**Executive Summary**
This document addresses Unstarred Question No. 1600 in Lok Sabha regarding the enforcement of the Competition Act, answered on February 9, 2026. The question covers developments in Jammu and Kashmir, implementation of recent Competition Act reforms, measures to improve CCI proceedings, and findings from the CCI's AI market study. The Minister of Corporate Affairs provides responses to the questions raised.
**Key Points / Main Content**
* **Enforcement in Jammu and Kashmir:**
* No case was initiated against entities based in the Union Territory of Jammu and Kashmir during the specified period.
* **Competition Law Reforms:**
* The Government of India has notified Rules and Regulations under the Competition (Amendment) Act, 2023 (details in annexure).
* The Competition (Amendment) Act, 2023 bases penalty calculation on global turnover.
* The CCI has notified the CCI (Determination of Monetary Penalty) Guidelines, 2024, establishing a methodology for penalty determination.
* **Improvements to CCI Proceedings:**
* The Competition (Amendment) Act, 2023 aims to improve efficiency, transparency, and timelines of CCI proceedings.
* The Act reduces the time limit for approval of combinations (M&As) from 210 to 150 days.
* The Act introduces settlement and commitment frameworks for faster resolution.
* The Act incorporates a Green Channel route for expedited approval of combinations through deemed approval.
* **AI Market Study:**
* The CCI undertook a market study on AI and Competition to understand AI systems, markets, and ecosystems.
* The study identifies competition concerns including concentration in the AI value chain, ecosystem lock-in, algorithmic collusion, self-preferencing, and AI-enabled price discrimination.
* Findings aim to promote a competitive AI ecosystem, protect consumer welfare, include self-audit of AI systems, improve transparency, and foster international cooperation.
* **Annexure:**
* The Competition (Amendment) Act, 2023 was notified on 11.04.2023.
* Various Rules framed under the Act include:
* Competition (Form of Publication of Guideline) Rules 2023.
* Competition (Minimum Value of Assets or Turnover) Rules, 2024.
* Competition (Criteria of Combination) Rules 2024.
* Competition (Criteria for Exemption of Combinations) Rules 2024.
* Relevant Regulations include:
* CCI (Lesser Penalty) Regulations, 2024.
* CCI (Settlement) Regulations, 2024.
* CCI (Commitment) Regulations, 2024.
* CCI (Determination of Turnover or Income) Regulations, 2024.
* CCI (Combination) Regulations, 2024.
* CCI (General) Regulations, 2024.
**Impact Analysis**
**Government of India/Ministry of Corporate Affairs**
* **Impact:** Required to enforce and implement the Competition Act reforms and address competition concerns in the AI market.
* **Action Required:** Continue implementing the outlined measures, regulations, and guidelines.
**Competition Commission of India (CCI)**
* **Impact:** Responsible for the effective enforcement of the Competition Act.
* **Action Required:** Must follow the new guidelines for penalty determination, streamlining proceedings, and addressing competition issues in the AI market through advocacy and policy initiatives.
**Businesses**
* **Impact:** Subject to revised regulations regarding combinations, penalties, and potentially required to conduct self-audits of AI systems.
* **Action Required:** Need to ensure compliance with the Competition (Amendment) Act, 2023 and its subsequent regulations.
**Consumers**
* **Impact:** Benefit from a more competitive AI ecosystem and protection from potentially anti-competitive practices such as algorithmic collusion and price discrimination.
* **Action Required:** No direct action required.
Key Entities Referenced
Competition (Amendment) Act, 2023: Key legislation that amends the existing Competition Act, introducing reforms related to settlement, commitment mechanisms, penalty determination, and merger reviews.
Competition Commission of India (CCI): The primary regulatory body responsible for enforcing the Competition Act, overseeing anti-competitive practices, and conducting market studies, including the AI market study.
