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Articles
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Need for
a realistic penalty regime
Financial Express, March 29,
2013
By Pradeep S Mehta
Most competition
agencies have developed transparent guidelines for
fining/penalties. Indeed, many of them did so after being
questioned by courts, such as US, EU, France and so on. Most
such guidelines follow a three step approach for defining
the penalty amounts. It is thus recommended that for less
serious contravention, the minimum amount should be 3% of
the overall turnover; 5% for serious contravention, and 7%
for very serious contravention. Recidivists (repeat
offenders) would come under the third category even though
their violation did not come under the same, if it was done
the first time. Indeed, the gravity of the violation can
differ due to subjectivity, but will need to be defended by
the CCI.
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