise on liability under section 4 and the orders CCI may pass.

Show the solution
  1. Dominance: the facts state that Vega is dominant, meaning it holds a position of strength in the relevant market in India, so section 4 applies. In a real case the CCI must define the relevant market and establish dominance before it looks at abuse.
  2. Pricing below cost to eliminate a rival fits predatory price, which is an unfair or discriminatory price under section 4(2)(a)(ii), unless it was adopted to meet competition.
  3. Tying insurance to handsets is a supplementary obligation with no connection to the subject of the contract, covered by section 4(2)(d).
  4. Procedure: CCI forms a prima facie view, the DG investigates and reports, parties file objections and are heard.
  5. Orders under section 27: direct Vega to discontinue the abuse, impose penalty up to 10% of the average of the turnover or income for the last three preceding financial years (turnover means global turnover from all products and services under Explanation 2), and pass other directions.
  6. If the group's other members contributed, orders may be passed against them too.
  7. Settlement under section 48A is possible only after the DG report is received under section 26(4) and before the cut-off set by regulations. The facts do not say that stage has been reached, so do not assume it.

Answer: On the stated facts, Vega's conduct falls within section 4(2)(a)(ii) and 4(2)(d), once the CCI defines the relevant market and finds dominance. The CCI may order it to stop the abuse and impose a penalty of up to 10% of the average of its turnover or income for the last three preceding financial years, with turnover meaning global turnover. Vega can apply for settlement under section 48A only after the DG report is received and before the regulatory cut-off. Otherwise its remedy against the final order is an appeal under section 53B to the NCLAT.

Example 2

After a section 4 inquiry begins against Rao Foods Ltd, the DG's report is received. Its average turnover for the last three preceding financial years is ₹800 crore. Can Rao seek settlement, and what is the maximum penalty if it is found to have abused dominance?

Show the solution
  1. Eligibility: the inquiry is under section 4, and section 48A covers it.
  2. Timing: the application can be made after receipt of the DG report under section 26(4) and before the cut-off set by regulations before an order under section 27 or 28.
  3. Penalty ceiling: 10% of ₹800 crore = ₹80 crore.
  4. The cartel proviso does not apply because this is not a cartel agreement.
  5. If settlement is agreed, Rao pays the amount fixed or follows other terms, and no appeal lies under section 53B against that order.

Answer: Yes, Rao can apply for settlement at this stage. If instead the CCI finds abuse, the maximum penalty is ₹80 crore, with turnover read as global turnover.

Exam tips

  • Quote the section number with the operative words, such as section 27(b) penalty ceiling and Explanation 2 on turnover.
  • Structure each answer as provision, facts, conclusion, and end with a practical step such as a settlement application or an NCLAT appeal.
  • Do not forget that you must separate cartel penalty from the general penalty when facts mention a cartel.
  • For combinations, say only what you are sure of: they are mergers and acquisitions above prescribed thresholds. Do not state threshold figures from memory.

Practice questions from Appearance before other Regulatory and Quasi-judicial Authorities

Competition Act Proceedings and Practice before the CCI: frequently asked questions

What is the first step in a CCI inquiry?

The CCI receives information or a reference and forms a prima facie view. If a case exists, it directs the Director General to investigate. The DG then submits a report, and the parties are heard before the CCI passes its order.

Is being dominant an offence under the Competition Act?

No. Section 4 prohibits abuse of dominant position, not dominance itself. You must show conduct such as unfair prices, denial of market access or leveraging into another market.

Can I appeal a CCI order to the NCLAT?

Yes. The right of appeal against CCI orders comes from section 53B, and the appeal lies to the NCLAT. The exception is a settlement order under section 48A, against which section 48A(7) says no appeal lies under section 53B.

What are combinations under the Competition Act?

Combinations are mergers, amalgamations and acquisitions that cross the asset or turnover thresholds prescribed under the Act. The CCI examines them for appreciable adverse effect on competition.