As mandated under the Competition Act, 2002, the Competition Commission of India may impose penalties, and/or issue cease & desist order in appropriate cases. However, while imposing penalties under section 27 of the Act, the Commission takes into account the aggravating and mitigating factors before arriving at the fair and judicious quantum of such penalties.

Penalties are imposed in order to eliminate practices having adverse effect on competition, as well as for promoting and sustaining competition, primarily to protect the interests of consumers.

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha.

Penalties under section 27 guide assessment of aggravating and mitigating factors to curb anti-competitive practices. The Commission may impose penalties under Section 27 and issue cease and desist orders; in fixing penalty quantum it weighs aggravating and mitigating factors to determine a fair amount intended to eliminate practices adverse to competition and to protect consumers.