The Competition Commission of India (CCI) has actively investigated 35 cartel cases across various sectors over the past five years, according to a Lok Sabha response by Finance and Corporate Affairs Minister Nirmala Sitharaman. The cases span industries including healthcare, railways, financial services, iron and steel, with nearly half categorized under miscellaneous industries.
Expanding Investigations and Legal Reforms
Between FY22 and FY25, 21 cases were referred to the Director General’s office for further investigation. So far, 11 reports have been submitted to the Commission, while 10 cases remain under active investigation. A final order has been passed in only one case, while the others are still awaiting review by the antitrust regulator.
The CCI is currently investigating allegations of cartelisation in the advertising sector, with recent raids on multiple firms to gather evidence. This aggressive enforcement reflects a broader regulatory push to crack down on anti-competitive behavior in critical industries.
New Legal Mechanisms to Strengthen Cartel Enforcement
The Competition (Amendment) Act, 2023 has introduced new provisions to strengthen cartel detection and enforcement. One of the major reforms is the “lesser penalty plus” mechanism, which incentivizes companies to self-disclose their involvement in cartels. Under this mechanism, a firm already applying for a lesser penalty for one cartel can gain further leniency if it voluntarily discloses another cartel not yet known to the CCI.
Additionally, the hub-and-spoke model has been introduced to expand the definition of cartel participation. This legal framework allows regulators to hold companies accountable even if they do not directly engage in price-fixing or market allocation. If an enterprise is found to facilitate cartelisation, even without being an active participant in similar trade, it can still be presumed to be part of the cartel agreement.
Also read: Ad Industry Raids Follow Leniency Tip-Offs: CCI
What This Means for Businesses in India
As CCI strengthens its antitrust enforcement mechanisms, companies operating in highly regulated sectors must ensure compliance with competition laws. The expanded scope of cartel investigations means that businesses engaging in pricing agreements, supply coordination, or other restrictive trade practices could face increased scrutiny.
With more companies turning to leniency programs to disclose cartel involvement, market players should review their internal compliance frameworks to mitigate legal and financial risks. As regulatory oversight intensifies, businesses must stay proactive in ensuring fair competition practices to avoid penalties and reputational damage.
The coming months will be crucial in determining how these new legal tools reshape competition regulation in India, as CCI continues to actively investigate and take action against cartelisation across multiple industries.
