Cartel Leniency Program in India – Why No Race Here?

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