Neither Crime Nor (Much) Punishment: India’s Cartel Penalty Practices

Aditya Bhattacharjea and Oindrila De

Chapter Chapter 9 in Law and Economic Development, 2023, pp 225-256 from Springer

Abstract: Abstract We analyze the cartel penalty regime in India in light of the literature on optimal penalties for restitution and deterrence, as well as current penalty practices in different jurisdictions. Our analysis reveals that though India’s Competition Act allows for much harsher penalties than other jurisdictions in cartel cases, the actual practices followed by the Competition Commission of India (CCI) are often inconsistent and non-transparent, resulting in a large number of court cases and very low penalty recovery. Our analysis reveals that in the majority of cases, penalties fall short of restitution and deterrence benchmarks suggested by some earlier literature. We suggest that in order to enhance both punishment and deterrence, CCI should adopt a consistent profit and duration-based penalty regime already prescribed in the law, and issue penalty guidelines taking into account the lack of relevant profit/turnover data, aggravating and mitigating factors, as well as aberrations such as the role of trade associations in the Indian context.

Keywords: Cartel penalty; Law and economics; Optimal deterrence (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-24938-9_9

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DOI: 10.1007/978-3-031-24938-9_9

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