A parliamentary panel has called for stronger safeguards for Micro, Small and Medium Enterprises (MSMEs) and greater transparency in how the Competition Commission of India (CCI) imposes penalties. The panel said regulatory action must protect small businesses from disproportionate fines and legal burdens while ensuring effective competition enforcement. It urged the CCI to set out clear guidelines on penalty calculation and to explain the rationale for sanctions in accessible terms. The recommendation sought clarity to help MSMEs understand compliance obligations and appeal processes.

The panel recommended that penalty frameworks account for the size and resources of enterprises and that fines be proportionate to harm caused. It called for a published methodology that details factors such as duration of infringement, turnover affected and mitigation measures taken by the enterprise. The report advised introducing staggered penalties and compliance plans for small units to reduce undue business disruption. It also suggested expedited review mechanisms for contested decisions to limit legal costs for vulnerable firms.

Stakeholders said the reforms would strengthen enforcement predictability and improve compliance among MSMEs while preserving competition. The panel recommended closer coordination between the CCI and ministries responsible for small business policy to ensure that enforcement does not unintentionally hinder enterprise growth. It sought simplified procedural requirements and capacity building for entrepreneurs to meet regulatory standards. The recommendations emphasised the need for prospective impact assessments before imposing large penalties on entities with limited financial cushions.

The panel asked the CCI to provide a detailed response within a specified timeframe and to submit a revised penalty framework for parliamentary review. It encouraged engagement with industry associations, consumer groups and state regulators to ensure balanced outcomes. The panel said enhancing transparency and proportionality would support entrepreneurship and sustain competition enforcement that is fair and effective. It asked for consistent application across urban and rural markets and sectors.