Competition Act gives CCI wide powers Conversation on slapping a fine of Rs 1 crore on Kingfisher with Samir Gandhi Partner Economic Laws Practice

Bar & Bench speaks to Samir Gandhi (pictured), Competition Law Partner, Economic Laws Practice on the recent fine of Rs. 1 crore on Kingfisher making headlines. Gandhi has instructed Additional Solicitor General Gaurav Bannerjee for the Competition Commission of India in the Kingfisher case and has immense experience in the area of competition law..Bar & Bench (B&B): Fining Kingfisher, amounting to Rs. 1 crore. What is going to be the impact?.Samir Gandhi (SG): The Competition Act gives the Competition Commission of India (CCI) wide-ranging powers to impose penalties and under Section 43 of the Act, the CCI may impose a fine of Rs. 1 lakh a day upto a maximum of Rs. 1 crore for failure to comply with the directions given by the Director General and / or the CCI..By fining Kingfisher Airlines with the maximum amount of Rs. 1 crore, the CCI has sent out a strong message that it is prepared to use its powers to levy penalties, which is has not done so far..B&B: Kingfisher Jet alliance leading to a dominant position. Your views on this?.SG: The CCI has not reached a final determination in the case, so it would be premature to arrive at any conclusions. The fine imposed by the CCI is not a finding on whether the Kingfisher-Jet alliance was indeed an anti-competitive agreement, as was alleged. Instead, the fine has been imposed in order for the CCI and the Director General to be able to collect the requisite information on the basis of which they may come to a final finding..B&B: Kingfisher had filed an SLP, which it was forced to withdraw. Do you think they have taken this into account?. SG: It will be interesting to have a closer look at the methodology used by the CCI to compute the fine and whether it has included the period during which Kingfisher airlines had approached the Supreme Court through a Special Leave Petition..(picture source: Business Today)