Faculty Seminar | Cartel Leniency Program in India – Why No Race Here?

The Faculty Seminar will be held on December 22, 2021. The paper is authored by Prof (Dr.) T.S. Somashekar, Professor of Economics, NLSIU, and Praveen Tripathi, Assistant Professor, School of Law, Bennett University.

Speaker

Prof (Dr.) T.S. Somashekar, Professor of Economics, NLSIU

Abstract

This study analysis the implementation of the cartel leniency program by the Competition Commission of India using comprehensive data and finds a distinct lack of a ‘race’ to the agency. We specifically focus on why prima facie findings have not resulted in a ‘shock’ to expected returns and hence induced leniency applications. Through theoretical and empirical analysis we find several inconsistencies in the determination and application of the penalty,thereby leading to much uncertainty and a lack of correlation with the gain or harm of a cartel. The resulting appeals, strategic or otherwise have only served to reduce the effective penalty and render the leniency program weak. In the conclusion, we offer suggestions to improve the program.