Competition Compliance clearly provides key benefits for any business today in India. It helps in minimizing the risks of competition law violation in the first place. The penalties that may be levied for violation of the Competition Act, 2002 are very high and cannot be ignored by any business enterprise in India. The implementation of an effective competition compliance programme is a must for every enterprise, Precaution is definitely better than cure and especially when the cure involves penalties that can be as high as 10% of the average turnover the last three years. Every enterprise in India should plan ahead and develop an effective compliance programme that is tailor made depending upon the activities undertaken by the said enterprise. An effective competition compliance programme involves raising awareness of the potential violations of competition law and share knowledge of how to avoid them at all levels of the organisation i.e. from employees to top management.
Apart from the hefty fines, there are various other reasons as to why enterprises cannot ignore to have an effective competition compliance programme. Some are enumerated below:
- Damage to the reputation, brand image. shareholder faith and customer confidence;
- Criminal liability;
- Lost time and money in order to fight an investigation;
- Abuse of dominance can also result in division of the dominant enterprise being ordered by the Commission;
- Payment of compensation to those affected by the competition law violation;
- Crucial agreements being declared to be void;
- Loss of business of potential customers, investors etc.