Assessing benefits of the CCP

During the past decade, the competition compliance programme (CCP) has assumed a significant place in international competition law jurisprudence. The CCP is an important tool used by various competition authorities as a part of their advocacy programme aimed at educating companies and other business entities about the application of competition law in their day-to-day activities, and the ways of avoiding potential antitrust infringements.

More importantly, the CCP is also considered as a mitigating factor by antitrust regulators at the stage of imposition of penalties, when entities are found to have contravened the competition law of the concerned jurisdiction. In a similar vein, the Competition Commission of India (CCI) published a Competition Compliance Manual in May 2017, with the objective of helping enterprises familiarize themselves with the nitty-gritty of the Competition Act, 2002, and to avoid liability under the act.

Significance of the CCP

Since ignorance of law cannot be an excuse, the CCP helps companies not to violate antitrust law, and encourages good corporate citizenship, which is one of the touchstones of achieving and enhancing social welfare. The manual explains the manner in which the act governs the relationship of an enterprise with third parties including competitors, distributors, suppliers, customers etc.

The manual also provides a general guidance, without distinguishing between sector or the size of the enterprise, and can be customized as per the sector and objectives of the companies. It mentions the ways of identification, assessment and management of risk associated with antitrust infringement, and suggests the constitution of a competition compliance committee and the appointment of a compliance officer for effective competition compliance, as well as emphasizing the senior management’s commitment towards implementation of the CCP.