Parl panel urges CCI to review deal value threshold, address lack of resources & funding concerns

The Print

2 days ago

In the director general's office, out of 41 sanctioned posts, only 17 were filled in 2020-21. The number rose to 23 in 2022-23, but dropped to 16 in 2023-24, and further to 13 in 2024-25, the report said.
In its submission before the parliamentary panel, the MCA, under which CCI comes, has also acknowledged a 'huge gap' between the sanctioned strength and the actual staff.
The committee has recommended that the MCA, in collaboration with the CCI, must expedite a cadre restructuring proposal and increase the sanctioned strength of the CCI, particularly for specialised roles in the Digital Markets Division (DMD).
Formed in September 2024 with a strength of seven people, the CCI's DMD is a specialised unit to address the challenges of regulating digital markets. There is a proposal under consideration with the MCA to create an additional 55 posts to address the shortage of resources.
'Efforts should be made to attract and retain top talent, including data scientists, technologists, and market analysts, by exploring flexible engagement models (e.g., short-term contracts for experts),' the committee said.
The panel noted that rapid adoption of digital technologies presents both 'immense opportunities and significant challenges for competition regulation', but at the same time, the unique characteristics of digital markets, such as network effects and data advantage, have led to a concentration of economic power in a few large technology platforms that act as 'gatekeepers'.
'This necessitates a nuanced regulatory approach to balance innovation incentives with the imperative of maintaining fair competition,' the report reads.
'CCI imposing penalty, but not realising it'
While acknowledging the CCI's effectiveness in disposing of cases and imposing penalties, the parliamentary panel also highlighted its ineffectiveness in realising those penalties due to litigation.
In 2022-23, the CCI imposed penalties of Rs 2,672 crore, while realising only Rs 1,340 crore (50 percent). The rest was stalled due to litigation, the report said.
'As of April 30, 2025, out of a total imposed penalty of Rs 20,350.46 crore, a massive amount of Rs 18,512.28 crore has been either stayed or dismissed by appellate courts,' the committee stated in the report. 'While the CCI is effective at collecting penalties that are not under litigation, its overall enforcement is significantly undermined by legal challenges.'
To address this, the CCI is planning to implement a 'new provision mandating a 25 percent pre-deposit for appeals'. This would enable the company to deposit 25 percent of the penalty amount before filing an appeal.
The committee endorsed this provision, but also asked the CCI to 'adopt robust legal defence strategies' that would translate actions into tangible deterrence.
(Edited by Sugita Katyal)
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