CCI Penalty Limit Explained
The Competition Commission of India (CCI) has the authority to impose penalties on firms found engaging in anti-competitive activities.
Penalty Calculation Basis
- The penalty is calculated based on the firm's financial performance.
- Specifically, it is a percentage of the average turnover or income.
- This average is taken over the three preceding financial years before the CCI's order.
Maximum Penalty Amount
As per the Competition Act, 2002, the CCI can impose a penalty that is not more than Ten percent of the average turnover/income of the firm of the three preceding financial years.
Therefore, the correct limit is 10% of the average turnover/income over the last three financial years.
Important Questions from Business Competition
Which of the following is a guideline to deal with colleagues?
The shut down refers to complete cessation or closing down of the business. It involves which of the following?
i) No buying or selling
ii) No manufacturing
iii) Shifting of business from one place to another place
iv) Assets to be sold or disposed off
v) Returning capital to owners
- Arrange the following steps in the investigation process of combinations by the Competition Commission of India in the correct order.
A. Call for a report from the Director General
B. Invite any person, affected parties to file written objections
C. Direct the parties of combination to publish details of the combination
D. Call for additional information from the parties of the combination
E. Issue a notice for show-cause to the parties of the combination
Choose the correct answer from the option given below: - Choose the correct section of the Competition Act, 2002 Which provides that 'No enterprise shall abuse its dominant position' :
- The remedies for the violation of Sections 3 and 4 of the Competition Act have been laid down under
