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CCI’s Draft Regulations on Turnover Determination

CCI's Draft Regulations on Turnover Determination mind map
Recent News
Unveiled Draft Regulations
When
Following Competition Amendment Act 2023
Why
Determining Turnover for Penalties
What
Global Turnover Basis
Shift from Previous Norms
Exclusions in Computation
Indirect Taxes
Intra-Group Sales
Discounts
Stakeholder Feedback
Window Open Till January 12
Concerns Raised
Implications for Multinational Companies
Risk of Double Jeopardy
Penalty Provisions
Up to 10% of Average Sales or Income
For Three Preceding Years
Applicable to Anti-Competitive Agreements or Abuse of Dominance
Guidelines on Penalties
Anticipated Future Issuance
Calculation Methods
Based on Audited Consolidated Financial Statements
Certified Amount by Statutory Auditor or Chartered Accountant
Who
Competition Commission of India
Pros
Enhancing CCI's Authority
As Deterrent Against Violations
Strengthening Regulatory Framework
Cons 
Potential Financial Ramifications
Especially for Foreign Enterprises
Unintended Consequences
Disproportionate Penalties
Counterproductive to Objectives
Impact on Ease of Doing Business
Increased Compliance Costs
Way Forward
Refinement Based on Feedback
Balancing Deterrence and Fairness

To summarize, the CCI’s draft regulations on turnover determination are pivotal in shaping the penalty framework for anti-competitive practices. By shifting to a ‘global turnover’ basis for penalties, the CCI aims to strengthen its deterrent capabilities. However, this approach has raised concerns about disproportionate financial implications, especially for multinational companies and enterprises with a global presence. The CCI is currently soliciting public feedback to refine these regulations, indicating an effort to balance effective deterrence with fairness and practicality in enforcement.

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