Cracking Down On Cartels: Enhancing Detection, Investigation, And The Imperative For Strengthening Leniency Programs

Ana Zehra, Amity University, Lucknow Campus

Asst. Prof. Aradhana Yadav, Amity University, Lucknow Campus

ABSTRACT

Cartels, devious in nature, undermine the essence of a competitive market. These covert pacts among rivals aim to manipulate prices, restrict output, or divide markets. They skew the balance of supply and demand, leading to exorbitant prices and fewer choices for consumers1. In response, India's Competition Act, 2002, and the vigilant Competition Commission of India (CCI) address this threat. They focus on countering cartels to protect consumer welfare and economic efficiency. Yet, the secretive and complex nature of cartels makes detection and investigation challenging. This doctrinal legal research critically assesses India's approach to cartel enforcement. It highlights areas needing improvement and suggests effective anti-cartel strategies. Central to this study is an analysis of the CCI's detection and investigation methods. These include dawn raids, economic analyses, and forensic technologies. The research evaluates their effectiveness and suggests enhancements, like advanced analytical tools and stronger inter-agency collaboration. It emphasizes the crucial role of leniency programs in breaking cartels and obtaining vital evidence. The study examines India's leniency policy, drawing from global best practices and other countries' experiences. It aims to refine the policy for better transparency and incentives, encouraging cartel members to cooperate with authorities. Additionally, the research reviews corporate compliance programs and anti-cartel initiatives. It assesses the CCI's enforcement methods, such as fines, orders, and remedies, in deterring and addressing cartel activities to restore market competition.