Jammu and Kashmir: Union Territory where the enforcement of the Competition Act is specifically addressed in the parliamentary question.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 1600
ANSWERED ON MONDAY, FEBRUARY 9, 2026
ENFORCEMENT OF COMPETITION ACT
QUESTION
1600. Shri Jugal Kishore
Will the Minister of CORPORATE AFFAIRS
be pleased to state:
(a) the major developments made in the enforcement of the
Competition Act in Jammu and Kashmir during the year 2025 including
overseeing of anti-competitive practices and merger by the
Competition Commission of India (CCI);
(b) the steps taken by the Government to implement recent
Competition Act reforms including changes regarding settlement and
commitment mechanisms and penalty determination;
(c) the institutional and procedural measures taken by the Government
to improve the efficiency, transparency and timelines of proceedings
before the CCI; and
(d) the key objectives and competitive concerns identified in the
market study on the Artificial Intelligence (AI) made by the CCI along
with the manner in which its findings are likely to be used to guide
future competition policy and enforcement?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS AND
MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND
HIGHWAYS.
(SHRI HARSH MALHOTRA)(a) No case emanated from or was instituted against entities based
in the Union Territory of Jammu and Kashmir during the period.
(b) To operationalize recent competition law reforms, the
Government of India notified various Rules and Regulations under the
Competition (Amendment) Act, 2023. The details are placed at
Annexure.
With respect to penalty determination, the Competition
(Amendment) Act, 2023 provided for calculation of penalty based on
the global turnover of the person or enterprise. The Competition
Commission of India has notified the CCI (Determination of Monetary
Penalty) Guidelines, 2024, which lay down a detailed methodology for
determination of penalty.
(c) To improve the efficiency, transparency and timeliness of
proceedings before the Commission, Competition (Amendment) Act,
2023 introduced forward looking reforms to reduce the time limit for
approval of combinations (M&As), from 210 days to 150 days and also
introduced settlement and commitment framework in the interests of
faster resolution of competition cases.
Further, the Green Channel route incorporated under the Act
facilitates expedited approval of combinations through deemed
approval upon filing of notice with the CCI, thereby enabling faster
resolution of competition cases.
(d) The Market Study on AI and Competition was undertaken to
understand key AI system and markets/ecosystems including
stakeholders, essential inputs/resources, value chains, market
structures and competition parameters; examine emerging
competition issues; assess AI applications, opportunities, risks and
ramification; understand regulatory/ legal frameworks in India and
other major jurisdictions; and ascertain the Commission’s enforcement
and advocacy priorities.
The Study identified key competition concerns including
concentration in the AI value chain due to high upfront costs and
access to data and talent; ecosystem lock-in and switching costs,risks of algorithmic collusion through AI-driven pricing algorithms and
automated business decisions; self-preferencing across the AI tech
stack and AI-enabled price discrimination through use of consumer
data.
To promote a competitive AI ecosystem in India and protect
consumer welfare, the findings include self-audit of AI systems for
competition compliance by businesses; improved transparency and
reducing of information asymmetry; focused advocacy and capacity
building by CCI; continuation of Government policy initiatives; and
inter-regulatory coordination and international cooperation.Annexure
The Competition (Amendment) Act, 2023 was notified on
11.04.2023. Pursuant to the Amendment, the following Rules have been
framed under the Competition (Amendment) Act, 2023:
i. The Competition (Form of Publication of Guideline) Rules 2023. (GSR
No. 795(E).
ii. The Competition (Minimum Value of Assets or Turnover) Rules, 2024.
(GSR No. 547(E).
iii. The Competition (Criteria of Combination) Rules 2024. (GSR No. 548(E).
iv. The Competition (Criteria for Exemption of Combinations) Rules 2024.
(GSR No. 549(E).
In addition, all relevant Regulations under the Competition
(Amendment) Act, 2023 have been framed and notified, namely:
⮚ The Competition Commission of India (Lesser Penalty) Regulations,
2024
⮚ The Competition Commission of India (Settlement) Regulations, 2024
⮚ The Competition Commission of India (Commitment) Regulations, 2024
⮚ The Competition Commission of India (Determination of Turnover or
Income) Regulations, 2024
⮚ The Competition Commission of India (Combination) Regulations, 2024
⮚ The Competition Commission of India (General) Regulations, 2024
****